The Business Council opposes this bill which increases the maximum weekly unemployment benefit rate in each of the next three years to a maximum of $625 in 2013; and increases the taxable wage base from a current level of $8,500 to a maximum level of $13,000 in 2013. Additionally, starting in 2014, this bill proposes to index the taxable wage base and the maximum weekly benefit, sufficient to a level to support both Unemployment Insurance Trust Fund solvency and to assure benefits are adjusted to equal one-half the state’s average weekly wage.

The legislation would increase the maximum benefit rate by 54% and increase the taxable wage base by 58% through 2013, with unknown rate increases in subsequent years. New York’s approximately 500,000 tax rated employers paid over $2.3 billion in unemployment insurance taxes in 2008 on a taxable wage base of approximately $62.6 billion. If this bill were enacted, employer taxes for unemployment insurance would increase 14.7% in year one alone.

To read the rest of the bill memo click here.