§ 26 §1221 — Payments; rates; amounts

1.
Payment.
2.
Rate of contribution.
Each employer subject to this chapter, other than those liable for payments in lieu of contributions, shall pay contributions at the rate of 5.4% of the wages paid by the employer with respect to employment during each calendar year, except as otherwise prescribed in subsection 4.
3.
Experience rating record.
4.
Employer's experience classifications.
The commissioner shall compute annually contribution rates for each employer based on the employer's experience rating record and shall designate a contribution rate schedule.
4-A.
Employer's experience classifications after January 1, 2000.
For rate years commencing on or after January 1, 2000, the commissioner shall compute annually contribution rates for each employer based on the employer's own experience rating record and shall designate a schedule and planned yield.
5.
Successor transfers of experience and assignment of rates; no common ownership.
The following applies to the assignment of rates and transfers of experience in successor purchases when there is substantially no common ownership, management or control between purchaser and predecessor.
5-A.
Transfers of experience and assignment of rates involving common ownership.
The following applies to the assignment of rates and transfers of experience when there is substantial common ownership, management or control between the successor and predecessor employers.
6.
Definitions.
The following terms, as used in this section, have the following meanings, unless the context otherwise indicates.
7.
Period of time to compute rates.
The commissioner shall have from July 1st to December 31st of each calendar year for the purpose of computing the rates of each employer entitled to the benefits of this section.
8.
Effective date; definition.
9.
Contributions paid in error to another state.
Contributions due under this chapter with respect to wages for insured work shall for the purpose of this section be deemed to have been paid to the fund as of the date payment was made as contributions therefor under another state or federal employment security law if payment into the fund of such contributions is made on such terms as the commissioner finds will be fair and reasonable as to all affected interests. Payments to the fund under this subsection shall be deemed to be contributions for purposes of this section.
10.
Liability for contributions and election of reimbursement.
Benefits paid to employees of nonprofit organizations and governmental entities shall be financed in accordance with this subsection. For the purpose of this subsection a nonprofit organization is an organization, or group of organizations, described in section 501(c)(3) of the U.S. Internal Revenue Code which is exempt from income tax under section 501(a) of such code. A nonprofit organization shall pay contributions as provided in subsections 1 and 2, unless it elects in accordance with this subsection to pay to the bureau for the unemployment compensation fund, in lieu of such contributions, an amount equal to the amount of regular benefits and of 1/2 of the extended benefits paid that are attributable to service in the employ of such employer. For the purposes of this subsection, a governmental entity is an employing unit as defined in section 1043, subsection 10 for which services in employment as defined in section 1043, subsection 11, paragraph A‑1, subparagraph (1), are performed. A governmental entity shall pay contributions as provided in subsections 1 and 2, unless it elects to pay to the bureau, in lieu of contributions, an amount equal to the amount of regular benefits and of 1/2 of extended benefits paid, except that for weeks of unemployment beginning after December 31, 1978, governmental entities shall pay an amount equal to all of the extended benefits paid in addition to all amounts of regular benefits paid to individuals that are attributable to service in the employ of such governmental entities.
11.
Reimbursement payments in lieu of contributions.
Reimbursement payments in lieu of contributions shall be made in accordance with this subsection.
12.
Provision of bond or other security.
In the discretion of the commissioner, an employer who elects to become liable for payments in lieu of contributions is required within 60 days after the effective date of the employer's election to execute and file with the bureau a surety bond or the employer may elect to deposit with the bureau money or securities as approved by the commissioner; upon the failure of an employer to comply with this subsection within the time limits imposed, the commissioner may terminate that employer's election to make payments in lieu of contributions, and the termination is effective for the current and next calendar year. This subsection does not apply to governmental entities as defined by section 1043, subsection 28, whether they act singly or in group accounts as allowed by subsection 15.
13.
Payments by the State, any political subdivision, or instrumentalities.
The State or any political subdivision or any of their instrumentalities shall pay contributions in accordance with subsections 1 and 2, unless a governmental entity elects to pay to the bureau for the unemployment compensation fund, in lieu of contributions, an amount equal to the amount of regular benefits and 1/2 of the extended benefits paid that are attributable to service in the employ of such governmental entity, except that with respect to benefits paid for weeks of unemployment after January 1, 1979, such governmental entity must make payments in lieu of contributions as provided in subsection 10.
14.
Allocation of benefit costs.
Each employer or governmental entity who is liable for payments in lieu of contributions shall pay to the bureau for the fund the amount as provided in subsection 10. 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 contributions, the amount payable to the fund by each employer who is liable for such payments shall be determined in accordance with paragraph A or B.
15.
Group accounts.
Two or more nonprofit organizations or 2 or more governmental entities that have become liable for payments in lieu of contributions, in accordance with subsections 10 and 13, may file a joint application to the commissioner 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 or governmental entities. Each such application must identify and authorize a group representative to act as the group's agent for the purposes of this subsection. Upon approval of the application, the commissioner shall establish a group account for such employers or governmental entities effective as of the beginning of the calendar quarter in which the commissioner receives the application and shall notify the group's representative of the effective date of the account. Such account remains in effect for not less than 2 years and thereafter until terminated at the discretion of the commissioner or upon application by the group. Upon establishment of the account, each member of the group is liable for payments in lieu of contributions 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 commissioner shall prescribe such rules the commissioner considers necessary with respect to applications for establishment, maintenance and termination of group accounts that are authorized by this subsection, 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 by members of the group and the time and manner of such payments.
16.
Transition provision.
Notwithstanding subsections 10, 11, 14 and 15, any nonprofit organization or group of organizations not required to be covered pursuant to section 3309(a)(1) of the Federal Unemployment Tax Act prior to January 1, 1978, that prior to October 20, 1976, paid contributions required by subsection 1, and pursuant to subsection 10, elects, within 30 days after January 1, 1978, to make payments in lieu of contributions shall not be required to make any 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 begin on or after the effective date of such election until the total amount of such benefits equals the amount of the positive balance in the experience rating record of such organization.

Legislative History

PL 1965, c. 381, §§19-21 (AMD). PL 1971, c. 538, §§35-46 (AMD). PL 1971, c. 620, §11 (AMD). PL 1973, c. 555, §§15-19 (AMD). PL 1973, c. 563, §§1-5 (AMD). PL 1975, c. 462, §§5-7 (AMD). PL 1975, c. 693 (AMD). PL 1975, c. 729 (AMD). PL 1977, c. 285 (AMD). PL 1977, c. 460, §§6,7 (AMD). PL 1977, c. 564, §§99-A (AMD). PL 1977, c. 570, §§26-37 (AMD). PL 1977, c. 585, §3 (AMD). PL 1977, c. 675, §§23-28 (AMD). PL 1977, c. 694, §§478,479 (AMD). PL 1977, c. 696, §205 (AMD). PL 1979, c. 541, §A184 (AMD). PL 1979, c. 579, §§23-29,43- 45 (AMD). PL 1979, c. 651, §§24-30,44- 47 (AMD). PL 1981, c. 16, §§1-10 (AMD). PL 1981, c. 168, §25 (AMD). PL 1981, c. 286, §4 (AMD). PL 1981, c. 547, §§2,3 (AMD). PL 1983, c. 16 (AMD). PL 1983, c. 128, §2 (AMD). PL 1983, c. 351, §§22-24 (AMD). PL 1983, c. 650, §2 (AMD). PL 1983, c. 753, §§2,3 (AMD). PL 1985, c. 348, §§9-11 (AMD). PL 1989, c. 363, §2 (AMD). PL 1993, c. 22, §§6,7 (AMD). PL 1993, c. 22, §8 (AFF). PL 1993, c. 312, §2 (AMD). PL 1995, c. 9, §5 (AMD). PL 1995, c. 9, §6 (AFF). PL 1995, c. 220, §§1,2 (AMD). PL 1995, c. 657, §3 (AMD). PL 1995, c. 657, §10 (AFF). PL 1997, c. 293, §§6-8 (AMD). PL 1997, c. 380, §§2,3 (AMD). PL 1997, c. 745, §§2,3 (AMD). PL 1999, c. 191, §1 (AMD). PL 1999, c. 464, §§9,10 (AMD). PL 1999, c. 740, §2 (AMD). RR 2005, c. 1, §12 (COR). PL 2005, c. 40, §1 (AMD). PL 2005, c. 120, §1 (AMD). PL 2007, c. 23, §1 (AMD). PL 2007, c. 352, Pt. A, §2 (AMD). PL 2011, c. 499, §§1, 2 (AMD). PL 2011, c. 499, §4 (AFF). PL 2013, c. 175, §1 (AMD). PL 2013, c. 314, §§3-5 (AMD). PL 2013, c. 314, §6 (AFF). PL 2015, c. 107, §§1, 2 (AMD). PL 2017, c. 117, §12 (AMD). PL 2017, c. 284, Pt. CCCCC, §§2-5 (AMD). PL 2019, c. 343, Pt. TTT, §1 (AMD). PL 2019, c. 585, §§1-4 (AMD). PL 2019, c. 616, Pt. EE, §§1, 2 (AMD). PL 2021, c. 456, §§31, 32 (AMD). RR 2023, c. 2, Pt. E, §§107-113 (COR). PL 2025, c. 235, §21 (AMD).