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ARIZONA STATE SENATE
Fifty-Fifth Legislature, First Regular Session
unemployment insurance; definition; benefit amount
Purpose
Increases the wages an unemployed individual may earn in a week with no reduction to their unemployment insurance benefit (income disregard). Increases the wages an individual may earn while being considered unemployed.
Background
The federally-established Unemployment Insurance Benefit Program, administered by the Department of Economic Security according to state law, provides up to 26 weeks of unemployment benefits to persons unemployed through no fault of their own. Benefit payments are paid from Arizona's Unemployment Insurance Trust Fund which is funded by a tax paid by employers (A.R.S. Title 23, Chapter 4).
An individual is unemployed during a week in which either: 1) the individual performs no services and has no payable wages; or 2) the individual's wages for less than full-time work are less than the weekly benefit amount (WBA) for which the individual qualifies (A.R.S. § 23-621). Subject to a cap of $240, the WBA of an unemployed individual who meets prescribed eligibility requirements is equal to one twenty-fifth of their highest quarter earnings during the first four quarters of the most recently completed five quarters. An unemployed individual may earn up to $30 in a week with no reduction to their WBA. Earnings in excess of the $30 income disregard are subtracted from the WBA for which the individual qualifies (A.R.S. § 23-779).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Deems an individual unemployed if the individual's payable wages for less than full-time work in a week are less than 170 percent of the individual's WBA, rather than less than the individual's WBA.
2. Increases, from $30 to $160, the income disregard.
3. Makes technical changes.
4. Becomes effective on the general effective date.
Prepared by Senate Research
February 15, 2021
LB/kja