(a) For calendar years prior to 2027, assessments shall accrue and become payable by each employer for each calendar year in which the employer is subject to this chapter, with respect to wages for employment. For calendar years 2027 and after, assessments shall accrue and become payable by each employer for each calendar year in which the employer is subject to this chapter, with respect to covered wages for employment. Such assessments shall become due and be paid by each employer to the Department for the Fund in accordance with such regulations as the Department prescribes. Except in the case of a false or fraudulent report with intent to evade tax, the amount of assessments imposed by this chapter shall be assessed within 4 years after the date of the filing of the report required by this chapter with respect to such assessments and no civil action or other proceeding to enforce the payment of such assessments shall be commenced more than 4 years after the date of the filing of such report.
(b) Liability for assessments and election of reimbursement:
(1) In lieu of assessments required of employers under § 3348 of this title, liable public employers defined in § 3302(12)(B) of this title shall pay into the Unemployment Compensation Fund an amount equal to the amount of the regular benefits and the extended benefits paid (whether paid due to immediate eligibility or eligibility upon separation from a subsequent employer) that is attributable to service in the employ of such liable public employer to individuals for weeks of unemployment which begin during the effective period of such election.
(2) For purposes of this section, employing units covered under § 3302(12)(B) of this title are considered liable public employers and shall be liable for reimbursement payments in lieu of assessments. Paragraphs (b)(4)a., b., c., d., e., f. and g. of this section shall apply to any liable public employer.
(3) Any nonprofit organization or group of organizations, described in § 501(c)(3) of the Internal Revenue Code [26 U.S.C. § 501(c)(3)] which is exempt from income tax under § 501(a) of such Code [26 U.S.C. § 501(a)], which, pursuant to § 3302(12)(C) of this title, is or becomes subject to this chapter on or after January 1, 1972, shall pay assessments under subsection (a) of this section and § 3348 of this title unless it elects, in accordance with this subsection, to pay to the Department for the Unemployment Compensation Fund an amount equal to the amount of the regular benefits and the first week of extended benefits paid and ½ of the extended benefits paid in subsequent weeks (whether paid due to immediate eligibility or eligibility upon separation from a subsequent employer), that is attributable to service in the employ of such nonprofit organization, to individuals for weeks of unemployment which begin during the effective period of such election.
a. Any nonprofit organization which is or becomes subject to this chapter on January 1, 1972, may elect to become liable for reimbursement payments in lieu of assessments for a period of not less than 1 taxable year beginning with January 1, 1972, provided it files with the Department a written notice of its election within the 30-day period immediately following such date.
b. Any nonprofit organization which becomes subject to this chapter after January 1, 1972, may elect to become liable for reimbursement payments in lieu of assessments for a period of not less than 12 months beginning with the date on which such subjectivity begins by filing a written notice of its election with this Department not later than 30 days immediately following the date of the determination of such subjectivity.
c. Any nonprofit organization which makes an election in accordance with paragraph (b)(3)a. or b. of this section will continue to be liable for reimbursement payments in lieu of assessments until it files with the Department a written notice terminating its election of reimbursement payments not later than 30 days prior to the beginning of the taxable year for which such termination shall first be effective.
The term “reimbursement payments in lieu of assessments” means the money payments to the State Unemployment Compensation Fund in lieu of assessments (required under § 3348 of this title) by:
1. Nonprofit organizations, which are equivalent to the amount of regular benefits and the first week of extended benefits paid and1/2of the extended benefits paid in subsequent weeks, which are attributable to service in the employ of such employers; and
2. Liable public employers, which are equivalent to the amount of regular benefits and extended benefits paid, which are attributable to service in the employ of such employers.
d. Any nonprofit organization which has been paying assessments under this chapter for a period subsequent to January 1, 1972, may change to a reimbursable basis by filing with the Department, not later than 30 days prior to the beginning of any taxable year, a written notice of election to become liable for reimbursement payments in lieu of assessments. Such election shall not be terminable by the organization for that and the next year.
e. The Department 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, but not any earlier than with respect to benefits paid after December 31, 1969.
f. The Department, in accordance with such regulations as it may prescribe, shall notify each nonprofit organization of any determination which the Department may make of the status of such nonprofit organization as an employer and of the effective date of any election which it makes and of any termination of such election. Such determinations shall be subject to reconsideration, appeal and review in accordance with § 3344 of this title.
(4) a. If benefits paid an individual are based on wages paid by 1 or more employers that are liable for reimbursement payments in lieu of assessments and on wages paid by 1 or more employers liable for assessments under § 3348 of this title, the amount of benefits reimbursable by each employer liable for reimbursement payments to the Fund shall be the amount which 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 the individual’s base period employers.
b. If benefits paid an individual are based on wages paid by 2 or more employers liable for reimbursement payments in lieu of assessments, the amount of benefits reimbursable by each such employer to the Fund shall be an amount which 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 the individual’s base period employers.
c. At the end of each calendar quarter, or at the end of any other period as determined by the Department, the Department shall bill each nonprofit organization (or group of such organizations) which has elected to make payments in lieu of assessments for an amount equal to the full amount of regular benefits and the first week of extended benefits paid plus ½ of the amount of extended benefits paid in subsequent weeks during such quarter or other prescribed period that is attributable to service in the employ of such organization.
d. Payment of any bill rendered under paragraph (b)(4)c. of this section shall be made not later than 30 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 (b)(4)f. of this section.
e. Payments made by any nonprofit organization under this paragraph shall not be deducted or deductible, in whole or in part, from the remuneration of individuals in the employ of the organization.
f. The amount due specified in any bill from the Department shall be conclusive on the organization unless, not later than 15 days after the bill was mailed to its last known address or otherwise delivered to it, the organization files an application for redetermination setting forth the grounds for such application. The Department shall promptly review and reconsider the amount due specified in the bill and shall thereafter issue a redetermination in any case in which such application for redetermination has been filed. Any such redetermination shall be conclusive on the organization unless, not later than 15 days after the redetermination was mailed to its last known address or otherwise delivered to it, the organization files an appeal to the Board setting forth the grounds for appeal. Proceedings on appeal to the Board from the amount of a bill rendered under this subsection or a redetermination of such amount shall be in accordance with § 3344(b) of this title and the decision of the Board shall be subject to § 3344(c) of this title.
g. Past due reimbursement payments in lieu of assessments shall be subject to the same interest and penalties that, pursuant to § 3357 of this title, apply to past due assessments.
(5) Notwithstanding any other provisions of paragraph (b)(3) of this section, any nonprofit organization that, prior to January 1, 1969, paid assessments required by subsection (a) of this section and pursuant to paragraph (b)(3) of this section elects, within 30 days after June 21, 1971, to make payments in lieu of assessments shall not be required to make such payment on account of any regular or extended benefits paid, on the basis of wages paid by such organization to individuals for weeks of unemployment which began on or after the effective date of such election until the total amount of such benefits equals the amount:
a. By which the assessments paid by such organization with respect to the 2-year period before the effective date of the election under paragraph (b)(3) of this section exceed
b. The total amount of unemployment benefits paid for the same period under this chapter on the basis of wages paid for employment by such organization.
(6)Group accounts. —Two or more employers that have become liable for payments in lieu of assessments, in accordance with this subsection may file a joint application to the Department 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 such application shall identify and authorize a group representative to act as the group’s agent for the purposes of this paragraph. Upon its approval of the application, the Department shall establish a group account for such employers effective as of the beginning of the calendar quarter in which the Department receives the application and shall notify the group’s representative of the effective date of the account. Such account shall remain in effect for not less than 2 years and thereafter until terminated at the discretion of the Department or upon application by the group. Upon establishment of the account, each member of the group shall be liable for payments in lieu of assessments with respect to each calendar quarter in the amount that bears the same ratio to the total benefits paid in such 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 such member in such quarter bear to the total wages paid during such quarter for service performed in the employ of all members of the group. The Department shall prescribe such regulations as it deems necessary with respect to applications for establishment, maintenance and termination of group accounts that are authorized by this paragraph 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 paragraph by members of the group and the time and manner of such payments.
(7) a. Notwithstanding any other provisions of the Unemployment Compensation Law for the payment of assessments, any governmental entity or instrumentality may, as an alternative to financing benefits by payment in lieu of assessments, elect to pay assessments beginning with the date on which subjectivity begins by filing written notice of its election with the Department no later than 120 days after such subjectivity begins; provided that such election shall be effective for at least 2 full calendar years; or it may elect to pay assessments for a period of not less than 2 calendar years beginning January 1 of any year if written notice of such election is filed with the Department not later than February 1 of such year; provided, further, that such governmental entity or instrumentality shall remain liable for payments in lieu of assessments with respect to all benefits paid based on base period wages earned in the employ of such entity or instrumentality in the period during which it financed its benefits in lieu of assessments as provided in paragraph (b)(1) of this section.
b. Any governmental entity or instrumentality may terminate its election to pay assessments as of January 1 of any year by filing written notice with the Department not later than February 1 of any year with respect to which termination is to become effective. It may not revert to an assessment method of financing for at least 2 full calendar years after such termination.
c. Any governmental entity or instrumentality electing the option for assessment financing will report and pay assessments in accordance with subsection (a) of this section and §§ 3348, 3350, and 3350A of this title, except that notwithstanding the above sections, the assessment rate shall be 1 % for the entire calendar year 1978 and the assessment rate for any subsequent calendar years shall be the rate established for such governmental entity or instrumentality under paragraph (b)(7)d. of this section.
d. On or before September 1 of each year beginning with September 1, 1979, the Department shall review the composite benefit cost experience of all governmental entities and instrumentalities and, on the basis of that experience, establish the assessment rate for the next following calendar year which can be expected to yield sufficient revenue to equal or exceed the projected benefit costs for that calendar year.