SB289
To Amend The Division Of Workforce Services Law; And To Amend An Exclusion From The Definition Of "employment" Within The Division Of Workforce Services Law.
Last Action (May 1, 2023): Sine Die adjournment
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AI-Generated Summary
Senate Bill 289 amends the Division of Workforce Services Law regarding the definition of 'employment' for unemployment insurance tax purposes. Specifically, it clarifies that personal care services performed for certain certified home- and community-based health services providers are excluded from the legal definition of employment. This exclusion does not apply if the provider is a state or local government entity, a federally recognized Indian tribe, or a specific nonprofit organization. The bill applies this amendment retroactively to January 1, 2010. Furthermore, the legislation includes a sunset clause, stipulating that this specific exclusion will expire on September 30, 2023.
Potential Impact Analysis
Who Might Benefit?
Private, for-profit home- and community-based health services providers are the primary beneficiaries, as the bill clarifies their exemption from certain unemployment insurance tax obligations related to personal care services. These entities benefit from the retroactive application of this rule, which may limit or resolve previous tax liabilities.
Who Might Suffer?
The primary entity negatively impacted is the Arkansas Division of Workforce Services, which may face a reduction in unemployment insurance tax revenue due to the exclusion of these services from the definition of employment. Additionally, workers performing personal care services for these private providers may be negatively affected, as their service hours may not qualify toward eligibility for state unemployment benefits during the covered period.
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