ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

First Regular Session

House: MAPS DP 14-0-0-0

HB 2805: unemployment insurance; benefits; tax base

Sponsor: Representative Cook, LD 8

House Engrossed

Overview

Increases the taxable wage base, unemployment weekly benefit amount and income disregard cap beginning January 1, 2022.

History

A person is considered unemployed if the person performs no services and receives no wages or a person is working less than full-time without any fault on the person's part if the wages received are less than the person's weekly benefit amount (A.R.S. § 23-621).

The weekly benefit amount of a person is equal to one-twenty-fifth of the person's total wages for insured work paid during that quarter of a person's base period in which the total wages were the highest. Currently, if the total amount is more than $240 dollars, then the weekly benefit amount is capped at $240. Furthermore, if a person is unemployed but is receiving weekly wages that are below the weekly benefit amount but greater than $30, the $30 income disregard is subtracted from that wage amount. Once that amount is finalized, then the new amount is deducted from the weekly benefit amount the person is receiving (A.R.S. § 23-779).

Wages is currently defined as all remuneration for services from any source, including commissions, bonuses and fringe benefits and the cash value of all remuneration in any medium other than cash.

Wages does not include remuneration in excess of $7,000 paid in any calendar year to a person by an employer or the employer's predecessor with respect to employment during that calendar year. However, remuneration in excess of $7,000 is subject to a tax against which credit may be taken for contributions required to be paid into a state unemployment fund by employers (A.R.S. § 23-622).

Provisions

1.   Increases the taxable wage base from in excess of $7,000 to in excess of $8,000 beginning January 1, 2022. (Sec. 1)

2.   Increases unemployment weekly benefit amount from $240 to $300 beginning January 1, 2022. (Sec. 2)

3.   Increases the income disregard amount from $30 to $160. (Sec. 1)

4.   ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteMakes technical and conforming changes. (Secs. 1 and 2)

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8.                     HB 2805

9.   Initials ES  Page 0 House Engrossed

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