Three representatives each from the employer and employee communities serve on the Unemployment Compensation Advisory Council, working closely and collaboratively with the Department of Labor & Workforce Development to provide feedback. From left to right, NFIB/Tennessee State Director Jim Brown, employee representatives Gary Moore, Bennie Overton and Mike Boner, Tennessee Labor & Workforce Development Commissioner Burns Phillips, Employment Security Director Linda Davis, and employer representatives Bob Pitts and Bradley Jackson.
Unemployment tax rates are sharply lower than five years ago, despite a slight increase in January. The Unemployment Trust Fund, however, continues to recover better than expected (the balance was $926 million on June 15).
NFIB expects a rate decrease in the second half of the year. Moving from Tax Table 5 to Table 6 will help many small businesses; a drop in the taxable wage base from $9,000 to $8,000 is also expected, which would provide further relief. Expect to see confirmation of the new tax rates, along with your new reserve ratio calculation and information about a new online filing requirement for many businesses, in August.
NFIB is a member of the Unemployment Compensation Advisory Council, which meets biannually. Here are other highlights from the most recent meeting:
- Conversion of Unemployment Modernization System is on schedule for April 2016
- 27,500 drawing benefits currently, average weekly benefit is $223, Jobs4TN.gov website lists approximately 90,000 available jobs across the state
- 94 percent of approved claims were paid within 21 days
- The Treasury Offset Program has resulted in the collection of nearly $36 million in overpayments since July 2012, which has helped the trust fund’s recovery. Expect state legislation to strengthen this requirement in 2016, along with legislation that may be needed to clean up the seasonal employer provision that takes effect in July 2016.
While many improvements have been made since comprehensive reforms were undertaken in 2012, much remains to be done. NFIB members are encouraged to contact State Director Jim Brown at [email protected] or 615-874-5288 with any questions or comments.
