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Show Hew State Unemployment Insurance Program Effective First Veek in July The new provisions recently passed by the Legislature changing chang-ing the Utah unemployment insurance in-surance program are not effective effec-tive until the week beginning July 3, 1955, announced Curtis P. Harding, Administrator of the Utah Department of Employment Security. In addition to the 150,000 workers work-ers In private industry directly covered by the Employment Security Se-curity Act, upwards of 30,000 federal workers are also affected affect-ed by the new law beginning next July. A unique feature of the new law,-which Is In accord with re-( commendations of a special com i mlttee composed of equal members mem-bers or labor and management,1 provides that the top weekly un- J employment benefit shall change from year to year at a rate equal . to one-half of the average week-1 ly wage of Insured workers. In-, asmuch as average wages are, approximately $66.00 at the pre- j sent time, this means an Increase In the top weekly benefit amount : from the present $27.50 to $33.00 beginning next July, according to Mr. Harding, and thereafter! annual adjustments up or down depending on what happens to the average weekly wage of all workers. In no event Is an unemployed un-employed worker paid more than approximately one-half of his full time weekly wage up to the flexible ceiling, stated Mr. Harding. A less liberal feature of the new law curtails the length of time that seasonal workers may draw unemployment benefits; however, the new law retains the maximum period of twenty-six twenty-six weeks' possible duration of unemployment benefits for steady workers. A far-reaching change of Interest In-terest to employers Is the change In payroll contrlbultlon rates effective ef-fective January 1, 1955, stated Mr. Harding. This provides a greater spread of "experience rates" tanging from a minimum tax of seven-tenths of one per cent for the most stable employ ers to 2.0 per cent of subject payrolls pay-rolls for the least stable. This compares with the present law which is effective throughout 1955 carrying a spred of reduced rates beginning at nine-tenths of one per cent to 1.5 per cent of subject payrolls. . An actuarial study disclosed the fact that the Utah unemployment unem-ployment Insurance reserve fund was in a sound financial condition con-dition amounting to approximately approxi-mately $34,000,000 as of the end of December, 1954. During the year $6,000,000 was paid out to eligible unemployed workers and $4,000,000 was received In income in-come from the employer flnanc-payroll flnanc-payroll tax averaging about 1.1 per cent of subject payrolls. |