SB560

Senate Bill 560 proposes changes to the Arkansas Division of Workforce Services funding and contribution structures. It reduces the base unemployment insurance contribution rate for employers from 1.9% to 1.8%, effective January 1, 2026. The bill also updates the reserve ratio schedule used to determine employer contribution rates, generally lowering these rates across the board. Simultaneously, the bill increases the administrative assessment rate charged to employers from 0.1% to 0.2%, effective January 1, 2026. Revenue generated from this assessment is redirected to fund the Division of Workforce Services Unemployment Insurance Administration Fund and the Training Trust Fund. These changes aim to support administrative operations and provide expanded funding for skilled workforce training and development. The bill also formalizes the uses of the Training Trust Fund to include construction, grants, and personal services.