(a) For calendar years prior to 2025, on or before December 31 of each year, the Secretary of Labor shall establish an average employer assessment rate for the next succeeding calendar year. The average employer assessment rate shall be computed by multiplying total taxable wages paid by each employer, regardless of industrial classification category as listed in the North American Industry Classification System (NAICS) Manual furnished by the federal government, during the 12 consecutive months ending on June 30 by the employer’s assessment rate established for the next calendar year and dividing the aggregate product for all employers by the total of taxable wages paid by all employers during the 12 consecutive months ending on June 30.
(b) For calendar years prior to 2025, on or before December 31 of each year, the Secretary of Labor shall establish an average industry assessment rate for the next succeeding calendar year for industrial classification categories (carried to 6 places) 236, 237, and 238 as listed in the North American Industry Classification System (NAICS) Manual furnished by the federal government. The average industry assessment rate for standard industrial classification categories 236, 237, and 238 shall be computed by multiplying total taxable wages paid by each employer in the industrial classification category during the 12 consecutive months ending on June 30 by the employer’s assessment rate established for the next calendar year and dividing the aggregate product for all employers in the industrial classification category by the total of taxable wages paid by all employers in the industrial classification category during the 12 consecutive months ending on June 30.
(c) For calendar years prior to 2025, on or before December 31 of each year, the Secretary of Labor shall establish an average construction industry assessment rate for the next succeeding calendar year for industrial classification categories (carried to 3 places) 236, 237, and 238 as listed in the North American Industry Classification System (NAICS) Manual furnished by the federal government. The average construction industry assessment rate shall be computed by multiplying total taxable wages paid by each employer in the construction industry during the 12 consecutive months ending on June 30 by the employer’s assessment rate established for the next calendar year and dividing the aggregate product for all employers by the total of taxable wages paid by all construction industry employers during the 12 consecutive months ending on June 30.
(d) For any employer, excluding those employers in NAICS categories 236, 237, and 238, who first becomes subject to this chapter on or after January 1, 2003, through December 31, 2024, the new employer rate shall be the average employer assessment rate.
(e) For any employer in NAICS categories 236, 237 and 238 who first becomes subject to this chapter on or after January 1, 2003, through December 31, 2024, the new employer rate shall be the average industry assessment rate in the employer’s particular NAICS category (carried to 6 places) or the average construction industry assessment rate, whichever is the greater.
(f) The NAICS category assigned to any employer shall be as determined by the Secretary of Labor or the Secretary’s designee and shall be reviewable only for abuse of discretion.
(g) For calendar years prior to 2025, each employer subject to the new employer rate shall pay an assessment in an amount equal to the product of the new employer rate times wages paid by the employer during any calendar year, except as may be otherwise prescribed in this chapter.
(h) The standard rate of assessment shall be 2⁷⁄₁₀% for calendar years prior to 1985 and 5⁴⁄₁₀% for calendar year 1985 and subsequent years.
(i) Notwithstanding the computation of the average employer assessment rate, the average industry assessment rate or the average construction industry assessment rate, no employer assigned an assessment rate under subsection (d) or subsection (e) of this section shall have a rate of less than 1%.
(j) Notwithstanding the required computation of the average employer assessment rate, the average industry assessment rate or the average construction industry assessment rate to be established by the Secretary of Labor on or before December 31, 2020 for the next succeeding calendar year pursuant to subsections (a) through (c) of this section, for calendar year 2021, all employers assigned an assessment rate under subsection (d) or (e) of this section shall have the same rate as established by the Secretary of Labor for the calendar year 2020.
(k) Notwithstanding the required computation of the average employer assessment rate, the average industry assessment rate or the average construction industry assessment rate to be established by the Secretary of Labor for the next succeeding calendar year pursuant to subsections (a) through (c) of this section, for calendar year 2022, all employers assigned an assessment rate under subsections (d) or (e) of this section shall have the same rate as established by the Secretary of Labor for the calendar year 2020.
(l) [Repealed.]
(m) Notwithstanding any other provisions in this section, for calendar year 2024, effective January 1, 2024, the average employer assessment rate, the average industry assessment rate, and the average construction industry assessment rate shall each be 1%.
(n) Notwithstanding any other provisions in this section, for assessment rate year 2025 and 2026, the average employer assessment rate, the average industry assessment rate, and the average construction industry assessment rate shall each be 1.0%.
(o) New employer rates applicable to assessment rate year 2027 and after.
(1) Notwithstanding any other provisions of this section, any employer who first becomes subject to this chapter on or after January 1, 2027, shall be assigned a new employer rate pursuant to this subsection.
(2) Unless paragraph (o)(4) of this section applies, the new employer rate shall equal the sum of the following:
a. One percent.
b. Any industry assessment rate assigned pursuant to § 3350E of this title to the NAICS Code that the Department assigns to the new employer.
(3) Each employer subject to the new employer rate shall pay an assessment to the Department in an amount equal to the product of the new employer rate times taxable wages paid by the new employer during any calendar quarter, except as may be otherwise prescribed in this chapter.
(4) a. Notwithstanding any other provisions in this chapter, for any employer subject to the new employer rate who is a delinquent employer, the employer’s assessment rate for the assessment rate year shall be the following:
1. One quarter of a percent of the delinquency assessment rate, if the new employer is delinquent as of September 30 of the first year such employer is assigned the new employer rate.
2. One half of a percent of the delinquency assessment rate, if the new employer is delinquent as of September 30 of the second year such employer is assigned the new employer rate.
3. Three quarters of a percent of the delinquency assessment rate, if the new employer is delinquent as of September 30 of the third year such employer is assigned the new employer rate.
b. The Department shall have the authority, in its sole discretion, to waive the partial delinquency assessment rates set forth in this paragraph for good cause shown by a new employer.
(5) Any employer subject to this subsection shall also pay the operations and technology assessment rate set forth in § 3350B of this title.
(6) Notwithstanding anything to the contrary in this section, no employer assigned an assessment rate under this subsection shall have a new employer rate of less than 1.0%.