Unemployment Insurance - AGC Survey 2020

Big increases in employers’ unemployment insurance rates are expected in 2021 and 2022. Plus, changes to the system are being discussed in Olympia. Please share information and your thoughts with AGC’s Government Affairs staff. All responses will be confidential. Feel free to pass this on to someone else within your firm.

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* 1. If you are comfortable sharing, can you tell me what UI tax rate you currently (2020) pay?

Less than 1%

1-2%

2-3%

3-4%

4-5%

5-6%+

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* 2. Is your company primarily a:

Subcontractor

General Contractor

Other

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* 3. Is your firm affected by seasonality, large swings in employment levels during the year, which would affect your UI experience rating and therefore tax rate?

No, not impacted by seasonal swings in employment

Yes, impacted a little bit by seasonality

Yes, impacted a lot by seasonality

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* 4. On average during the year, how many employees does your company have?

Less than 50

50-100

More than 100

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* 5. Below are some proposals currently being floated involving the UI system. Please share any thoughts you have on any of these (open-ended answers for all):

Move money from the state’s share of the federal CARES Act to help replenish the UI trust fund.

Move money from the state general fund to help replenish the UI trust fund.

The state could take a federal loan to help replenish the trust fund (the downside being that employers would have to pay a surcharge if the loan isn’t paid back by the state in two years).

Reduce from 680 to something less the number of hours that individuals must work in a year to qualify for UI benefits (a proposal by Labor to make it easier for workers to qualify when work might be hard to come by).

Reduce the maximum benefit amount individuals could receive (WA State has one of if not the highest benefit amounts among the states).

Freeze or reduce the taxable wage amount (now $52,700) which has been growing about 6% per year in recent years.

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* 6. Do you have any other suggestions regarding the unemployment insurance system?

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* 7. Would you be willing to serve on an AGC UI Task Force to help develop and vet proposals that the Legislature might consider and meet via Zoom a couple times?

Yes (if so, please send an email to Jerry VanderWood at jvanderwood@agcwa.com)