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January, 1985, Vol. 108, No. 1
Changes in unemployment insurance
legislation during 1984
The Deficit Reduction Act of 1984 made two changes affecting the unemployment compensation program which may require changes in State laws. The law included tips in the definition of wages for purposes of the Federal Unemployment Tax Act, and extended, for calendar years 1983 and 1984, the permitted exclusion from coverage of services performed on certain fishing boats.
During 1984, Oklahoma amended its law to allow deductions from unemployment benefits to pay for health insurance premiums if the individual elects to have the deductions made and the deductions are made under a program approved by the U.S. Secretary of Labor. Delaware established a program to provide counseling, training, and placement to dislocated workers. Massachusetts established a similar reemployment assistance program, which provides for counseling, placement, and training to employees terminated in plant closings and partial closings. Massachusetts also provided that an individual who is eligible for reemployment assistance benefits will also be eligible for health insurance benefits if the individual was, at the time of termination, covered by an individually purchased health insurance plan and is not able to be covered under any health insurance plan carried by a member of the family. Both of these programs are funded from general revenues and not from the State's unemployment insurance tax. Other actions taken by the States during the legislative year focused on efforts to either restore or maintain the solvency of their unemployment insurance programs.
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