AMENDMENTS RELATING TO DEFINITION OF “COMPENSATION”.

SEC. 7101. AMENDMENTS RELATING TO DEFINITION OF “COMPENSATION”. (a) In General.—Section 1(i) is amended— (1) by inserting “(1) In General.—” after “(i)”; (2) by striking out “: Provided, however, That in computing” and all that follows through “1983, shall be recognized.” and inserting in lieu thereof “, except that in computing the compensation paid to any employee, no part of any month’s compensation in excess of the monthly compensation base (as defined in subdivision (2)) for any month shall be recognized.”; and (3) by adding at the end thereof the following new subdivision: “(2) Monthly Compensation Base.— “(A) In general.—For purposes of subdivision (1), the term ‘monthly compensation base’ means the amount— “(i) of $400 for calendar months before January 1, 1984, “(ii) of $600 for calendar months after December 31, 1983 and before January 1, 1989; and “(iii) computed under subparagraph (B) for months after December 31, 1988. “(B) Computation.— “(i) In general.—The amount of the monthly compensation base for each calendar year beginning after December 31, 1988, is the greater of— “(I) $600; or “(II) the amount, as rounded under clause (iii) if applicable, computed under the formula: 102 STAT. 3758 B=600(1+A−37,80056,700) “(ii) Meaning of symbols.—For the purposes of the formula in clause (i)— “(I) ‘B’ is the dollar amount of the monthly compensation base; and “(II) ‘A’ is the amount of the applicable base with respect to tier 1 taxes, for the calendar year for which the monthly compensation base is being computed, as determined under section 3231(e)(2) of the Internal Revenue Code of 1986. “(iii) Rounding rule.—If the monthly compensation base computed under this formula is not a multiple of $5, it shall be rounded to the nearest multiple of $5, with such rounding being upward in the event the amount computed is equidistant between two multiples of $5.”. (b) Conforming Amendment With Respect to Subsidiary Remuneration Rule.—Section 1(k) is amended by striking out “$1,500” and inserting in lieu thereof “an amount that is equal to 2.5 times the monthly compensation base for months in such base year as computed under section 1(i) of this Act”. (c) Conforming Amendment With Respect to Limitation on Taking Account of Money Remuneration.—Section 2(c) is amended by striking out “not in excess of $775 in any month shall be taken into account:” and inserting in lieu thereof “shall be taken into account that is not in excess of $775 in any month before 1989 and, in any month in a base year after 1988, is not in excess of an amount that bears the same ratio to $775 as the monthly compensation base for that year as computed under section 1(i) of this Act bears to $600:”. (d) Conforming Amendments With Respect to Required Compensation Amount.—Section 4(a–2)(i)(A) is amended by striking out the semicolon at the end and inserting in lieu thereof “and before 1989 or, if any part of such compensation is paid in a calendar year after 1988, not less than an amount that is equal to 2.5 times the monthly compensation base for months in such calendar year, as computed under section 1(i) of this Act;”. (e) Duty of Board To Make Certain Computations.—Section 12 is amended by adding at the end the following new subsection; “(r) Duty of Board To Make Certain Computations.— “(1) Compensation base.— On or before December 1, 1988, and on or before December 1 of each year thereafter, the Board shall compute— “(A) in accordance with section 1(i), the monthly compensation base which shall be applicable with respect to months in the next succeeding calendar year; and “(B) the amounts described in section 1(k), section 2(c), section 3, and section 4(a–2)(i)(A) that are related to changes in the monthly compensation base. “(2) Maximum daily benefit rate.—On or before June 1, 1989, and on or before June 1 of each year thereafter, the Board 102 STAT. 3759shall compute in accordance with section 2(a)(3) the maximum daily benefit rate which shall be applicable with respect to days of unemployment and days of sickness in registration periods beginning after June 30 of that year. “(3) Notice in federal register and to employers.—Not later than 10 days after each computation made under this subsection, the Board shall publish notice in the Federal Register and shall notify each employer and employee representative of the amount so computed.”. (f) Effective Date.—The amendments made by this section shall take effect upon the date of the enactment of this Act.