Employers Avoid Charges To Unemployment Tax Accounts

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Tennessee Department of Labor and Workforce Development Commissioner Jeff McCord has notified the leadership of the Unemployment Insurance division of changes to Tennessee law that allows employers across the state to avoid charges against their unemployment tax accounts.

Pursuant to Senate Bill 2520, which was signed into law by Governor Bill Lee on June 22, 2020, the Unemployment Insurance Division is directed to suspend the provisions of T.C.A. 50-7-403(d) relating to base period contributory employers.

The employer tax account of any contributory employer in a claimant's base period for any unemployment benefits paid to a claimant as a result of the COVID-19 pandemic, and its effects, for the period of March 15, 2020, through July 31, 2020, shall be harmless and not charged.

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