The law does the following:
- Directs that the appropriations go toward state unemployment tax relief for businesses in tiers 2 through 20, which results in reductions up to 25% for 2011.
- State unemployment tax reductions are retroactive to January.
- Seasonal employees may be ineligible for unemployment benefits, resulting in a 3% reduction in state unemployment tax costs to businesses.
- New companies come in at tier 12 for the first 12 months, which is a savings of approximately $200 per employee per year for new companies.
- For 2011, companies on a payment plan will pay 0.25% penalty per month (previously set at 1% per month).
- Companies that have a positive state unemployment tax balance will be in no class higher than class 12 for 2011 only.
- Reduction of benefits for the newly unemployed to 20 weeks from 26 weeks, resulting in an 8% reduction in overall state unemployment tax costs to businesses.