PART III. CONTRIBUTIONS AND COVERAGE

 

§383-61  Payment of contributions; wages notincluded.  (a)  Contributions with respect to wages for employment shallaccrue and become payable by each employer for each calendar year in which theemployer is subject to this chapter.  The contributions shall become due and bepaid by each employer to the director of labor and industrial relations for thefund in accordance with such rules as the department of labor and industrialrelations may prescribe, and shall not be deducted, in whole or in part, fromthe wages of individuals in the employer's employ.

(b)  Except as provided in subsections (c) and(d), the term "wages" does not include remuneration paid with respectto employment to an individual by an employer during any calendar year whichexceeds the average annual wage, rounded to the nearest hundred dollars, forthe four calendar quarter period ending on June 30 of the preceding year.

The average annual wage shall be computed asfollows:  on or before November 30 of each year the total remunerationpaid by employers, as reported on contribution reports on or before such date,with respect to all employment during the four consecutive calendar quartersending on June 30 of such year shall be divided by the average monthlynumber of individuals performing services in such employment during the samefour calendar quarters as reported on such contribution reports and rounded tothe nearest hundred dollars.

(c)  For the calendar year 1991 only, the term"wages" does not include remuneration in excess of $7,000 paid withrespect to employment to an individual by an employer.  For calendar years2008, 2009, and 2010 only, the term "wages" as used in this part doesnot include remuneration in excess of $13,000 paid with respect to employmentto an individual by an employer so long as the balance of the unemploymenttrust fund does not fall below the adequate reserve fund as specified bysection 383-63.

(d)  For calendar year 1988 only, the term"wages" as used in this part does not include remuneration paid withrespect to employment to an individual by an employer during the calendar yearwhich exceeds:

(1)  One hundred per cent of the average annual wageif the most recently computed ratio of the current reserve fund to the adequatereserve fund prior to that calendar year is equal to or less than .80; or

(2)  Seventy-five per cent of the average annual wageif the most recently computed ratio of the current reserve fund to the adequatereserve fund prior to that calendar year is greater than .80 but less than 1.2;or

(3)  Fifty per cent of the average annual wage if themost recently computed ratio of the current reserve fund to the adequatereserve fund prior to that calendar year is equal to or more than 1.2;

provided that "wages" with respect towhich contributions are paid are not less than that part of remuneration whichis subject to tax in accordance with section 3306(b) of the Internal RevenueCode of 1986, as amended.

(e)  If an employer during any calendar yearacquires substantially all the property used in a trade or business, or in aseparate unit of a trade or business, of another employer, and after theacquisition employs an individual who prior to the acquisition was employed bythe predecessor, then for the purpose of determining whether remuneration inexcess of the average annual wages has been paid to the individual foremployment, remuneration paid to the individual by the predecessor during thecalendar year shall be considered as having been paid by the successoremployer.  For the purposes of this subsection, the term "employment"includes services constituting employment under any employment security law ofanother state or of the federal government.

(f)  Subsections (b) through (e) notwithstanding,for the purposes of this part the term "wages" shall include at leastthat amount of remuneration paid in a calendar year to an individual by anemployer or the employer's predecessor with respect to employment during anycalendar year which is subject to a tax under a federal law imposing a taxagainst which credit may be taken for contributions required to be paid into astate unemployment fund.

(g)  In accordance with section 303(a)(5) ofthe Social Security Act, as amended, and section 3304(a)(4) of the InternalRevenue Code of 1986, as amended, any contributions overpaid due to aretroactive reduction in the taxable wage base may be credited against theemployer's future contributions upon request by the employer; provided that noemployer shall be given a cash refund. [L 1939, c 219, §7(a); am L 1941, c 304,§1, subs 19; RL 1945, §4246; am L 1947, c 3, §1; am L 1951, c 191, §1(4); am L1953, c 23, §1(3); RL 1955, §93-60; am L 1957, c 115, §1(b); am L Sp 1959 2d, c1, §27; am L 1961, c 114, §1(b); am L 1964, c 55, §2; am L 1965, c 20, §1; HRS§383-61; am L 1971, c 187, §6; am L 1976, c 157, §3; gen ch 1985; am L 1987, c240, §1; am L 1991, c 7, §1; am L 2007, c 110, §3]