HB 1463-FN - AS INTRODUCED

2002 SESSION

02-2459

08/09

HOUSE BILL 1463-FN

AN ACT relative to sole proprietors under the unemployment compensation law.

SPONSORS: Rep. M. Fuller Clark, Rock 36

COMMITTEE: Labor, Industrial and Rehabilitative Services

ANALYSIS

This bill exempts owners of a business from the definition of "employer" under the unemployment compensation law.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

02-2459

08/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Two

AN ACT relative to sole proprietors under the unemployment compensation law.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Definition; Employer. Amend RSA 282-A:8, I to read as follows:

I.(a) Any employing unit which:

[(a)] (1) For some portion of a day in each of 20 different calendar weeks in either the current or preceding calendar year, whether or not such weeks are or were consecutive, has or had in employment within a calendar year one or more individuals, irrespective of whether the same individual was in employment in each such day; or

[(b)] (2) In any calendar quarter in either the current or preceding calendar year caused gross wages for services in employment to be paid or payable in the amount of $1,500 or more;

(b) The provisions of subparagraph (a) shall not apply to an owner of a business, even if that owner may serve the business as an employee.

2 Effective Date. This act shall take effect 60 days after its passage.

LBAO

02-2459

Revised 2/21/02

HB 1463 FISCAL NOTE

AN ACT relative to sole proprietors under the unemployment compensation law.

FISCAL IMPACT:

The Department of Employment Security states this bill will have no fiscal impact on state, county and local revenue or expenditures.

METHODOLOGY:

The Department states this bill will have no fiscal impact on state, county or local entities, since those entities are not subject to the Federal Unemployment Tax Act (FUTA). Corporations (for-profit and not-for-profit), however, would be impacted by this bill and could lose the 5.4% credit against FUTA that currently exists.