§ 52-04-18 — Financing benefits paid to employees of nonprofit organizations

North Dakota § 52-04-18

• Jurisdiction: North Dakota
• Title 52: Social Security
• Ch. 52-04: Contributions

Text

Benefits paid to employees of nonprofit organizations must 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 United States
Internal Revenue Code which is exempt from income tax under section 501(a) of such code.
1. Liability for contributions and election of reimbursement. Any nonprofit organization
which, pursuant to subdivision i of subsection 15 of section 52-01-01, is, or becomes,
subject to the North Dakota unemployment compensation law on or after January 1,
1972, shall pay contributions under the provisions of this chapter, unless it elects, in
accordance with this subsection, to pay to the bureau for the unemployment fund an
amount equal to the amount of regular benefits and of 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 which begin during the
effective period of such election.
a. Any nonprofit organization which is, or becomes, subject to the North Dakota
unemployment compensation law on January 1, 1972, may elect to become liable
for payments in lieu of contributions for a period of not less than one taxable year
beginning with January 1, 1972, provided it files with the bureau a written notice
of its election within the thirty-day period immediately following such date or
within a like period immediately following the date of enactment of this
subdivision, whichever occurs later.
b. Any nonprofit organization which becomes subject to the North Dakota
unemployment compensation law after January 1, 1972, may elect to become
liable for payments in lieu of contributions for a period of not less than twelve
months beginning with the date on which such subjectivity begins by filing a
written notice of its election with the bureau not later than thirty days immediately
following the date of the determination of such subjectivity.
c. Any nonprofit organization which makes an election in accordance with
subdivision a or subdivision b will continue to be liable for payments in lieu of
contributions until it files with the bureau a written notice terminating its election
not later than thirty days prior to the beginning of the taxable year for which such

termination shall first be effective, and it shall thereafter be treated as a new or
newly covered employer for the purpose of rate computation.
d. Any nonprofit organization which has been paying contributions under the North
Dakota unemployment compensation law for a period subsequent to January 1,
1972, may change to a reimbursable basis by filing with the bureau not later than
thirty days prior to the beginning of any taxable year a written notice of election to
become liable for payments in lieu of contributions. Such election is not
terminable by the organization for that and the next year.
e. The bureau 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 bureau, in accordance with such regulations as it may prescribe, shall notify
each nonprofit organization of any determination which it may make of its status
as an employer and of the effective date of any election which it makes and of
any termination of such election. Such determinations are subject to
reconsideration, appeal, and review in accordance with administrative regulations
of the bureau established for appeals from determinations on claims for benefits
and thereafter the decision of the bureau is subject to judicial review as provided
for in chapter 52-06.
2. Reimbursement payments. Payments in lieu of contributions must be made in
accordance with the provisions of this subsection including either subdivision a or b.
a. At the end of each calendar quarter, or at the end of any other period as
determined by the bureau, the bureau shall bill each nonprofit organization, or
group of such organizations, which has elected to make payments in lieu of
contributions 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.
b. An alternative method for reimbursement payments may be as follows:
(1) Each nonprofit organization that has elected payments in lieu of
contributions may request permission to make such payments as hereinafter
provided. Such method of payment becomes effective upon approval by the
bureau.
(2) At the end of each calendar quarter, the bureau shall bill each nonprofit
organization for an amount representing one of the following:
(a) For 1972, two-tenths of one percent of its total payroll for 1971.
(b) For years after 1972, such percentage of its total payroll for the
immediately preceding calendar year as the bureau shall determine.
Such determination must be based each year on the average benefit
costs attributable to service in the employ of nonprofit organizations
during the preceding calendar year.
(c) For any organization which did not pay wages throughout the four
calendar quarters of the preceding calendar year, such percentage of
its payroll during such year as the bureau shall determine.
(3) At the end of each taxable year, the bureau may modify the quarterly
percentage of payroll thereafter payable by the nonprofit organization in
order to minimize excess or insufficient payments.
(4) At the end of each taxable year, the bureau shall determine whether the
total of payments for such year made by a nonprofit organization is less
than, or in excess of, the total amount of regular benefits plus one-half of the
amount of extended benefits paid to individuals during such taxable year
based on wages attributable to service in the employ of such organization.
Each nonprofit organization whose total payments for such year are less
than the amount so determined is liable for payment of the unpaid balance
to the fund in accordance with subdivision c. If the total payments exceed

the amount so determined for the taxable year, all or a part of the excess
may, at the discretion of the bureau, be refunded from the fund or retained in
the fund as part of the payments which may be required for the next taxable
year.
c. Payment of any bill rendered under subdivision a or b must 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 in accordance with subdivision e.
d. Payments made by any nonprofit organization under the provisions of this
subsection 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 bureau is conclusive on the
organization unless, not later than fifteen days after the bill was mailed to the
last-known address or otherwise delivered to it, the organization files an appeal
with the bureau setting forth the grounds for such appeal. Proceedings on appeal
to the bureau from the amount of a bill rendered under this subsection must be in
accordance with administrative regulations of the bureau and thereafter the
decision of the bureau is subject to judicial review as provided for in chapter
52-06.
f. Past-due payments of amounts in lieu of contributions are subject to the same
interest, delinquency fee, and penalties that, pursuant to this chapter apply to
past-due contributions.
3. Authority to terminate elections. If any nonprofit organization is delinquent in making
payments in lieu of contributions as required under subsection 2, the bureau may
terminate such organization's election to make payments in lieu of contributions as of
the beginning of the next taxable year, and such termination is effective for that and
the next taxable year.
4. Allocation of benefit costs. Each employer that is liable for payments in lieu of
contributions shall pay to the bureau for the 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 contributions, the amount payable to the fund by each employer that is liable for
such payments must be determined in accordance with the provisions of subdivision a
or b.
a. Proportionate allocation, when fewer than all base-period employers are liable for
reimbursement. If benefits paid to an individual are based on wages paid by one
or more employers that are liable for payments in lieu of contributions and on
wages paid by one or more employers who are liable for contributions, the
amount of benefits payable by each employer that is liable for payments in lieu of
contributions must 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 of the
individual's base-period employers.
b. Proportionate allocation, when all base-period employers are liable for
reimbursement. If benefits paid to an individual are based on wages paid by two
or more employers that are liable for payments in lieu of contributions, the
amount of benefits payable by each such employer must 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 of the individual's base-period
employers.
5. Notwithstanding any provisions in this section, any nonprofit organization that prior to
January 1, 1969, paid contributions required by this chapter, and elects, within thirty
days after July 1, 1971, to make payments in lieu of contributions, may 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 account of
such organization.