§ 8-76-110 — Financing benefits paid to employees of nonprofit organizations
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(1) Benefits paid to employees of nonprofit organizations shall be financed in
accordance with the provisions of this section. For the purpose of this section, a
nonprofit organization is an organization or group of organizations described in
section 501 (c)(3) of the federal Internal Revenue Code of 1986, as amended,
which are exempt from income tax under section 501 (a) of such code.
(2) Liability for premiums and election of reimbursement. (a) Any nonprofit
organization that, pursuant to section 8-70-113 (1)(c), is or becomes subject to
articles 70 to 82 of this title shall pay premiums under the provisions of section 8-76-101, unless it elects, in accordance with this subsection (2), to pay to the division
for the unemployment compensation fund an amount equal to the amount of
regular benefits and one-half of the extended benefits paid, that is attributable to
service in the employ of such nonprofit organization, to individuals for weeks of
unemployment that begin during the effective period of such election.
(b) (Deleted by amendment, L. 2009, (HB 09-1363), ch. 363, p. 1897, � 18,
effective July 1, 2009.)
(c) Any nonprofit organization that becomes subject to articles 70 to 82 of
this title may elect to become liable for payments in lieu of premiums for a period of
not less than the calendar year within which such subjection begins by filing a
written notice of its election with the division not later than thirty days immediately
following the date of the determination of such subjection. Any nonprofit
organization that elects to make payments in lieu of premiums into the
unemployment compensation fund as provided in this paragraph (c) shall not be
liable to make such payments with respect to the benefits paid to any individual
whose base period wages include wages for previously uncovered services as
defined in section 8-70-141 (1)(d) to the extent that the unemployment
compensation fund is reimbursed for such benefits pursuant to section 121 of Public
Law 94-566.
(d) (Deleted by amendment, L. 2009, (HB 09-1363), ch. 363, p.1897, � 18,
effective July 1, 2009.)
(e) Any nonprofit organization that makes an election in accordance with
paragraph (c) of this subsection (2) will continue to be liable for payments in lieu of
premiums until it files with the division a written notice terminating its election not
later than thirty days prior to the beginning of the calendar year for which such
termination is first effective.
(f) Any nonprofit organization that pays premiums under articles 70 to 82 of
this title may change to a reimbursing basis by filing with the division not later than
thirty days prior to the beginning of any calendar year a written notice of election to
become liable for payments in lieu of premiums. Such election shall not be
terminable by the organization for that and the next year. Any organization making
such an election remains liable for the payment of all charges to its account and all
premiums and surcharges due the division, and past due premiums and surcharges
are subject to all interest and penalties as provided in articles 70 to 82 of this title.
(g) The division may for good cause extend the period within which a notice
of election, or a notice of termination, must be filed and may permit an election to
be retroactive.
(h) The division, in accordance with such rules as it may prescribe, shall
notify each nonprofit organization of any determination that it may make of the
status of the organization as an employer and of the effective date of any election
and of any termination of such election.
(i) Notwithstanding any other provisions of articles 70 to 82 of this title, any
nonprofit organization that, prior to January 1, 1969, paid premiums required by
articles 70 to 82 of this title and that elects, pursuant to paragraph (d) of this
subsection (2) as it existed prior to its repeal in 2009, to make payments in lieu of
premiums shall not be required to make any such payment on account of any
regular or extended benefits paid and attributable to wages paid for service
performed in its employ for weeks of unemployment that begin on or after the
effective date of such election until the total amount of such benefits equals the
amount by which the premiums paid by such organization with respect to a period
before such election exceed benefits paid for the same period and charged to the
experience rating account of such organization, as of the effective date of such
election.
(3) Reimbursement payments. (a) Payments in lieu of premiums shall be
made in accordance with the provisions of this subsection (3).
(b) At the end of each calendar quarter, the division shall bill each nonprofit
organization, or group of such organizations, that has elected to make payments in
lieu of premiums for an amount equal to the full amount of regular benefits plus
one-half of the amount of extended benefits paid during such quarter or other
prescribed period that is attributable to service in the employ of such organization.
(c) Payment of any bill rendered under paragraph (b) of this subsection (3)
shall be made not later than thirty days after such bill was mailed to the last-known
address of the nonprofit organization or was otherwise delivered to it, unless there
has been an application for review and redetermination in accordance with
paragraph (e) of this subsection (3).
(d) Payments made by any nonprofit organization under the provisions of this
subsection (3) shall not be deducted or deductible, in whole or in part, from the
remuneration of individuals in the employ of the organization.
(e) The amount due specified in any bill from the division shall be conclusive
on the organization unless, not later than fifteen days after the bill was mailed to its
last-known address or otherwise delivered to it, the organization files an application
for redetermination by the division setting forth the grounds for such application.
The division shall promptly review and reconsider the items specified and shall
thereafter issue a redetermination in any case in which such application for
redetermination has been filed. The amount due on the specified items in such
redetermination shall become due and payable not later than thirty days following
the date of mailing of the redetermination. All other charges specified on the
original bill are due and payable within thirty days as provided by paragraph (c) of
this subsection (3).
(f) Past-due payments of amounts in lieu of premiums shall be subject to the
same interest and penalties that, pursuant to sections 8-79-101 and 8-79-104, apply
to past-due premiums and surcharges.
(4) Provision of bond or other security. (a) In the discretion of the division,
any nonprofit organization that elects to become liable for payments in lieu of
premiums shall be required, within fifteen days after the effective date of its
election, to execute and file with the division a surety bond approved by the
division, or it may elect instead to deposit with the division money or securities. The
amount of such bond or deposit shall be determined in accordance with the
provisions of this subsection (4).
(b) The amount of bond or deposit required by this subsection (4) shall be
equal to three times the sum of the amount of regular benefits plus one-half the
extended benefits paid, if any, that are attributable to service in the employ of the
nonprofit organization during the previous calendar year or the sum of said
payments during the three previous calendar years, whichever is greater, but shall
not exceed three and six-tenths percent nor be less than one-tenth of one percent
of the total covered payroll of such organization for the preceding calendar year. If
the employer has not been subject to articles 70 to 82 of this title for a sufficient
period of time to acquire three calendar years' experience, then the bond shall be
an amount computed by multiplying the total covered payroll for the previous
calendar year, or the equivalent thereof, by two and seven-tenths percent. Any
organization that, under the provisions of paragraph (i) of subsection (2) of this
section, is not required to make payments in lieu of premiums will not be required to
file a surety bond or make a surety deposit with the division as provided in this
paragraph (b) until such time as said organization is required to make payments in
lieu of premiums.
(c) Any bond deposited under this subsection (4) shall be in force for a period
of not less than two calendar years and shall be renewed with the approval of the
division, at such times as the division may prescribe, but not less frequently than at
two-year intervals as long as the organization continues to be liable for payments in
lieu of premiums. The division shall require such adjustments to be made in a
previously filed bond as it deems appropriate. If the bond is to be increased, the
adjusted bond shall be filed by the organization within fifteen days after the date
notice of the required adjustment was mailed or otherwise delivered to it. Failure by
any organization covered by such bond to pay the full amount of payments in lieu of
premiums when due, together with any applicable interest and penalties provided
for in paragraph (f) of subsection (3) of this section, shall render the surety liable on
said bond to the extent of the bond, as though the surety were such organization.
(d) Any deposit of money or securities in accordance with this subsection (4)
shall be retained by the division in an escrow account until liability under the
election is terminated, at which time it shall be returned to the organization, less
any deductions as provided in this subsection (4). The division may deduct from the
money deposited under this paragraph (d) by a nonprofit organization or sell the
securities a nonprofit organization has so deposited to the extent necessary to
satisfy any due and unpaid payments in lieu of premiums and any applicable
interest and penalties provided for in paragraph (f) of subsection (3) of this section.
The division shall require the organization, within fifteen days following any
deduction from a money deposit or sale of deposited securities under the provisions
of this paragraph (d), to deposit sufficient additional money or securities to make
whole the organization's deposit at the prior level. Any cash remaining from the sale
of such securities shall be a part of the organization's escrow account. The division
may, at any time, review the adequacy of the deposit made by any organization. If,
as a result of such review, the division determines that an adjustment is necessary,
it shall require the organization to make an additional deposit within fifteen days
after written notice of its determination or shall return to it such portion of the
deposit as it no longer considers necessary, whichever action is appropriate.
Disposition of income from securities held in escrow shall be governed by the
applicable provisions of state law.
(e) If any nonprofit organization fails to file a bond or make a deposit, or to
file a bond in an increased amount or to increase or make whole the amount of a
previously made deposit, as provided under this subsection (4), the division may
terminate the organization's election to make payments in lieu of premiums, and the
termination shall continue for not less than the four-consecutive-calendar-quarter
period beginning with the quarter in which the termination becomes effective, but
the division may, for good cause, extend the applicable filing, deposit, or
adjustment period by not more than fifteen days.
(f) If any nonprofit organization is delinquent in making payments in lieu of
premiums as required under subsection (2) of this section, the division may
terminate the organization's election to make payments in lieu of premiums as of
the beginning of the next calendar year, and the termination shall be effective for
that and the next calendar year.
(5) Allocation of benefit costs. (a) A political subdivision that is liable for
payments in lieu of premiums shall pay to the division for the unemployment
compensation fund the full amount of all regular and extended benefits paid that
are attributable to service in the employ of such employer. A nonprofit organization
liable for payments in lieu of premiums shall pay to the division for the
unemployment compensation fund the amount of regular benefits plus the amount
of one-half of extended benefits paid that are attributable to service in the employ
of such employer. If benefits paid to an individual are based on wages paid by more
than one employer and one or more of such employers are liable for payments in
lieu of premiums, the amount payable to the fund by each employer that is liable for
such payments shall be determined in accordance with the provisions of paragraph
(b) or (c) of this subsection (5).
(b) If benefits paid to an individual are based on wages paid by one or more
employers that are liable for payments in lieu of premiums and on wages paid by
one or more employers that are liable for premiums, the amount of benefits payable
by each employer that is liable for payments in lieu of premiums shall be an amount
that bears the same ratio to the total benefits paid to the individual as the total
base period wages paid to the individual by such employer bear to the total base
period wages paid to the individual by all of his or her base period employers.
(c) If benefits paid to an individual are based on wages paid by two or more
employers that are liable for payments in lieu of premiums, the amount of benefits
payable by each such employer shall be an amount that bears the same ratio to the
total benefits paid to the individual as the total base period wages paid to the
individual by such employer bear to the total base period wages paid to the
individual by all of his or her base period employers.
(6) Group accounts. Two or more employers that are liable for payments in
lieu of premiums, in accordance with the provisions of subsection (2) of this section
and sections 8-76-108 and 8-76-109, may file a joint application with the division for
the establishment of a group account for the purpose of sharing the cost of
benefits paid that are attributable to service in the employ of such employers. Each
application shall identify and authorize a group representative to act as the group's
agent for the purposes of this subsection (6). Upon its approval of the application,
the division shall establish a group account for the employers effective as of the
beginning of the calendar quarter in which it receives the application and shall
notify the group's representative of the effective date of the account. The account
shall remain in effect for not less than two years and thereafter until terminated at
the discretion of the division or upon application by the group. Upon establishment
of the account, each member of the group shall be liable for payments in lieu of
premiums with respect to each calendar quarter in the amount that bears the same
ratio to the total benefits paid in that quarter that are attributable to service
performed in the employ of all members of the group as the total wages paid for
service in employment by the member in that quarter bear to the total wages paid
during that quarter for service performed in the employ of all members of the
group. The division shall prescribe rules as necessary with respect to applications
for establishment, maintenance, and termination of group accounts that are
authorized by this subsection (6); for addition of new members to, and withdrawal of
active members from, such accounts; and for the determination of the amounts that
are payable under this subsection (6) by members of the group and the time and
manner of such payments.
(7) Repealed.
(8) For the purposes of this section, applications, filings, and notices of
election shall be filed in such form and manner as the director of the division may
prescribe by rule, including in person, by mail, by telephone, or by electronic means.
Colorado § 8-76-110 (Financing benefits paid to employees of nonprofit organizations) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.