Unemployment insurance: contribution rates.

Existing law requires every employer, with specified exceptions, to pay contributions to the Unemployment Fund at specified rates determined according to 7 schedules. This bill would, for calendar year 2021, provide that an employer's contribution rate shall not exceed the rate that was in effect for that employer in calendar year 2020, as specified. Existing law requires individuals who qualify as employers or who are self-employed, and who elect that their services be deemed employment, to pay contributions to the Unemployment Fund at a specified rate. This bill would, for calendar year 2021, provide that the contribution rate for an individual who elects that their services be deemed employment shall not exceed the rate that was in effect for that individual in calendar year 2020. Existing law requires employers to pay into the Unemployment Fund contributions at an emergency solvency surcharge rate when the balance of the fund is less than 0.6% of wages in employment, as defined. This bill would, for calendar year 2021, suspend the payment of those employer contributions at an emergency solvency surcharge rate. This bill would declare that it is to take effect immediately as an urgency statute.