• Mission & Governance
• Services Overview
• How to Get Involved
• Standing Committees
• NCSL Foundation

• Issue Areas: A-Z
• State-Federal Relations
• NCSL Standing Committees
• News from D.C. and the States

• About State Legislatures
• Elections, Campaigns & Redistricting
• NCSL's StateConnect Directory
• Web Sites

• Online Guide to NCSL Services
• Staff Sections and Networks
• Meetings & Professional Development
• Staff Directories

• Meetings Calendar
• Online Registration
• Meetings Home Page
• Legislative Summit

• Bookstore
• State Legislatures Magazine
• NCSL's StateConnect Directory

2005 Unemployment Insurance Bills

(Tax/Trust Fund)

Unemployment Compensation (UC) is a joint federal-state program financed by federal taxes under the Federal Unemployment Tax Act (FUTA) and by state payroll taxes under the State Unemployment Tax Acts (SUTA). Employers required to pay state unemployment insurance (UI) taxes may remit their state unemployment taxes to states on a monthly, quarterly, annual or another basis as determined by state laws and regulations. States in turn, then remit the collected taxes to the Unemployment Trust Fund (UTF), where the funds are placed in the appropriate state unemployment account.

In 2005 state legislatures considered a variety of bills ranging from exempting unemployment benefits from taxable income to ensuring the solvency of the state UTF. Three states enacted UI laws related to these issues.

(See report prepared by the Congressional Research Service entitled, "Unemployment Compensation (UC) and the Unemployment Trust Fund (UTF): Funding UC Benefits," March 5, 2005 for more information.)

Colorado HB 1020	Creates an alternative base period for the purpose of qualifying workers for unemployment insurance benefits.	Vetoed By Governor, 5/25/05
HB 1208	Allows employer to claim a credit against unemployment insurance taxes under specified circumstances.	Session Law Chaptered. Chapter No. 156, 6/1/05
Idaho HB 4	Revises definitions in existing law relating to unemployment insurance tax rates; provides liability for amounts due from transferred experience rating accounts.	Chaptered. Chapter No. 5, 2/7/05
Illinois SB 2066	Deletes provisions that a person may voluntarily elect to have income tax deducted and withheld from unemployment insurance benefit payments only if the Director of the Department of Employment Security promulgates rules concerning the withholding.	To Governor, 2/16/05
Maine HB 255	Exempts from income, for purposes of computing Maine income tax, unemployment benefits, beginning January 1, 2005	In Senate. Failed Passage, 6/8/05
SB 172	Requires an employer on a state project to possess a federal and state tax identification number, be bonded, carry liability insurance and follow state requirements for unemployment and workers' compensation insurance	House Adopts Minority Committee Report: Ought Not To Pass, 6/2/05
L.R. 1549	LD 332- Exempts unemployment benefits from state income tax.	Introduced, 1/3/05
Maryland HB 798	Alters the unemployment insurance charging and taxation system; alters the standard rate of contribution; increases the maximum weekly unemployment insurance benefit amount.	Vetoed By Governor, 5/26/05
Massachusetts H.D. 4261	Submits a monthly report relative to the condition of the Commonwealth's Unemployment Insurance Trust Fund for December 2004.	Placed On File, 2/15/05
H.D. 4399	Submits a monthly report relative to the condition of the Commonwealth's Unemployment Insurance Trust Fund for February of 2005	Placed On File, 4/19/05
H.D. 4404	Submits a monthly report relative to the condition of the Commonwealth's Unemployment Insurance Trust Fund for February of 2005.	Placed On File, 4/19/05
S.D. 2066	Relates to the condition of the Unemployment Insurance Trust Fund for the month of December 2004	Placed On File, 2/10/05
S.D. 2112	Relates to the condition of the Unemployment Insurance Trust Fund for the month of January 2005	Placed On File, 3/7/05
S.D. 2171	Relates to the condition of the Unemployment Insurance Trust Fund for the month of February 2005.	Placed On File, 4/7/05
S.D. 2195	Relates to the condition of the Unemployment Insurance Trust Fund for the month of March 2005.	Placed On File, 4/26/05
S.D. 2254	Relates to the condition of the Unemployment Insurance Trust Fund for the month of April 2005.	Placed On File, 5/31/05
New York AB 6449	Relates to excluding up to a specific amount of unemployment compensation benefits from personal income taxation.	To Assembly Committee On Ways And Means, 3/11/05
AB 253	Makes provisions relating to the payment of unemployment insurance compensation by employers of household employees to permit such contributions to be made in a lump sum and reported with the filing of the personal income tax return.	To Assembly Committee On Labor, 1/10/05
North Dakota HB 1425	Relates to the unemployment insurance tax rate assigned to certain new employers involved in homebuilding.	Failed To Pass House, 1/27/05
HCR 3040	Directs the Legislative Council to study the unemployment insurance tax rate structure with special focus on the impact on new businesses.	Passed Senate, March 17, 2005;
Oregon HB 2127	Establishes new employer tax rate and reduces other employer tax rates for purpose of paying Employment Department expenses that are incurred in administration of unemployment insurance program	Chaptered. Chapter No. 183, 6/20/05
HB 2463	Exempts unemployment benefits from state personal income tax.	To House Committee On Business, Labor And Consumer Affairs, 2/7/05
HB 3440	Provides subtraction from taxable income for unemployment benefits; applies to tax years beginning on or after January 1, 2006.	To House Committee On Revenue, 4/5/05
SB 37	Allows Director of Employment Department to transfer to and assess against reorganized business entity certain unemployment insurance tax liabilities.	Chaptered. Chapter No. 214, 6/21/05
Pennsylvania H.R. 130	Directs the Legislative Budget and Finance Committee to review the unemployment compensation tax system	To House Committee On Labor Relations, 3/14/05