Sec. 1. 26 MRSA §1043, sub-§19, ķA, as amended by PL 1999, c. 464, §1, is further amended to read:

A. For purposes of section 1221, the term "wages" does not include remuneration that exceeds the first $7,000 through December 31, 1999, and on and after January 1, 2000, the first $12,000 wage base that is paid in a calendar year to an individual by an employer or the employer's predecessor for employment during any calendar year, unless that remuneration is subject to a tax under a federal law imposing a tax against which credit may be taken for contributions required to be paid into a state unemployment fund. The wages of an individual for employment with an employer Wages are subject to this exception whether earned in this State or any other state when the employer-employee relationship is between the same legal entities;.

The wage base through December 31, 1999 is $7,000.__On and after January 1, 2000, until later adjusted, the wage base is $12,000.__On January 1, 2006, and on the first day of every 5th year thereafter, the wage base then in effect must be adjusted by multiplying the wage base times a fraction formed as follows.__The numerator is the State's average weekly wage calculated as of one year before the date of adjustment.__The denominator is the State's average weekly wage calculated as of 6 years before the date of adjustment.__ The resulting figure, rounded to the nearest $500, is the new wage base for the ensuing 5-year period until the next adjustment is due;

SUMMARY

This bill amends the definition of "wages" and also establishes a new wage base for the unemployment compensation system that will apply to wages beginning on January 1, 2006.