This Act will continue for calendar year 2024 the temporary relief provided in calendar year 2023 to employers who pay unemployment tax assessments. It will continue to reduce new employer tax rates, hold constant overall employer tax rates from last calendar year, and reduce the maximum earned rate. This Act will also continue the temporary simplification of the tax rate schedules that are used to calculate unemployment assessments paid by employers. The Governor’s agreement to use federal pandemic funds to restore the pandemic-depleted Unemployment Trust Fund made the Unemployment Trust Fund sufficiently solvent and is allowing the Department to implement unemployment tax relief measures to Delaware employers for an additional one-year period for calendar year 2024. The Department estimates that these unemployment tax assessment changes will reduce the tax obligation of employers an estimated $50 million compared to the tax rates absent the temporary relief.
This Act also restructures the supplemental assessment that is currently collected from all employers, keeping it at the same rate of 0.2%, but depositing it in the Special Administration Fund instead of the UI Trust Fund. This Act expands the uses for the Special Administration Fund to include future technology needs of the Department and makes technical corrections to the administration provisions of the Special Administration Fund to align with current State Treasurer practices.

Statutes affected:
Original Text: 19.3166, 19.3348, 19.3350
Session Law: 19.3166, 19.3348, 19.3350