HB 4401
To modify the calculation of the taxable wage base.
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- Passed House of Delegates
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill adjusts how West Virginia calculates the ‘taxable wage base’ used in determining unemployment benefits. Specifically, it changes the amount of remuneration considered when calculating this base, primarily by increasing the threshold for including remuneration in a worker’s taxable earnings. The bill aims to align the West Virginia calculation more closely with federal guidelines regarding taxable wages for unemployment compensation purposes. This change is intended to provide more consistent unemployment benefit calculations.
Key provisions
- Increases the taxable wage base from $8,500 to $9,500.
- Modifies the calculation of remuneration to include amounts equal to the taxable wage base under the federal Unemployment Tax Act.
- Clarifies that certain payments, such as retirement contributions, insurance payments, and payments to trusts, are excluded from the taxable wage base.
- Specifies that payments to individuals over 65 after a certain period are excluded.
- Excludes payments made to individuals for training or service in the armed forces.
- Excludes vacation, severance, and savings plans earned prior to unemployment.
- Establishes rules for determining the cash value of remuneration not paid in cash.
- Sets the effective date for the changes to July 1, 2024.
Who is affected
- Unemployed workers in West Virginia
- Employers in West Virginia
- The West Virginia Division of Workforce Solutions
- The West Virginia Legislature
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