TOPEKA, Kan. – -Recent changes to unemployment insurance law in Kansas provides an annual write-off for employers who owe more than they’ve contributed to the unemployment trust fund and help to negative account balance employers, along with other updates.
Unemployment insurance in Kansas provides financial support for job-seekers who lost work through no fault of their own.
“I think employers will see a very positive impact. 97% of employers are going to receive immediate tax savings.” said William Wilk, Senior Director of Government Affairs of the Kansas Chamber of Commerce.
Wilk said he expects employers to welcome the changes.
“Employers are going to receive immediate savings. It gives negative balance employers a fresh start to the unemployment insurance system. Our funds should remain the same and remain stable,” Wilk said.
Phillip Hayes, Vice President of The Arnold Group said employers in Kansas will see significant savings.
“We’re going to have about 29,000 employers that will have a 0% tax burden next year for state unemployment taxes. But beyond that there’s another 28,000 that will see a decrease ranging from half a percent to 95% drop in their tax burden next year from, from a whole dollar standpoint,” Hayes said.
Hayes indicated he expects around $320 million in savings in the next four years.
Under the bill, workers can receive unemployment benefits for up to eight weeks. If needed, the Secretary of the Kansas Department of Labor can grant an extra eight weeks of benefits, but only if the company has completed all its paperwork, paid what it owes, and mainly works in making and delivering concrete or building transportation-related structures and are considered weather-related employers.
Hayes also said another impactful change in eligibility in the law will allow certain school bus drivers to participate in a work share agreement. This will keep employees attached to their jobs during possible hour cuts.
Another change in the law deals with “interview ghosting,” when a candidate receiving benefits and required to show proof of applying for jobs doesn’t show up for a scheduled interview. The new law says employers have up to ten business days to provide a notice that a claimant refuses to return to the workplace, or rejects to accept an offer for a suitable work-reliant cause.
“Job candidates will schedule job interviews with employers, and there’s been no repercussions if somebody doesn’t cancel an interview or doesn’t show up. So once the new unemployment system comes up, they’re going to build in a provision mandated in the statute that the Department of Labor will allow a portal or a provision for employers to report job ghosting or interview ghosting,” Hayes said.
Hayes said he hopes this is one of the last major unemployment insurance reforms in Kansas, but he expects there to be reevaluations of the law shortly after the turn of the decade to see how everything is playing out, and to see if any further adjustments need to be made.
To qualify for unemployment benefits, workers must be physically able to work, be available for work, and actively seek employment.
When filing an initial claim, users are required to file up to 11 documents such as personal identification numbers as well as proof of employers and working history. Non-US citizens, citizens on active duty in the military, and federal employees must file additional documents for unemployment insurance.
Funding for the unemployment insurance program is financed through both federal and state taxes on employers that provide cash benefits to eligible workers.
The fund is taxed on the first $14,000 of wages that are paid to every employee.
The new law was approved by the Kansas Senate on April 4th with a vote of 38-1 and approved the next day in the Kansas House of Representatives with a vote of 123-0. Kansas Governor Laura Kelly signed the law on April 24.
Image courtesy of the Kansas Department of Labor.
