New Employer UI and Construction Employer Tax Rates for 2022

 

FOR IMMEDIATE RELEASE

 

WILMINGTON, DE – The Delaware Department of Labor (DOL) is announcing the new Employer Unemployment Insurance and new Construction employer tax rates for 2022, effective January 1, 2022.

  • New Employer and new Construction employer rates are maintained at 2020 levels
  • Establish 2022 merit rate at lower of 2020, 2021, or 2022 tax rate, except for delinquency rate (conditions apply)
  • Authorization for DOL to issue credits to employers and reduce the delinquency tax rate to correct administrative errors or address fraudulent claims charged to employers (conditions apply, including being current on filing all quarterly reports)
  • Establish 2022 taxable wage base at $14,500 (down from $16,500 in 2021)

 

COVID related and fraudulent claims, as well as delays in receiving and processing employers’ 2020 and 2021 tax payments impacted employer tax rates in 2021.

 

The Secretary, with the unanimous support of the Unemployment Insurance Advisory Council, took these actions to prevent the issues from persisting into 2022. Lowering the taxable wage base to $14,500 is estimated to save employers more than $11 million in 2022.

 

These actions were made possible by the Governor and General Assembly’s investment of nearly $250 million of the State’s Coronavirus Relief Funds to the Unemployment Insurance trust fund.

 

“The COVID-19 pandemic has been an unprecedented challenge for Delaware employers,” said DOL Secretary Karryl Hubbard. “These actions reaffirm our commitment to maintain UI taxes at the lowest levels possible, allowing employers to reinvest that money in their workers and infrastructure in order to restore their companies and the Delaware economy to pre-pandemic levels.”

 

The Delaware Department of Labor connects people to jobs, resources, monetary benefits, workplace protections, and labor market information to promote financial independence, workplace justice, and a strong economy. The department is made up of four main divisions: Unemployment Insurance, Employment & Training, Industrial Affairs, and Vocational Rehabilitation.

 

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Media Contact:
Alejandro Bodipo-Memba
DOL Communications
302-761-8002


Delaware Department of Labor Releases Guidelines on 13 Week Extension of Unemployment Benefits

WILMINGTON, Del. – FRIDAY APRIL 17, 2020 – The federal Coronavirus Aid, Relief, and Economic Stability Act (CARES Act) created a new program called Pandemic Emergency Unemployment Compensation (PEUC), which provides 13 weeks of extended unemployment benefits to eligible workers.

How and when can I apply for the 13 week extension of unemployment benefits?
If your benefits exhausted or expired between the dates of July 1, 2019 and Saturday, April 18, 2020, you will need to apply for the 13-week extension after 8:00 AM on Sunday April 19, 2020 by visiting ui.delawareworks.com and completing an application for benefits

If you are currently receiving unemployment insurance benefits and they will not exhaust or expire until after Sunday April 19, 2020, you do not have to take any action. When your current benefits have been exhausted, your additional 13-week extension will automatically begin.

What you need to know
Beginning March 29, 2020, for any week you are eligible to receive PEUC benefits, you will also be eligible for the $600 additional federal payment.

Under the CARES Act, you will continue to receive your same unemployment benefit amount during the 13 week extension. That amount will not be recalculated. You will also receive the $600 per week of additional federal compensation.

CARES ACT BACKGROUND
Congress recently passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). This law includes several programs to expand eligibility for unemployment benefits during this health emergency.
These changes include:

$600 per week additional compensation for people receiving unemployment benefits.

An extension of unemployment benefits for up to 13 weeks.

Provides eligibility for workers who typically do not qualify for traditional unemployment insurance, such as: independent contractors, self-employed individuals, employees of faith based non-profits, and others) View the guidelines here.

Delaware was one of the first states in the nation to begin implementation of the CARES Act. Disbursement of the $600 per week additional federal benefit to Delaware unemployment insurance recipients began during the week of April 5th; one week after passage of the law.

To view our most updated frequently asked questions (FAQ’s) regarding unemployment insurance, and to be notified when the application for benefits is available for self-employed individuals and independent contractors in Delaware, text uifacts to 555888.

Additional resources are available on our websites at dol.delaware.gov or ui.delawareworks.com. You can also call our offices at 302-761-8446.
Call hold time is longer than usual. For a quicker response please email uiclaims@delaware.gov. Include your full name, including middle initial, contact information and claim number.

To process an initial claim for unemployment benefits please visit ui.delawareworks.com

Delawareans with questions about coronavirus [COVID-19] or their exposure risk can call the Division of Public Health’s Coronavirus Call Center at 1-866-408-1899 or 711 for people who are hearing impaired from 8:30 a.m. to 8:00 p.m. Monday through Friday, and 10 a.m. to 4 p.m. Saturday and Sunday, or email DPHCall@delaware.gov . For the latest on Delaware’s response, go to de.gov/coronavirus.


DOL Releases Guidance for Independent Contractors and Self-employed Seeking Unemployment Through the CARES Act

[WILMINGTON, DE] THURSDAY APRIL 16, 2020 – The Coronavirus Aid, Relief, and Economic Security (CARES) Act recently passed by the United States Congress and signed into law on March 27th provides unemployment assistance to independent contractors and those self-employed who have been affected by the Coronavirus.

Most state’s unemployment systems determine eligibility and process payments for workers whose wages are reported by their employers and verified through the Division of Unemployment Insurance (DUI). In order to begin processing claims for this new category of eligible individuals and prevent fraud, abuse and identity theft, the Federal US Department of Labor requires that states design new systems to pay benefits to independent contractors/self-employed and ensure the validity of their claims.

Delaware Department of Labor (DOL) is currently working with a vendor to design and test new technologies that will integrate with our existing benefits claims system. This technology will allow the Division of Unemployment Insurance (DUI) to verify earnings reported to the IRS and determine the eligibility of independent contractors and the self-employed to apply for benefits under the (CARES) Act.

We anticipate that these workers will be able to apply through this new system within 3-6 weeks. We will provide more details regarding implementation and how to apply on our website next week.

“The hardship that the coronavirus pandemic has placed on Delaware workers is unprecedented. These workers will receive the much-needed assistance provided to them under the CARES Act. We are working around the clock to make that happen; Hopefully, ahead of schedule” said Cerron Cade, Secretary of the Delaware Department of Labor.

Once the system is ready to receive applications from those who are self-employed or are independent contractors, DOL will require specific documentation available at the time you submit your application online. The documents you will need are as follows:

  • Driver license or State issued Identification
  • Your last year’s income tax statement or quarterly earnings statement
  • State of Delaware Business License number
  • Current bank account number and routing number

To date, DOL has processed and paid 70% of initial claims for benefits submitted to their offices since March 1st and is currently paying more than $30 million in benefits to affected workers each week. The agency has received more than 60,000 claims in 4 weeks; nearly double the total number of claims received in 2019.

To view our most updated frequently asked questions (FAQ’s) regarding unemployment insurance, and to be notified when the application for benefits is available for self-employed individuals and independent contractors in Delaware, text uifacts to 555888.

Additional resources are available on our websites at dol.delaware.gov or ui.delawareworks.com. You can also call our offices at 302-761-8446. Call hold time is longer than usual. For a quicker response please email uiclaims@delaware.gov. Include your full name, including middle initial, contact information and claim number.

To process an initial claim for unemployment benefits please visit ui.delawareworks.com

Delawareans with questions about coronavirus [COVID-19] or their exposure risk can call the Division of Public Health’s Coronavirus Call Center at 1-866-408-1899 or 711 for people who are hearing impaired from 8:30 a.m. to 8:00 p.m. Monday through Friday, and 10 a.m. to 4 p.m. Saturday and Sunday, or email DPHCall@delaware.gov. For the latest on Delaware’s response, go to de.gov/coronavirus.


The Delaware Department of Labor Expands Unemployment Benefits to Workers Affected by the COVID-19 Pandemic

In accordance with the Governor’s amended State of Emergency declaration, the Honorable Cerron Cade, Secretary of Labor for the State of Delaware has issued new guidelines to enhance the flexibility of Delaware’s unemployment insurance program to provide cash assistance to many Delaware workers whose employment has been impacted directly by coronavirus [COVID-19] and who would not typically qualify for benefits.

The new Unemployment Insurance guidelines to be issued by the Secretary of Labor are as follows:

  • Workers will be eligible to receive unemployment benefits if an employer needs to curtail or shut down operations temporarily because of the Governor’s State of Emergency declaration or the coronavirus outbreak.
  • A worker who has been ordered by a medical doctor to self-quarantine as a result, or due to risk of exposure to coronavirus COVID-19 will be eligible to receive unemployment benefits.
  • Parents or guardians who have been forced to quit or take unpaid leave from their jobs to care for children due to the Governor’s emergency closure of schools will be eligible for benefits.
  • Workers who have been forced to quit or take unpaid leave to care for a loved one who has contracted coronavirus COVID-19 will be eligible for benefits.
  • If a worker falls ill to COVID-19 and is unable to work, they may be eligible for unemployment benefits.
  • Part-time workers may be eligible for benefits.
  • The definition of weekly work search requirements will expand to include a wide variety of activities that meet the requirement, unemployment insurance deadlines may be modified for mandatory appointments, and applying for training programs or mandatory re-employment service appointments and workshops.

Although DOL offices will be closed to public access during this State of Emergency, the Delaware Department of Labor remains operational and offers the ability for Delawareans to file for unemployment benefits online at the following link: https://ui.delawareworks.com/ Questions can answered via email at uiclaims@delaware.gov or via at 302-761-8446.

A list of other agency services and contact information is available on our website at https://dol.delaware.gov. You may also download a copy of this resource guide here: https://laborfiles.delaware.gov/c19/dolresources.pdf

Delawareans with questions about coronavirus [COVID-19] or their exposure risk can call the Division of Public Health’s Coronavirus Call Center at 1-866-408-1899 or 711 for people who are hearing impaired from 8:30 a.m. to 8:00 p.m. Monday through Friday, and 10 a.m. to 4 p.m. Saturday and Sunday, or email DPHCall@delaware.gov. For the latest on Delaware’s response, go to de.gov/coronavirus.

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