Bill > HB2877

This bill establishes the "Unemployment Administration Adjustment Fund" within the state treasury, which will be funded by a new annual fee paid by employers and any state funds appropriated by the General Assembly. This fund is specifically designated for covering the costs of administering unemployment laws, and any money remaining at the end of a two-year period will not be returned to the general revenue fund. The bill also outlines that this fund cannot be used in a way that would reduce or replace federal funding for unemployment administration. Employers who are liable for unemployment contributions, and do not have a zero contribution rate, will be required to pay an annual fee equal to five-hundredths of one percent of their total taxable wages from the previous fiscal year. However, this fee will not be applied in the following calendar year if the Unemployment Administration Adjustment Fund has a balance of $40 million or more on September 30th, or if the average balance of the unemployment compensation trust fund over the preceding four quarters is less than $450 million. Employers will be notified of their fee amount by March 31st each year, and it will be considered late 30 days after that, with collection following existing procedures for delinquent contributions. Importantly, the amount of regular unemployment contributions due from an employer in the first quarter of each calendar year will be reduced by the amount of this new unemployment administration adjustment fee, but not below zero.

Government Affairs

https://house.mo.gov/Bill.aspx?bill=HB2877&year=2026&code=R