January 28, 2020
UPDATE AS OF MARCH 11, 2021: Please note that the American Rescue Plan Act (ARPA) increased the amount of emergency relief for REIMBURSEABLE EMPLOYERS for weeks of unemployment beginning AFTER March 31, 2021, from 50 percent of UC paid to 75 percent of UC paid. The actual dates for 75% end up being the week ending April 10, 2021 through the week ending September 4, 2021. Since it’s based on reimbursement of UC paid for certain weeks, it covers all claims paid from that week, no matter whether it is a new claim or continuing claim – it’s based on payments made during those weeks that need to be reimbursed by the reimbursable employer, not based on when the claim originated.
The Dec 27th legislation gave us a time extension. There is still federal CARES Act funding available that can be allocated toward your unemployment account balance for COVID related benefit payments. In order to qualify for these funds, you must self-certify to a financial need to have these federal funds applied to your UI account balance.
Senate Bill 127 was signed into law by Governor Carney on July 17, 2019.
This Act changes the penalty for an employer’s failure to file a report required by the Division of Unemployment Insurance from $17.25 to 15% of the total contributions paid or payable by the employer, unless 15% of the total contributions is less than $100 or more than $450. If 15% of the total contributions is less than $100, the penalty is $100. If 15% of the total contributions is more than $450, the penalty is $450. These reports are used to calculate the unemployment tax assessments due from employers. The tax assessments fund Delaware’s Unemployment Trust Fund. The amount of this penalty has not been adjusted for inflation in over 25 years.
Senate Bill 128 was signed into law by Governor Carney on July 18, 2019.
This Act expands the collection procedures available to the Division of Unemployment Insurance to more closely match the collection procedures currently available to the Division of Revenue. The Act will provide the Division of Unemployment Insurance with streamlined procedures to allow it to more quickly and easily execute on judgments for unpaid unemployment compensation tax assessments and overpayments of tax benefits paid to individuals to which they were not entitled. These procedures include obtaining warrants for the levy and sale of property, garnishments of wages, bank accounts and other property, streamlined garnishment procedures, and denying or suspending professional licenses of judgment debtors. This Act also provides a streamlined process to renew the liens on judgments for an additional 10 years.
In accordance with 20 CFR Part 603, wage information and other confidential unemployment insurance information may be requested and utilized for other governmental purposes, including, but not limited to, verification of an individual’s eligiblity under other government programs.
The tax an employer pays depends on the size of the employer’s taxable payroll, the employer’s unemployment insurance tax rate and the taxable wage base. The taxable wage base is $18,500 and the minimum and maximum tax rates are .3% and 8.2% respectively.
Since the balance in the Delaware UI Trust Fund as of September 2018 was in excess of $125 million, the taxable wage base will remain at $16,500 for CY2019.
For more information on Unemployment Insurance please refer to the Employer’s Handbook.
|New Employer Rate||1.8%||1.8%||1.5%||1.6%||1.7%||1.9%|
|New Construction Rate||2.3%||2.3%||2.5%||2.9%||3.4%||3.7%|
To access the Online Employer Services Portal, click here.