REPORT TITLE:
Unemployment Comp


DESCRIPTION:
Excludes payments to owner-employees from the wage base upon
which contributions must be made into the unemployment
compensation fund.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           1204
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO THE EMPLOYMENT SECURITY LAW.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Section 383-11, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "383-11  Excluded payments."Wages" does not include:
 
 4      (1)  The amount of any payment (including any amount paid by
 
 5           an employing unit for insurance or annuities, or into a
 
 6           fund, to provide, for any such payment) to, or on
 
 7           behalf of, an individual or any of the individual's
 
 8           dependents under a plan or system established by an
 
 9           employing unit which makes provision generally for
 
10           individuals performing service for it (or for such
 
11           individuals generally and their dependents) or for a
 
12           class or classes of such individuals (or for a class or
 
13           classes of such individuals and their dependents), on
 
14           account of (A) retirement, or (B) sickness or accident
 
15           disability, or (C) medical or hospitalization expenses
 
16           in connection with sickness or accident disability, or
 
17           (D) death;
 
18      (2)  The amount of any payment by an employing unit to an
 
19           individual performing service for it (including any
 

 
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                                     S.B. NO.           1204
                                                        
                                                        

 
 1           amount paid by an employing unit for insurance or
 
 2           annuities or into a fund, to provide for any such
 
 3           payment) on account of retirement;
 
 4      (3)  The amount of any payment on account of sickness or
 
 5           accident disability, or medical or hospitalization
 
 6           expenses in connection with sickness or accident
 
 7           disability, by an employing unit to, or on behalf of,
 
 8           an individual performing services for it after the
 
 9           expiration of six calendar months following the last
 
10           calendar month in which the individual performed
 
11           services for the employing unit;
 
12      (4)  The amount of any payment by an employing unit to, or
 
13           on behalf of, an individual performing services for it
 
14           or the individual's beneficiary (A) from or to a trust
 
15           described in section 401(a) and exempt from tax under
 
16           section 501(a) of the federal Internal Revenue Code at
 
17           the time of the payment unless the payment is made to
 
18           an individual performing services for the trust as
 
19           remuneration for such services and not as a beneficiary
 
20           of the trust, or (B) under or to an annuity plan which,
 
21           at the time of the payments, meets the requirements of
 
22           section 401(a)(3), (4), (5), and (6) of the federal
 
23           Internal Revenue Code;
 

 
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                                     S.B. NO.           1204
                                                        
                                                        

 
 1      (5)  The amount of any payment by an employing unit (without
 
 2           deduction from the remuneration of the individual in
 
 3           its employ) of the tax imposed upon an individual in
 
 4           its employ under section 3101 of the federal Internal
 
 5           Revenue Code;
 
 6      (6)  Remuneration paid in any medium other than cash to an
 
 7           individual for service not in the course of the
 
 8           employing unit's trade or business;
 
 9      (7)  The amount of any payment (other than vacation or sick
 
10           pay) to an individual after the month in which the
 
11           individual attains the age of sixty-five, if the
 
12           individual did not perform services for the employing
 
13           unit in the period for which such payment is made;
 
14      (8)  The amount of any payment (not required under any
 
15           contract of hire) to an individual with respect to the
 
16           individual's period of training or service in the armed
 
17           forces of the United States by an employing unit by
 
18           which the individual was formerly employed;
 
19      (9)  The amount of any payment (including any amount paid by
 
20           an employer into a fund to provide for such payment)
 
21           made after April 1, 1956, to or on behalf of an
 
22           employee under a written agreement, contract, trust
 
23           arrangement, or other instrument, which makes provision
 

 
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                                     S.B. NO.           1204
                                                        
                                                        

 
 1           for the employer's employees generally or for a class
 
 2           or group of the employer's employees, for the purpose
 
 3           of supplementing benefits paid under this chapter or
 
 4           providing benefits based on wages paid for excluded
 
 5           services[.]; and
 
 6     (10)  The amount of any payment by an employing unit to an
 
 7           owner-employee performing service for it."
 
 8      SECTION 2.  Statutory material to be repealed is bracketed.
 
 9 New statutory material is underscored.
 
10      SECTION 3.  This Act shall take effect upon its approval.
 
11 
 
12                           INTRODUCED BY:  _______________________