96.7 EMPLOYER CONTRIBUTIONS AND REIMBURSEMENTS.
1. Payment. Contributions accrue and are payable, in
accordance with rules adopted by the department, on all taxable wages
paid by an employer for insured work.
2. Contribution rates based on benefit experience.a. (1) The department shall maintain a separate account for
each employer and shall credit each employer's account with all
contributions which the employer has paid or which have been paid on
the employer's behalf.
(2) The amount of regular benefits plus fifty percent of the
amount of extended benefits paid to an eligible individual shall be
charged against the account of the employers in the base period in
the inverse chronological order in which the employment of the
individual occurred.
(a) However, if the individual to whom the benefits are paid is
in the employ of a base period employer at the time the individual is
receiving the benefits, and the individual is receiving the same
employment from the employer that the individual received during the
individual's base period, benefits paid to the individual shall not
be charged against the account of the employer. This provision
applies to both contributory and reimbursable employers,
notwithstanding subparagraph (3) and section 96.8, subsection 5.
(b) An employer's account shall not be charged with benefits paid
to an individual who left the work of the employer voluntarily
without good cause attributable to the employer or to an individual
who was discharged for misconduct in connection with the individual's
employment, or to an individual who failed without good cause, either
to apply for available, suitable work or to accept suitable work with
that employer, but shall be charged to the unemployment compensation
fund. This paragraph applies to both contributory and reimbursable
employers, notwithstanding section 96.8, subsection 5.
(c) The amount of benefits paid to an individual, which is solely
due to wage credits considered to be in an individual's base period
due to the exclusion and substitution of calendar quarters from the
individual's base period under section 96.23, shall be charged
against the account of the employer responsible for paying the
workers' compensation benefits for temporary total disability or
during a healing period under section 85.33, section 85.34,
subsection 1, or section 85A.17, or responsible for paying indemnity
insurance benefits.
(d) The account of an employer shall not be charged with benefits
paid to an individual for unemployment that is directly caused by a
major natural disaster declared by the president of the United
States, pursuant to the federal Disaster Relief Act of 1974, if the
individual would have been eligible for federal disaster unemployment
assistance benefits with respect to that unemployment but for the
individual's receipt of regular benefits.
(e) The account of an employer shall not be charged with benefits
paid to an individual who is laid off if the benefits are paid as the
result of the return to work of a permanent employee who is one of
the following:
(i) A member of the national guard or organized reserves of the
armed forces of the United States ordered to temporary duty, as
defined in section 29A.1, subsection 3, 11, or 12, for any purpose,
who has completed the duty as evidenced in accordance with section
29A.43.
(ii) A member of the civil air patrol performing duty pursuant to
section 29A.3A, who has completed the duty as evidenced in accordance
with section 29A.43.
(3) The amount of regular benefits charged against the account of
an employer for a calendar quarter of the base period shall not
exceed the amount of the individual's wage credits based on
employment with the employer during that quarter. The amount of
extended benefits charged against the account of an employer for a
calendar quarter of the base period shall not exceed an additional
fifty percent of the amount of the individual's wage credits based on
employment with the employer during that quarter. However, the
amount of extended benefits charged against the account of a
governmental entity which is either a reimbursable or contributory
employer, for a calendar quarter of the base period shall not exceed
an additional one hundred percent of the amount of the individual's
wage credits based on employment with the governmental entity during
that quarter.
(4) The department shall adopt rules prescribing the manner in
which benefits shall be charged against the accounts of several
employers for which an individual performed employment during the
same calendar quarter.
(5) This chapter shall not be construed to grant an employer or
an individual in the employer's service, prior claim or right to the
amount paid by the employer into the unemployment compensation fund
either on the employer's own behalf or on behalf of the individual.
(6) Within forty days after the close of each calendar quarter,
the department shall notify each employer of the amount of benefits
charged to the employer's account during that quarter. The
notification shall show the name of each individual to whom benefits
were paid, the individual's social security number, and the amount of
benefits paid to the individual. An employer which has not been
notified as provided in section 96.6, subsection 2, of the allowance
of benefits to an individual, may within thirty days after the date
of mailing of the notification appeal to the department for a hearing
to determine the eligibility of the individual to receive benefits.
The appeal shall be referred to an administrative law judge for
hearing and the employer and the individual shall receive notice of
the time and place of the hearing.
b. (1) If an organization, trade, or business, or a clearly
segregable and identifiable part of an organization, trade, or
business, for which contributions have been paid is sold or
transferred to a subsequent employing unit, or if one or more
employing units have been reorganized or merged into a single
employing unit, and the successor employer, having qualified as an
employer as defined in section 96.19, subsection 16, paragraph
"b", continues to operate the organization, trade, or business,
the successor employer shall assume the position of the predecessor
employer or employers with respect to the predecessors' payrolls,
contributions, accounts, and contribution rates to the same extent as
if no change had taken place in the ownership or control of the
organization, trade, or business. However, the successor employer
shall not assume the position of the predecessor employer or
employers with respect to the predecessor employer's or employers'
payrolls, contributions, accounts, and contribution rates which are
attributable to that part of the organization, trade, or business
transferred, unless the successor employer applies to the department
within ninety days from the date of the partial transfer, and the
succession is approved by the predecessor employer or employers and
the department.
(2) Notwithstanding any other provision of this chapter, if an
employer sells or transfers its organization, trade, or business, or
a portion thereof, to another employer, and at the time of the sale
or transfer, there is substantially common ownership, management, or
control of the two employers, then the unemployment experience
attributable to the sold or transferred organization, trade, or
business shall be transferred to the successor employer. The
transfer of part or all of an employer's workforce to another
employer shall be considered a sale or transfer of the organization,
trade, or business where the predecessor employer no longer operates
the organization, trade, or business with respect to the transferred
workforce and such organization, trade, or business is operated by
the successor employer.
(3) (a) Notwithstanding any other provision of this chapter, if a
person is not an employer at the time such person acquires an
organization, trade, or business of an employer, or a portion
thereof, the unemployment experience of the acquired organization,
trade, or business shall not be transferred to such person if the
department finds such person acquired the organization, trade, or
business solely or primarily for the purpose of obtaining a lower
rate of contribution. Instead, such person shall be assigned the
applicable new employer rate under paragraph "c".
(b) In determining whether an organization, trade, or business or
portion thereof was acquired solely or primarily for the purpose of
obtaining a lower rate of contribution, the department shall use
objective factors which may include the cost of acquiring the
organization, trade, or business; whether the person continued the
acquired organization, trade, or business; how long such
organization, trade, or business was continued; and whether a
substantial number of new employees were hired for performance of
duties unrelated to the organization, trade, or business operated
prior to the acquisition. The department shall establish methods and
procedures to identify the transfer or acquisition of an
organization, trade, or business under this subparagraph (3) and
subparagraph (2).
(4) The predecessor employer, prior to entering into a contract
with a successor employer relating to the sale or transfer of the
organization, trade, or business, or a clearly segregable and
identifiable part of the organization, trade, or business, shall
disclose to the successor employer the predecessor employer's record
of charges of benefits payments and any layoffs or incidences since
the last record that would affect the experience record. A
predecessor employer who fails to disclose or willfully discloses
incorrect information to a successor employer regarding the
predecessor employer's record of charges of benefits payments is
liable to the successor employer for any actual damages and attorney
fees incurred by the successor employer as a result of the
predecessor employer's failure to disclose or disclosure of incorrect
information. The department shall include notice of the requirement
of disclosure in the department's quarterly notification given to
each employer pursuant to paragraph "a", subparagraph (6).
(5) The contribution rate to be assigned to the successor
employer for the period beginning not earlier than the date of the
succession and ending not later than the beginning of the next
following rate year, shall be the contribution rate of the
predecessor employer with respect to the period immediately preceding
the date of the succession, provided the successor employer was not,
prior to the succession, a subject employer, and only one predecessor
employer, or only predecessor employers with identical rates, are
involved. If the predecessor employers' rates are not identical and
the successor employer is not a subject employer prior to the
succession, the department shall assign the successor employer a rate
for the remainder of the rate year by combining the experience of the
predecessor employers. If the successor employer is a subject
employer prior to the succession, the successor employer may elect to
retain the employer's own rate for the remainder of the rate year, or
the successor employer may apply to the department to have the
employer's rate redetermined by combining the employer's experience
with the experience of the predecessor employer or employers.
However, if the successor employer is a subject employer prior to the
succession and has had a partial transfer of the experience of the
predecessor employer or employers approved, then the department shall
recompute the successor employer's rate for the remainder of the rate
year.
c. (1) A nonconstruction contributory employer newly subject
to this chapter shall pay contributions at the rate specified in the
twelfth benefit ratio rank but not less than one percent until the
end of the calendar year in which the employer's account has been
chargeable with benefits for twelve consecutive calendar quarters
immediately preceding the computation date.
(2) A construction contributory employer, as defined under rules
adopted by the department, which is newly subject to this chapter
shall pay contributions at the rate specified in the twenty-first
benefit ratio rank until the end of the calendar year in which the
employer's account has been chargeable with benefits for twelve
consecutive calendar quarters.
(3) Thereafter, the employer's contribution rate shall be
determined in accordance with paragraph "d", except that the
employer's average annual taxable payroll and benefit ratio may be
computed, as determined by the department, for less than five periods
of four consecutive calendar quarters immediately preceding the
computation date.
d. The department shall determine the contribution rate table
to be in effect for the rate year following the computation date, by
determining the ratio of the current reserve fund ratio to the
highest benefit cost ratio on the computation date. On or before the
fifth day of September the department shall make available to
employers the contribution rate table to be in effect for the next
rate year.
(1) The current reserve fund ratio is computed by dividing the
total funds available for payment of benefits, on the computation
date, by the total wages paid in covered employment excluding
reimbursable employment wages during the first four calendar quarters
of the five calendar quarters immediately preceding the computation
date. However, in computing the current reserve fund ratio the
following amounts shall be added to the total funds available for
payment of benefits on the following computation dates:
(a) Twenty million dollars on July 1, 2004.
(b) Seventy million dollars on July 1, 2005.
(c) One hundred twenty million dollars on July 1, 2006.
(d) One hundred fifty million dollars on July 1, 2007, and on
each subsequent computation date.
(2) The highest benefit cost ratio is the highest of the
resulting ratios computed by dividing the total benefits paid,
excluding reimbursable benefits paid, during each consecutive
twelve-month period, during the ten-year period ending on the
computation date, by the total wages, excluding reimbursable
employment wages, paid in the four calendar quarters ending nearest
and prior to the last day of such twelve-month period; however, the
highest benefit cost ratio shall not be less than .02.
If the current reserve fund ratio, divided by the highest benefit
cost ratio:
$KIP$ 1
Equals or But is The contribution rate
exceeds less than table in effect shall be
-- 0.3 1
0.3 0.5 2
0.5 0.7 3
0.7 0.85 4
0.85 1.0 5
1.0 1.15 6
1.15 1.30 7
1.30 -- 8
$KIP$ 1
"Benefit ratio" means a number computed to six decimal places
on July 1 of each year obtained by dividing the average of all
benefits charged to an employer during the five periods of four
consecutive calendar quarters immediately preceding the computation
date by the employer's average annual taxable payroll.
Each employer qualified for an experience rating shall be assigned
a contribution rate for each rate year that corresponds to the
employer's benefit ratio rank in the contribution rate table
effective for the rate year from the following contribution rate
tables. Each employer's benefit ratio rank shall be computed by
listing all the employers by increasing benefit ratios, from the
lowest benefit ratio to the highest benefit ratio and grouping the
employers so listed into twenty-one separate ranks containing as
nearly as possible four and seventy-six hundredths percent of the
total taxable wages, excluding reimbursable employment wages, paid in
covered employment during the four completed calendar quarters
immediately preceding the computation date. If an employer's taxable
wages qualify the employer for two separate benefit ratio ranks the
employer shall be afforded the benefit ratio rank assigned the lower
contribution rate. Employers with identical benefit ratios shall be
assigned to the same benefit ratio rank.
$KIP$ 1
Approximate Contribution Rate Tables
Benefit Cumulative
Ratio Taxable Pay-
Rank roll Limit 1 2 3 4 5 6 7 8
----------------------------------------
1 4.8% 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
2 9.5% 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
3 14.3% 0.1 0.1 0.1 0.1 0.1 0.0 0.0 0.0
4 19.0% 0.4 0.3 0.3 0.2 0.1 0.1 0.1 0.1
5 23.8% 0.6 0.5 0.4 0.3 0.3 0.2 0.1 0.1
6 28.6% 0.9 0.8 0.6 0.5 0.4 0.3 0.2 0.1
7 33.3% 1.2 1.0 0.8 0.6 0.5 0.4 0.3 0.2
8 38.1% 1.5 1.3 1.0 0.8 0.6 0.5 0.3 0.2
9 42.8% 1.9 1.5 1.2 0.9 0.7 0.6 0.4 0.3
10 47.6% 2.1 1.8 1.4 1.1 0.8 0.6 0.5 0.3
11 52.4% 2.5 2.0 1.6 1.3 1.0 0.7 0.5 0.3
12 57.1% 3.0 2.4 1.9 1.5 1.1 0.9 0.6 0.4
13 61.9% 3.6 2.9 2.4 1.8 1.4 1.1 0.8 0.5
14 66.6% 4.4 3.6 2.9 2.2 1.7 1.3 1.0 0.6
15 71.4% 5.3 4.3 3.5 2.7 2.0 1.6 1.1 0.7
16 76.2% 6.3 5.2 4.1 3.2 2.4 1.9 1.4 0.9
17 80.9% 7.0 6.4 5.2 4.0 3.0 2.3 1.7 1.1
18 85.7% 7.5 7.5 7.0 5.4 4.1 3.1 2.3 1.5
19 90.4% 8.0 8.0 8.0 7.3 5.6 4.2 3.1 2.0
20 95.2% 8.5 8.5 8.5 8.0 7.6 5.8 4.3 2.8
21 100.0% 9.0 9.0 9.0 9.0 8.5 8.0 7.5 7.0
$KIP$ 1
e. The department shall fix the contribution rate for each
employer and notify the employer of the rate by regular mail to the
last known address of the employer. An employer may appeal to the
department for a revision of the contribution rate within thirty days
from the date of the notice to the employer. After providing an
opportunity for a hearing, the department may affirm, set aside, or
modify its former determination and may grant the employer a new
contribution rate. The department shall notify the employer of its
decision by regular mail. Judicial review of action of the
department may be sought pursuant to chapter 17A.
If an employer's account has been charged with benefits as the
result of a decision allowing benefits and the decision is reversed,
the employer may appeal, within thirty days from the date of the next
contribution rate notice, for a recomputation of the rate. If
contributions become due at a disputed contribution rate prior to the
employer receiving a decision reversing benefits, the employer shall
pay the contributions at the disputed rate but shall be eligible for
a refund pursuant to section 96.14, subsection 5. If a base period
employer's account has been charged with benefits paid to an employee
at a time when the employee was employed by the base period employer
in the same employment as in the base period, the employer may
appeal, within thirty days from the date of the first notice of the
employer's contribution rate which is based on the charges, for a
recomputation of the rate.
f. If an employer has not filed a contribution and payroll
quarterly report, as required pursuant to section 96.11, subsection
6, for a calendar quarter which precedes the computation date and
upon which the employer's rate of contribution is computed, the
employer's average annual taxable payroll shall be computed by
considering the delinquent quarterly reports as containing zero
taxable wages.
If a delinquent quarterly report is received by September 30
following the computation date the contribution rate shall be
recomputed by using the taxable wages in all the appropriate
quarterly reports on file to determine the average annual taxable
payroll.
If a delinquent quarterly report is received after September 30
following the computation date the contribution rate shall not be
recomputed, unless the rate is appealed in writing to the department
under paragraph "e" and the delinquent quarterly report is also
submitted not later than thirty days after the department notifies
the employer of the rate under paragraph "e".
3. Determination and assessment of contributions.a. As soon as practicable and in any event within two years
after an employer has filed reports, as required pursuant to section
96.11, subsection 6, the department shall examine the reports and
determine the correct amount of contributions due, and the amount so
determined by the department shall be the contributions payable. If
the contributions found due are greater than the amount paid, the
department shall send a notice by certified mail to the employer with
respect to the additional contributions and interest assessed. A
lien shall attach as provided in section 96.14, subsection 3, if the
assessment is not paid or appealed within thirty days of the date of
the notice of assessment.
b. If the department discovers from the examination of the
reports required pursuant to section 96.11, subsection 6, or in some
other manner that wages, or any portion of wages, payable for
employment, have not been listed in the reports, or that reports were
not filed when due, or that reports have been filed showing
contributions due but contributions in fact have not been paid, the
department shall at any time within five years after the time the
reports were due, determine the correct amount of contributions
payable, together with interest and any applicable penalty as
provided in this chapter. The department shall send a notice by
certified mail to the employer of the amount assessed and a lien
shall attach as provided in paragraph "a".
c. The certificate of the department to the effect that
contributions have not been paid, that reports have not been filed,
or that information has not been furnished as required under the
provisions of this chapter, is prima facie evidence of the failure to
pay contributions, file reports, or furnish information.
4. Employer liability determination. The department shall
initially determine all questions relating to the liability of an
employing unit or employer, including the amount of contribution, the
contribution rate, and successorship. A copy of the initial
determination shall be sent by regular mail to the last address,
according to the records of the department, of each affected
employing unit or employer.
The affected employing unit or employer may appeal in writing to
the department from the initial determination. An appeal shall not
be entertained for any reason by the department unless the appeal is
filed with the department within thirty days from the date on which
the initial determination is mailed. If an appeal is not so filed,
the initial determination shall with the expiration of the appeal
period become final and conclusive in all respects and for all
purposes.
A hearing on an appeal shall be conducted according to rules
adopted by the department. A copy of the decision of the
administrative law judge shall be sent by regular mail to the last
address, according to the records of the department, of each affected
employing unit or employer.
The department's decision on the appeal shall be final and
conclusive as to the liability of the employing unit or employer
unless the employing unit or employer files an appeal for judicial
review within thirty days after the date of mailing of the decision
as provided in subsection 5.
5. Judicial review. Notwithstanding chapter 17A, petitions
for judicial review may be filed in the district court of the county
in which the employer resides, or in which the employer's principal
place of business is located, or in the case of a nonresident not
maintaining a place of business in this state either in a county in
which the wages payable for employment were earned or paid or in Polk
county, within thirty days after the date of the notice to the
employer of the department's final determination as provided for in
subsection 2, 3, or 4.
The petitioner shall file with the clerk of the district court a
bond for the use of the respondent, with sureties approved by the
clerk, with any penalty to be fixed and approved by the clerk. The
bond shall not be less than fifty dollars and shall be conditioned on
the petitioner's performance of the orders of the court. In all
other respects, the judicial review shall be in accordance with
chapter 17A.
6. Jeopardy assessments. If the department believes that the
collection of contributions payable or benefits reimbursable will be
jeopardized by delay, the department may immediately make an
assessment of the estimated amount of contributions due or benefits
reimbursable, together with interest and applicable penalty, and
demand payment from the employer. If the payment is not made, the
department may immediately file a lien against the employer which may
be followed by the issuance of a distress warrant.
The department shall be permitted to accept a bond from the
employer to satisfy collection until the amount of contributions due
is determined. The bond shall be in an amount deemed necessary, but
not more than double the amount of the contributions involved, with
securities satisfactory to the department.
7. Financing benefits paid to employees of governmental
entities.a. A governmental entity which is an employer under this
chapter shall pay benefits in a manner provided for a reimbursable
employer unless the governmental entity elects to make contributions
as a contributory employer. The election shall be effective for a
minimum of one calendar year and may be changed if an election is
made to become a reimbursable employer prior to December 1 for a
minimum of the following calendar year.
However, if on the effective date of the election the governmental
entity has a negative balance in its contributory account, the
governmental entity shall pay to the fund within a time period
determined by the department the amount of the negative balance and
shall immediately become liable to reimburse the unemployment
compensation fund for benefits paid in lieu of contributions.
Regular or extended benefits paid after the effective date of the
election, including those based on wages paid while the governmental
entity was a contributory employer, shall be billed to the
governmental entity as a reimbursable employer.
b. A governmental entity electing to make contributions as a
contributory employer, with at least eight consecutive calendar
quarters immediately preceding the computation date throughout which
the employer's account has been chargeable with benefits, shall be
assigned a contribution rate under this paragraph. Contribution
rates shall be assigned by listing all governmental contributory
employers by decreasing percentages of excess from the highest
positive percentage of excess to the highest negative percentage of
excess. The employers so listed shall be grouped into seven separate
percentage of excess ranks each containing as nearly as possible
one-seventh of the total taxable wages of governmental entities
eligible to be assigned a rate under this paragraph.
As used in this subsection, "percentage of excess" means a
number computed to six decimal places on July 1 of each year obtained
by dividing the excess of all contributions attributable to an
employer over the sum of all benefits charged to an employer by the
employer's average annual payroll. An employer's percentage of
excess is a positive number when the total of all contributions paid
to an employer's account for all past periods to and including those
for the quarter immediately preceding the rate computation date
exceeds the total benefits charged to such account for the same
period. An employer's percentage of excess is a negative number when
the total of all contributions paid to an employer's account for all
past periods to and including those for the quarter immediately
preceding the rate computation date is less than the total benefits
charged to such account for the same period.
As used in this subsection, "average annual taxable payroll"
means the average of the total amount of taxable wages paid by an
employer for insured work during the three periods of four
consecutive calendar quarters immediately preceding the computation
date. However, for an employer which qualifies on any computation
date for a computed rate on the basis of less than twelve consecutive
calendar quarters of chargeability immediately preceding the
computation date, "average annual taxable payroll" means the
average of the employer's total amount of taxable wages for the two
periods of four consecutive calendar quarters immediately preceding
the computation date.
The department shall annually calculate a base rate for each
calendar year. The base rate is equal to the sum of the benefits
charged to governmental contributory employers in the calendar year
immediately preceding the computation date plus or minus the
difference between the total benefits and contributions paid by
governmental contributory employers since January 1, 1980, which sum
is divided by the total taxable wages reported by governmental
contributory employers during the calendar year immediately preceding
the computation date, rounded to the next highest one-tenth of one
percent. Excess contributions from the years 1978 and 1979 shall be
used to offset benefits paid in any calendar year where total
benefits exceed total contributions of governmental contributory
employers. The contribution rate as a percentage of taxable wages of
the employer shall be assigned as follows:
$KIP$ 1
If the The contribution Approximate
percentage rate shall be: cumulative
of excess taxable
rank is: payroll
1 Base Rate--0.9 14.3
2 Base Rate--0.6 28.6
3 Base Rate--0.3 42.9
4 Base Rate 57.2
5 Base Rate + 0.3 71.5
6 Base Rate + 0.6 85.8
7 Base Rate + 0.9 100.0
If a governmental contributory employer is grouped into two
separate percentage of excess ranks, the employer shall be assigned
the lower contribution rate of the two percentage of excess ranks.
Notwithstanding the provisions of this paragraph, a governmental
contributory employer shall not be assigned a contribution rate less
than one-tenth of one percent of taxable wages unless the employer
has a positive percentage of excess greater than five percent.
Governmental entities electing to be contributory employers which
are not eligible to be assigned a contribution rate under this
paragraph shall be assigned the base rate as a contribution rate for
the calendar year.
c. For the purposes of this subsection, "governmental
reimbursable employer" means an employer which makes payments to
the department for the unemployment compensation fund in an amount
equal to the regular and extended benefits paid, which are based on
wages paid for service in the employ of the employer. Benefits paid
to an eligible individual shall be charged against the base period
employers in the inverse chronological order in which the employment
of the individual occurred. However, the amount of benefits charged
against an employer for a calendar quarter of the base period shall
not exceed the amount of the individual's wage credits based upon
employment with that employer during that quarter. At the end of
each calendar quarter, the department shall bill each governmental
reimbursable employer for benefits paid during that quarter.
Payments by a governmental reimbursable employer shall be made in
accordance with subsection 8, paragraph "b", subparagraphs (2)
through (5).
d. A state agency, board, commission, or department, except a
state board of regents institution, shall, after approval of the
billing for a governmental reimbursable employer as provided in
subsection 8, paragraph "b", submit the billing to the director
of the department of administrative services. The director of the
department of administrative services shall pay the approved billing
out of any funds in the state treasury not otherwise appropriated. A
state agency, board, commission, or department shall reimburse the
director of the department of administrative services out of any
revolving, special, trust, or federal fund from which all or a
portion of the billing can be paid, for payments made by the director
of the department of administrative services on behalf of the agency,
board, commission, or department.
e. If the entire enterprise or business of a reimbursable
governmental entity is sold or otherwise transferred to a subsequent
employing unit and the acquiring employing unit continues to operate
the enterprise or business, the acquiring employing unit shall assume
the position of the reimbursable governmental entity with respect to
the reimbursable governmental entity's liability to pay the
department for reimbursable benefits based on the governmental
entity's payroll to the same extent as if no change in the ownership
or control of the enterprise or business had occurred, whether or not
the acquiring employing unit elected or elects, or was or is eligible
to elect, to become a reimbursable employer with respect to the
acquiring employing unit's own payroll prior to or after the
acquisition of the governmental entity's enterprise or business.
f. If a reimbursable instrumentality of the state or of a
political subdivision is discontinued other than by sale or transfer
to a subsequent employing unit as described in paragraph "e", the
state or the political subdivision, respectively, shall reimburse the
department for benefits paid to former employees of the
instrumentality after the instrumentality is discontinued.
8. Financing benefits paid to employees of nonprofit
organizations.a. A nonprofit organization which is, or becomes, subject to
this chapter, shall pay contributions under subsections 1 and 2,
unless the nonprofit organization elects, in accordance with this
paragraph, to reimburse the unemployment compensation fund for
benefits paid in an amount equal to the amount of regular benefits
and of one-half of the extended benefits paid, which are based on
wages paid for service in the employ of the nonprofit organization
during the effective period of the election.
(1) A nonprofit organization may elect to become a reimbursable
employer for a period of not less than two calendar years by filing
with the department a written notice of its election not later than
thirty days prior to the beginning of the calendar year for which the
election is to be effective.
(2) A nonprofit organization which makes an election in
accordance with subparagraph (1) shall continue to be a reimbursable
employer until the nonprofit organization files with the department a
written notice terminating its election not later than thirty days
prior to the beginning of the calendar year for which the termination
is to be effective.
(3) The department may for good cause extend the period within
which a notice of election or termination of election must be filed
and may permit an election or termination of election to be
retroactive.
(4) The department, in accordance with rules, shall notify each
nonprofit organization of any determination made by the department of
the status of the nonprofit organization as an employer and of the
effective date of any election or termination of election. A
determination is subject to appeal and review in accordance with
subsections 4 and 5.
b. Reimbursements for benefits paid in lieu of contributions
shall be made in accordance with the following:
(1) At the end of each calendar quarter, the department shall
bill each nonprofit organization which has elected to reimburse the
unemployment compensation fund for benefits paid in an amount equal
to the full amount of regular benefits and one-half of the amount of
extended benefits paid during the quarter which are based on wages
paid for service in the employ of the organization. Benefits paid to
an individual shall be charged against the base period employers in
the inverse chronological order in which the employment of the
individual occurred. However, the amount of benefits charged against
an employer for a calendar quarter of the base period shall not
exceed the amount of the individual's wage credits based upon
employment with that employer during that quarter.
(2) The nonprofit organization shall pay the bill not later than
thirty days after the bill was mailed or otherwise delivered to the
last known address of the nonprofit organization, unless the
nonprofit organization has filed an application for redetermination
in accordance with subparagraph (4).
(3) Reimbursements made by a nonprofit organization shall not be
deducted, in whole or in part, from the wages of individuals in the
employ of the nonprofit organization.
(4) The amount due specified in a bill from the department is
conclusive unless, not later than fifteen days following the date the
bill was mailed or otherwise delivered to the last known address of
the nonprofit organization, the nonprofit organization files an
application for redetermination with the department setting forth the
grounds for the application. The department shall promptly review
the amount due specified in the bill and shall issue a
redetermination. The redetermination is conclusive on the nonprofit
organization unless, not later than thirty days after the
redetermination was mailed or otherwise delivered to the last known
address of the nonprofit organization, the nonprofit organization
files an appeal to the district court pursuant to subsection 5.
(5) The provisions for collection of contributions under section
96.14 are applicable to reimbursements for benefits paid in lieu of
contributions.
(6) If the entire enterprise or business of a reimbursable
nonprofit organization is sold or otherwise transferred to a
subsequent employing unit and the acquiring employing unit continues
to operate the enterprise or business, the acquiring employing unit
shall assume the position of the reimbursable nonprofit organization
with respect to the nonprofit organization's liability to pay the
department for reimbursable benefits based on the nonprofit
organization's payroll to the same extent as if no change in the
ownership or control of the enterprise or business had occurred,
whether or not the acquiring employing unit elected or elects, or was
or is eligible to elect, to become a reimbursable employer with
respect to the acquiring employing unit's own payroll prior to or
after the acquisition of the nonprofit organization's enterprise or
business.
9. Indian tribes.a. For purposes of this chapter, employment by an Indian
tribe shall be covered in the same manner and terms as provided for
governmental entities and the same exclusions that are applicable for
governmental entities shall also apply.
b. In financing benefits paid to employees of an Indian tribe
under this chapter, a contribution rate shall be determined and
contributions shall be assessed and collected from an Indian tribe in
the same manner provided in this chapter for contributory employers,
except that an Indian tribe shall have the option of electing to
become a governmental reimbursable employer. An Indian tribe shall
have the option to make a separate election as provided in this
paragraph for itself and for each subdivision, subsidiary, or
business enterprise wholly owned by the Indian tribe. The
reimbursable status of an Indian tribe shall be in the same manner,
to the same extent, and on the same terms as are applicable to all
governmental reimbursable employers under this chapter.
c. If the department determines that an Indian tribe has
failed to make any payment required pursuant to this chapter after
providing the Indian tribe with ninety days' notice of this failure,
the department may issue a determination that ceases coverage of all
employment by that Indian tribe until such time as all payments are
received by the department.
10. Group accounts. Two or more nonprofit organizations or
two or more governmental entities which have become reimbursable
employers in accordance with subsection 7 or subsection 8, paragraph
"a", 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 which are attributable to service in the employ of
the employers. The application shall 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 department shall
establish a group account for the employers effective as of the
beginning of the calendar quarter in which the department receives
the application and shall notify the group's agent of the effective
date of the account. The account shall remain in effect for not less
than one year until terminated at the discretion of the department or
upon application by the group. Upon establishment of the account,
each employer member of the group shall be liable for benefit
reimbursements in lieu of contributions with respect to each calendar
quarter in an amount which bears the same ratio to the total benefits
paid in the quarter which are attributable to service performed in
the employ of all members of the group, as the total wages paid for
service performed in the employ of the member in the quarter bear to
the total wages paid for service performed in the employ of all
members of the group in the quarter. The department shall adopt
rules with respect to applications for establishment, maintenance,
and termination of group accounts, for addition of new members to,
and withdrawal of active members from group accounts, and for the
determination of the amounts which are payable by members of the
group and the time and manner of the payments.
11. Temporary emergency surcharge. If on the first day of
the third month in any calendar quarter, the department has an
outstanding balance of interest accrued on advance moneys received
from the federal government for the payment of unemployment
compensation benefits, or is projected to have an outstanding balance
of accruing federal interest for that calendar quarter, the
department shall collect a uniform temporary emergency surcharge for
that calendar quarter, retroactive to the beginning of that calendar
quarter. The surcharge shall be a percentage of employer
contribution rates and shall be set at a uniform percentage, for all
employers subject to the surcharge, necessary to pay the interest
accrued on the moneys advanced to the department by the federal
government, and to pay any additional federal interest which will
accrue for the remainder of that calendar quarter. The surcharge
shall apply to all employers except governmental entities, nonprofit
organizations, and employers assigned a zero contribution rate. The
department shall adopt rules prescribing the manner in which the
surcharge will be collected. Interest shall accrue on all unpaid
surcharges under this subsection at the same rate as on regular
contributions and shall be collectible in the same manner. The
surcharge shall not affect the computation of regular contributions
under this chapter.
A special fund to be known as the temporary emergency surcharge
fund is created in the state treasury. The special fund is separate
and distinct from the unemployment compensation fund. All
contributions collected from the temporary emergency surcharge shall
be deposited in the special fund. The special fund shall be used
only to pay interest accruing on advance moneys received from the
federal government for the payment of unemployment compensation
benefits. Interest earned upon moneys in the special fund shall be
deposited in and credited to the special fund.
If the department determines on June 1 that no outstanding balance
of interest due has accrued on advanced moneys received from the
federal government for the payment of unemployment compensation
benefits, and that no outstanding balance is projected to accrue for
the remainder of the calendar year, the department shall notify the
treasurer of state of its determination. The treasurer of state
shall immediately transfer all moneys, including accrued interest, in
the temporary emergency surcharge fund to the unemployment
compensation fund for the payment of benefits.
2004 implementation of July 1, 2003, repeal of subsection 12
applies to contribution rates for and after calendar year 2004, see
§96.7, subsection 12, Code 2003
96.7 EMPLOYER CONTRIBUTIONS AND REIMBURSEMENTS.
1. Payment. Contributions accrue and are payable, in
accordance with rules adopted by the department, on all taxable wages
paid by an employer for insured work.
2. Contribution rates based on benefit experience.a. (1) The department shall maintain a separate account for
each employer and shall credit each employer's account with all
contributions which the employer has paid or which have been paid on
the employer's behalf.
(2) The amount of regular benefits plus fifty percent of the
amount of extended benefits paid to an eligible individual shall be
charged against the account of the employers in the base period in
the inverse chronological order in which the employment of the
individual occurred.
(a) However, if the individual to whom the benefits are paid is
in the employ of a base period employer at the time the individual is
receiving the benefits, and the individual is receiving the same
employment from the employer that the individual received during the
individual's base period, benefits paid to the individual shall not
be charged against the account of the employer. This provision
applies to both contributory and reimbursable employers,
notwithstanding subparagraph (3) and section 96.8, subsection 5.
(b) An employer's account shall not be charged with benefits paid
to an individual who left the work of the employer voluntarily
without good cause attributable to the employer or to an individual
who was discharged for misconduct in connection with the individual's
employment, or to an individual who failed without good cause, either
to apply for available, suitable work or to accept suitable work with
that employer, but shall be charged to the unemployment compensation
fund. This paragraph applies to both contributory and reimbursable
employers, notwithstanding section 96.8, subsection 5.
(c) The amount of benefits paid to an individual, which is solely
due to wage credits considered to be in an individual's base period
due to the exclusion and substitution of calendar quarters from the
individual's base period under section 96.23, shall be charged
against the account of the employer responsible for paying the
workers' compensation benefits for temporary total disability or
during a healing period under section 85.33, section 85.34,
subsection 1, or section 85A.17, or responsible for paying indemnity
insurance benefits.
(d) The account of an employer shall not be charged with benefits
paid to an individual for unemployment that is directly caused by a
major natural disaster declared by the president of the United
States, pursuant to the federal Disaster Relief Act of 1974, if the
individual would have been eligible for federal disaster unemployment
assistance benefits with respect to that unemployment but for the
individual's receipt of regular benefits.
(e) The account of an employer shall not be charged with benefits
paid to an individual who is laid off if the benefits are paid as the
result of the return to work of a permanent employee who is one of
the following:
(i) A member of the national guard or organized reserves of the
armed forces of the United States ordered to temporary duty, as
defined in section 29A.1, subsection 3, 11, or 12, for any purpose,
who has completed the duty as evidenced in accordance with section
29A.43.
(ii) A member of the civil air patrol performing duty pursuant to
section 29A.3A, who has completed the duty as evidenced in accordance
with section 29A.43.
(3) The amount of regular benefits charged against the account of
an employer for a calendar quarter of the base period shall not
exceed the amount of the individual's wage credits based on
employment with the employer during that quarter. The amount of
extended benefits charged against the account of an employer for a
calendar quarter of the base period shall not exceed an additional
fifty percent of the amount of the individual's wage credits based on
employment with the employer during that quarter. However, the
amount of extended benefits charged against the account of a
governmental entity which is either a reimbursable or contributory
employer, for a calendar quarter of the base period shall not exceed
an additional one hundred percent of the amount of the individual's
wage credits based on employment with the governmental entity during
that quarter.
(4) The department shall adopt rules prescribing the manner in
which benefits shall be charged against the accounts of several
employers for which an individual performed employment during the
same calendar quarter.
(5) This chapter shall not be construed to grant an employer or
an individual in the employer's service, prior claim or right to the
amount paid by the employer into the unemployment compensation fund
either on the employer's own behalf or on behalf of the individual.
(6) Within forty days after the close of each calendar quarter,
the department shall notify each employer of the amount of benefits
charged to the employer's account during that quarter. The
notification shall show the name of each individual to whom benefits
were paid, the individual's social security number, and the amount of
benefits paid to the individual. An employer which has not been
notified as provided in section 96.6, subsection 2, of the allowance
of benefits to an individual, may within thirty days after the date
of mailing of the notification appeal to the department for a hearing
to determine the eligibility of the individual to receive benefits.
The appeal shall be referred to an administrative law judge for
hearing and the employer and the individual shall receive notice of
the time and place of the hearing.
b. (1) If an organization, trade, or business, or a clearly
segregable and identifiable part of an organization, trade, or
business, for which contributions have been paid is sold or
transferred to a subsequent employing unit, or if one or more
employing units have been reorganized or merged into a single
employing unit, and the successor employer, having qualified as an
employer as defined in section 96.19, subsection 16, paragraph
"b", continues to operate the organization, trade, or business,
the successor employer shall assume the position of the predecessor
employer or employers with respect to the predecessors' payrolls,
contributions, accounts, and contribution rates to the same extent as
if no change had taken place in the ownership or control of the
organization, trade, or business. However, the successor employer
shall not assume the position of the predecessor employer or
employers with respect to the predecessor employer's or employers'
payrolls, contributions, accounts, and contribution rates which are
attributable to that part of the organization, trade, or business
transferred, unless the successor employer applies to the department
within ninety days from the date of the partial transfer, and the
succession is approved by the predecessor employer or employers and
the department.
(2) Notwithstanding any other provision of this chapter, if an
employer sells or transfers its organization, trade, or business, or
a portion thereof, to another employer, and at the time of the sale
or transfer, there is substantially common ownership, management, or
control of the two employers, then the unemployment experience
attributable to the sold or transferred organization, trade, or
business shall be transferred to the successor employer. The
transfer of part or all of an employer's workforce to another
employer shall be considered a sale or transfer of the organization,
trade, or business where the predecessor employer no longer operates
the organization, trade, or business with respect to the transferred
workforce and such organization, trade, or business is operated by
the successor employer.
(3) (a) Notwithstanding any other provision of this chapter, if a
person is not an employer at the time such person acquires an
organization, trade, or business of an employer, or a portion
thereof, the unemployment experience of the acquired organization,
trade, or business shall not be transferred to such person if the
department finds such person acquired the organization, trade, or
business solely or primarily for the purpose of obtaining a lower
rate of contribution. Instead, such person shall be assigned the
applicable new employer rate under paragraph "c".
(b) In determining whether an organization, trade, or business or
portion thereof was acquired solely or primarily for the purpose of
obtaining a lower rate of contribution, the department shall use
objective factors which may include the cost of acquiring the
organization, trade, or business; whether the person continued the
acquired organization, trade, or business; how long such
organization, trade, or business was continued; and whether a
substantial number of new employees were hired for performance of
duties unrelated to the organization, trade, or business operated
prior to the acquisition. The department shall establish methods and
procedures to identify the transfer or acquisition of an
organization, trade, or business under this subparagraph (3) and
subparagraph (2).
(4) The predecessor employer, prior to entering into a contract
with a successor employer relating to the sale or transfer of the
organization, trade, or business, or a clearly segregable and
identifiable part of the organization, trade, or business, shall
disclose to the successor employer the predecessor employer's record
of charges of benefits payments and any layoffs or incidences since
the last record that would affect the experience record. A
predecessor employer who fails to disclose or willfully discloses
incorrect information to a successor employer regarding the
predecessor employer's record of charges of benefits payments is
liable to the successor employer for any actual damages and attorney
fees incurred by the successor employer as a result of the
predecessor employer's failure to disclose or disclosure of incorrect
information. The department shall include notice of the requirement
of disclosure in the department's quarterly notification given to
each employer pursuant to paragraph "a", subparagraph (6).
(5) The contribution rate to be assigned to the successor
employer for the period beginning not earlier than the date of the
succession and ending not later than the beginning of the next
following rate year, shall be the contribution rate of the
predecessor employer with respect to the period immediately preceding
the date of the succession, provided the successor employer was not,
prior to the succession, a subject employer, and only one predecessor
employer, or only predecessor employers with identical rates, are
involved. If the predecessor employers' rates are not identical and
the successor employer is not a subject employer prior to the
succession, the department shall assign the successor employer a rate
for the remainder of the rate year by combining the experience of the
predecessor employers. If the successor employer is a subject
employer prior to the succession, the successor employer may elect to
retain the employer's own rate for the remainder of the rate year, or
the successor employer may apply to the department to have the
employer's rate redetermined by combining the employer's experience
with the experience of the predecessor employer or employers.
However, if the successor employer is a subject employer prior to the
succession and has had a partial transfer of the experience of the
predecessor employer or employers approved, then the department shall
recompute the successor employer's rate for the remainder of the rate
year.
c. (1) A nonconstruction contributory employer newly subject
to this chapter shall pay contributions at the rate specified in the
twelfth benefit ratio rank but not less than one percent until the
end of the calendar year in which the employer's account has been
chargeable with benefits for twelve consecutive calendar quarters
immediately preceding the computation date.
(2) A construction contributory employer, as defined under rules
adopted by the department, which is newly subject to this chapter
shall pay contributions at the rate specified in the twenty-first
benefit ratio rank until the end of the calendar year in which the
employer's account has been chargeable with benefits for twelve
consecutive calendar quarters.
(3) Thereafter, the employer's contribution rate shall be
determined in accordance with paragraph "d", except that the
employer's average annual taxable payroll and benefit ratio may be
computed, as determined by the department, for less than five periods
of four consecutive calendar quarters immediately preceding the
computation date.
d. The department shall determine the contribution rate table
to be in effect for the rate year following the computation date, by
determining the ratio of the current reserve fund ratio to the
highest benefit cost ratio on the computation date. On or before the
fifth day of September the department shall make available to
employers the contribution rate table to be in effect for the next
rate year.
(1) The current reserve fund ratio is computed by dividing the
total funds available for payment of benefits, on the computation
date, by the total wages paid in covered employment excluding
reimbursable employment wages during the first four calendar quarters
of the five calendar quarters immediately preceding the computation
date. However, in computing the current reserve fund ratio the
following amounts shall be added to the total funds available for
payment of benefits on the following computation dates:
(a) Twenty million dollars on July 1, 2004.
(b) Seventy million dollars on July 1, 2005.
(c) One hundred twenty million dollars on July 1, 2006.
(d) One hundred fifty million dollars on July 1, 2007, and on
each subsequent computation date.
(2) The highest benefit cost ratio is the highest of the
resulting ratios computed by dividing the total benefits paid,
excluding reimbursable benefits paid, during each consecutive
twelve-month period, during the ten-year period ending on the
computation date, by the total wages, excluding reimbursable
employment wages, paid in the four calendar quarters ending nearest
and prior to the last day of such twelve-month period; however, the
highest benefit cost ratio shall not be less than .02.
If the current reserve fund ratio, divided by the highest benefit
cost ratio:
$KIP$ 1
Equals or But is The contribution rate
exceeds less than table in effect shall be
-- 0.3 1
0.3 0.5 2
0.5 0.7 3
0.7 0.85 4
0.85 1.0 5
1.0 1.15 6
1.15 1.30 7
1.30 -- 8
$KIP$ 1
"Benefit ratio" means a number computed to six decimal places
on July 1 of each year obtained by dividing the average of all
benefits charged to an employer during the five periods of four
consecutive calendar quarters immediately preceding the computation
date by the employer's average annual taxable payroll.
Each employer qualified for an experience rating shall be assigned
a contribution rate for each rate year that corresponds to the
employer's benefit ratio rank in the contribution rate table
effective for the rate year from the following contribution rate
tables. Each employer's benefit ratio rank shall be computed by
listing all the employers by increasing benefit ratios, from the
lowest benefit ratio to the highest benefit ratio and grouping the
employers so listed into twenty-one separate ranks containing as
nearly as possible four and seventy-six hundredths percent of the
total taxable wages, excluding reimbursable employment wages, paid in
covered employment during the four completed calendar quarters
immediately preceding the computation date. If an employer's taxable
wages qualify the employer for two separate benefit ratio ranks the
employer shall be afforded the benefit ratio rank assigned the lower
contribution rate. Employers with identical benefit ratios shall be
assigned to the same benefit ratio rank.
$KIP$ 1
Approximate Contribution Rate Tables
Benefit Cumulative
Ratio Taxable Pay-
Rank roll Limit 1 2 3 4 5 6 7 8
----------------------------------------
1 4.8% 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
2 9.5% 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
3 14.3% 0.1 0.1 0.1 0.1 0.1 0.0 0.0 0.0
4 19.0% 0.4 0.3 0.3 0.2 0.1 0.1 0.1 0.1
5 23.8% 0.6 0.5 0.4 0.3 0.3 0.2 0.1 0.1
6 28.6% 0.9 0.8 0.6 0.5 0.4 0.3 0.2 0.1
7 33.3% 1.2 1.0 0.8 0.6 0.5 0.4 0.3 0.2
8 38.1% 1.5 1.3 1.0 0.8 0.6 0.5 0.3 0.2
9 42.8% 1.9 1.5 1.2 0.9 0.7 0.6 0.4 0.3
10 47.6% 2.1 1.8 1.4 1.1 0.8 0.6 0.5 0.3
11 52.4% 2.5 2.0 1.6 1.3 1.0 0.7 0.5 0.3
12 57.1% 3.0 2.4 1.9 1.5 1.1 0.9 0.6 0.4
13 61.9% 3.6 2.9 2.4 1.8 1.4 1.1 0.8 0.5
14 66.6% 4.4 3.6 2.9 2.2 1.7 1.3 1.0 0.6
15 71.4% 5.3 4.3 3.5 2.7 2.0 1.6 1.1 0.7
16 76.2% 6.3 5.2 4.1 3.2 2.4 1.9 1.4 0.9
17 80.9% 7.0 6.4 5.2 4.0 3.0 2.3 1.7 1.1
18 85.7% 7.5 7.5 7.0 5.4 4.1 3.1 2.3 1.5
19 90.4% 8.0 8.0 8.0 7.3 5.6 4.2 3.1 2.0
20 95.2% 8.5 8.5 8.5 8.0 7.6 5.8 4.3 2.8
21 100.0% 9.0 9.0 9.0 9.0 8.5 8.0 7.5 7.0
$KIP$ 1
e. The department shall fix the contribution rate for each
employer and notify the employer of the rate by regular mail to the
last known address of the employer. An employer may appeal to the
department for a revision of the contribution rate within thirty days
from the date of the notice to the employer. After providing an
opportunity for a hearing, the department may affirm, set aside, or
modify its former determination and may grant the employer a new
contribution rate. The department shall notify the employer of its
decision by regular mail. Judicial review of action of the
department may be sought pursuant to chapter 17A.
If an employer's account has been charged with benefits as the
result of a decision allowing benefits and the decision is reversed,
the employer may appeal, within thirty days from the date of the next
contribution rate notice, for a recomputation of the rate. If
contributions become due at a disputed contribution rate prior to the
employer receiving a decision reversing benefits, the employer shall
pay the contributions at the disputed rate but shall be eligible for
a refund pursuant to section 96.14, subsection 5. If a base period
employer's account has been charged with benefits paid to an employee
at a time when the employee was employed by the base period employer
in the same employment as in the base period, the employer may
appeal, within thirty days from the date of the first notice of the
employer's contribution rate which is based on the charges, for a
recomputation of the rate.
f. If an employer has not filed a contribution and payroll
quarterly report, as required pursuant to section 96.11, subsection
6, for a calendar quarter which precedes the computation date and
upon which the employer's rate of contribution is computed, the
employer's average annual taxable payroll shall be computed by
considering the delinquent quarterly reports as containing zero
taxable wages.
If a delinquent quarterly report is received by September 30
following the computation date the contribution rate shall be
recomputed by using the taxable wages in all the appropriate
quarterly reports on file to determine the average annual taxable
payroll.
If a delinquent quarterly report is received after September 30
following the computation date the contribution rate shall not be
recomputed, unless the rate is appealed in writing to the department
under paragraph "e" and the delinquent quarterly report is also
submitted not later than thirty days after the department notifies
the employer of the rate under paragraph "e".
3. Determination and assessment of contributions.a. As soon as practicable and in any event within two years
after an employer has filed reports, as required pursuant to section
96.11, subsection 6, the department shall examine the reports and
determine the correct amount of contributions due, and the amount so
determined by the department shall be the contributions payable. If
the contributions found due are greater than the amount paid, the
department shall send a notice by certified mail to the employer with
respect to the additional contributions and interest assessed. A
lien shall attach as provided in section 96.14, subsection 3, if the
assessment is not paid or appealed within thirty days of the date of
the notice of assessment.
b. If the department discovers from the examination of the
reports required pursuant to section 96.11, subsection 6, or in some
other manner that wages, or any portion of wages, payable for
employment, have not been listed in the reports, or that reports were
not filed when due, or that reports have been filed showing
contributions due but contributions in fact have not been paid, the
department shall at any time within five years after the time the
reports were due, determine the correct amount of contributions
payable, together with interest and any applicable penalty as
provided in this chapter. The department shall send a notice by
certified mail to the employer of the amount assessed and a lien
shall attach as provided in paragraph "a".
c. The certificate of the department to the effect that
contributions have not been paid, that reports have not been filed,
or that information has not been furnished as required under the
provisions of this chapter, is prima facie evidence of the failure to
pay contributions, file reports, or furnish information.
4. Employer liability determination. The department shall
initially determine all questions relating to the liability of an
employing unit or employer, including the amount of contribution, the
contribution rate, and successorship. A copy of the initial
determination shall be sent by regular mail to the last address,
according to the records of the department, of each affected
employing unit or employer.
The affected employing unit or employer may appeal in writing to
the department from the initial determination. An appeal shall not
be entertained for any reason by the department unless the appeal is
filed with the department within thirty days from the date on which
the initial determination is mailed. If an appeal is not so filed,
the initial determination shall with the expiration of the appeal
period become final and conclusive in all respects and for all
purposes.
A hearing on an appeal shall be conducted according to rules
adopted by the department. A copy of the decision of the
administrative law judge shall be sent by regular mail to the last
address, according to the records of the department, of each affected
employing unit or employer.
The department's decision on the appeal shall be final and
conclusive as to the liability of the employing unit or employer
unless the employing unit or employer files an appeal for judicial
review within thirty days after the date of mailing of the decision
as provided in subsection 5.
5. Judicial review. Notwithstanding chapter 17A, petitions
for judicial review may be filed in the district court of the county
in which the employer resides, or in which the employer's principal
place of business is located, or in the case of a nonresident not
maintaining a place of business in this state either in a county in
which the wages payable for employment were earned or paid or in Polk
county, within thirty days after the date of the notice to the
employer of the department's final determination as provided for in
subsection 2, 3, or 4.
The petitioner shall file with the clerk of the district court a
bond for the use of the respondent, with sureties approved by the
clerk, with any penalty to be fixed and approved by the clerk. The
bond shall not be less than fifty dollars and shall be conditioned on
the petitioner's performance of the orders of the court. In all
other respects, the judicial review shall be in accordance with
chapter 17A.
6. Jeopardy assessments. If the department believes that the
collection of contributions payable or benefits reimbursable will be
jeopardized by delay, the department may immediately make an
assessment of the estimated amount of contributions due or benefits
reimbursable, together with interest and applicable penalty, and
demand payment from the employer. If the payment is not made, the
department may immediately file a lien against the employer which may
be followed by the issuance of a distress warrant.
The department shall be permitted to accept a bond from the
employer to satisfy collection until the amount of contributions due
is determined. The bond shall be in an amount deemed necessary, but
not more than double the amount of the contributions involved, with
securities satisfactory to the department.
7. Financing benefits paid to employees of governmental
entities.a. A governmental entity which is an employer under this
chapter shall pay benefits in a manner provided for a reimbursable
employer unless the governmental entity elects to make contributions
as a contributory employer. The election shall be effective for a
minimum of one calendar year and may be changed if an election is
made to become a reimbursable employer prior to December 1 for a
minimum of the following calendar year.
However, if on the effective date of the election the governmental
entity has a negative balance in its contributory account, the
governmental entity shall pay to the fund within a time period
determined by the department the amount of the negative balance and
shall immediately become liable to reimburse the unemployment
compensation fund for benefits paid in lieu of contributions.
Regular or extended benefits paid after the effective date of the
election, including those based on wages paid while the governmental
entity was a contributory employer, shall be billed to the
governmental entity as a reimbursable employer.
b. A governmental entity electing to make contributions as a
contributory employer, with at least eight consecutive calendar
quarters immediately preceding the computation date throughout which
the employer's account has been chargeable with benefits, shall be
assigned a contribution rate under this paragraph. Contribution
rates shall be assigned by listing all governmental contributory
employers by decreasing percentages of excess from the highest
positive percentage of excess to the highest negative percentage of
excess. The employers so listed shall be grouped into seven separate
percentage of excess ranks each containing as nearly as possible
one-seventh of the total taxable wages of governmental entities
eligible to be assigned a rate under this paragraph.
As used in this subsection, "percentage of excess" means a
number computed to six decimal places on July 1 of each year obtained
by dividing the excess of all contributions attributable to an
employer over the sum of all benefits charged to an employer by the
employer's average annual payroll. An employer's percentage of
excess is a positive number when the total of all contributions paid
to an employer's account for all past periods to and including those
for the quarter immediately preceding the rate computation date
exceeds the total benefits charged to such account for the same
period. An employer's percentage of excess is a negative number when
the total of all contributions paid to an employer's account for all
past periods to and including those for the quarter immediately
preceding the rate computation date is less than the total benefits
charged to such account for the same period.
As used in this subsection, "average annual taxable payroll"
means the average of the total amount of taxable wages paid by an
employer for insured work during the three periods of four
consecutive calendar quarters immediately preceding the computation
date. However, for an employer which qualifies on any computation
date for a computed rate on the basis of less than twelve consecutive
calendar quarters of chargeability immediately preceding the
computation date, "average annual taxable payroll" means the
average of the employer's total amount of taxable wages for the two
periods of four consecutive calendar quarters immediately preceding
the computation date.
The department shall annually calculate a base rate for each
calendar year. The base rate is equal to the sum of the benefits
charged to governmental contributory employers in the calendar year
immediately preceding the computation date plus or minus the
difference between the total benefits and contributions paid by
governmental contributory employers since January 1, 1980, which sum
is divided by the total taxable wages reported by governmental
contributory employers during the calendar year immediately preceding
the computation date, rounded to the next highest one-tenth of one
percent. Excess contributions from the years 1978 and 1979 shall be
used to offset benefits paid in any calendar year where total
benefits exceed total contributions of governmental contributory
employers. The contribution rate as a percentage of taxable wages of
the employer shall be assigned as follows:
$KIP$ 1
If the The contribution Approximate
percentage rate shall be: cumulative
of excess taxable
rank is: payroll
1 Base Rate--0.9 14.3
2 Base Rate--0.6 28.6
3 Base Rate--0.3 42.9
4 Base Rate 57.2
5 Base Rate + 0.3 71.5
6 Base Rate + 0.6 85.8
7 Base Rate + 0.9 100.0
If a governmental contributory employer is grouped into two
separate percentage of excess ranks, the employer shall be assigned
the lower contribution rate of the two percentage of excess ranks.
Notwithstanding the provisions of this paragraph, a governmental
contributory employer shall not be assigned a contribution rate less
than one-tenth of one percent of taxable wages unless the employer
has a positive percentage of excess greater than five percent.
Governmental entities electing to be contributory employers which
are not eligible to be assigned a contribution rate under this
paragraph shall be assigned the base rate as a contribution rate for
the calendar year.
c. For the purposes of this subsection, "governmental
reimbursable employer" means an employer which makes payments to
the department for the unemployment compensation fund in an amount
equal to the regular and extended benefits paid, which are based on
wages paid for service in the employ of the employer. Benefits paid
to an eligible individual shall be charged against the base period
employers in the inverse chronological order in which the employment
of the individual occurred. However, the amount of benefits charged
against an employer for a calendar quarter of the base period shall
not exceed the amount of the individual's wage credits based upon
employment with that employer during that quarter. At the end of
each calendar quarter, the department shall bill each governmental
reimbursable employer for benefits paid during that quarter.
Payments by a governmental reimbursable employer shall be made in
accordance with subsection 8, paragraph "b", subparagraphs (2)
through (5).
d. A state agency, board, commission, or department, except a
state board of regents institution, shall, after approval of the
billing for a governmental reimbursable employer as provided in
subsection 8, paragraph "b", submit the billing to the director
of the department of administrative services. The director of the
department of administrative services shall pay the approved billing
out of any funds in the state treasury not otherwise appropriated. A
state agency, board, commission, or department shall reimburse the
director of the department of administrative services out of any
revolving, special, trust, or federal fund from which all or a
portion of the billing can be paid, for payments made by the director
of the department of administrative services on behalf of the agency,
board, commission, or department.
e. If the entire enterprise or business of a reimbursable
governmental entity is sold or otherwise transferred to a subsequent
employing unit and the acquiring employing unit continues to operate
the enterprise or business, the acquiring employing unit shall assume
the position of the reimbursable governmental entity with respect to
the reimbursable governmental entity's liability to pay the
department for reimbursable benefits based on the governmental
entity's payroll to the same extent as if no change in the ownership
or control of the enterprise or business had occurred, whether or not
the acquiring employing unit elected or elects, or was or is eligible
to elect, to become a reimbursable employer with respect to the
acquiring employing unit's own payroll prior to or after the
acquisition of the governmental entity's enterprise or business.
f. If a reimbursable instrumentality of the state or of a
political subdivision is discontinued other than by sale or transfer
to a subsequent employing unit as described in paragraph "e", the
state or the political subdivision, respectively, shall reimburse the
department for benefits paid to former employees of the
instrumentality after the instrumentality is discontinued.
8. Financing benefits paid to employees of nonprofit
organizations.a. A nonprofit organization which is, or becomes, subject to
this chapter, shall pay contributions under subsections 1 and 2,
unless the nonprofit organization elects, in accordance with this
paragraph, to reimburse the unemployment compensation fund for
benefits paid in an amount equal to the amount of regular benefits
and of one-half of the extended benefits paid, which are based on
wages paid for service in the employ of the nonprofit organization
during the effective period of the election.
(1) A nonprofit organization may elect to become a reimbursable
employer for a period of not less than two calendar years by filing
with the department a written notice of its election not later than
thirty days prior to the beginning of the calendar year for which the
election is to be effective.
(2) A nonprofit organization which makes an election in
accordance with subparagraph (1) shall continue to be a reimbursable
employer until the nonprofit organization files with the department a
written notice terminating its election not later than thirty days
prior to the beginning of the calendar year for which the termination
is to be effective.
(3) The department may for good cause extend the period within
which a notice of election or termination of election must be filed
and may permit an election or termination of election to be
retroactive.
(4) The department, in accordance with rules, shall notify each
nonprofit organization of any determination made by the department of
the status of the nonprofit organization as an employer and of the
effective date of any election or termination of election. A
determination is subject to appeal and review in accordance with
subsections 4 and 5.
b. Reimbursements for benefits paid in lieu of contributions
shall be made in accordance with the following:
(1) At the end of each calendar quarter, the department shall
bill each nonprofit organization which has elected to reimburse the
unemployment compensation fund for benefits paid in an amount equal
to the full amount of regular benefits and one-half of the amount of
extended benefits paid during the quarter which are based on wages
paid for service in the employ of the organization. Benefits paid to
an individual shall be charged against the base period employers in
the inverse chronological order in which the employment of the
individual occurred. However, the amount of benefits charged against
an employer for a calendar quarter of the base period shall not
exceed the amount of the individual's wage credits based upon
employment with that employer during that quarter.
(2) The nonprofit organization shall pay the bill not later than
thirty days after the bill was mailed or otherwise delivered to the
last known address of the nonprofit organization, unless the
nonprofit organization has filed an application for redetermination
in accordance with subparagraph (4).
(3) Reimbursements made by a nonprofit organization shall not be
deducted, in whole or in part, from the wages of individuals in the
employ of the nonprofit organization.
(4) The amount due specified in a bill from the department is
conclusive unless, not later than fifteen days following the date the
bill was mailed or otherwise delivered to the last known address of
the nonprofit organization, the nonprofit organization files an
application for redetermination with the department setting forth the
grounds for the application. The department shall promptly review
the amount due specified in the bill and shall issue a
redetermination. The redetermination is conclusive on the nonprofit
organization unless, not later than thirty days after the
redetermination was mailed or otherwise delivered to the last known
address of the nonprofit organization, the nonprofit organization
files an appeal to the district court pursuant to subsection 5.
(5) The provisions for collection of contributions under section
96.14 are applicable to reimbursements for benefits paid in lieu of
contributions.
(6) If the entire enterprise or business of a reimbursable
nonprofit organization is sold or otherwise transferred to a
subsequent employing unit and the acquiring employing unit continues
to operate the enterprise or business, the acquiring employing unit
shall assume the position of the reimbursable nonprofit organization
with respect to the nonprofit organization's liability to pay the
department for reimbursable benefits based on the nonprofit
organization's payroll to the same extent as if no change in the
ownership or control of the enterprise or business had occurred,
whether or not the acquiring employing unit elected or elects, or was
or is eligible to elect, to become a reimbursable employer with
respect to the acquiring employing unit's own payroll prior to or
after the acquisition of the nonprofit organization's enterprise or
business.
9. Indian tribes.a. For purposes of this chapter, employment by an Indian
tribe shall be covered in the same manner and terms as provided for
governmental entities and the same exclusions that are applicable for
governmental entities shall also apply.
b. In financing benefits paid to employees of an Indian tribe
under this chapter, a contribution rate shall be determined and
contributions shall be assessed and collected from an Indian tribe in
the same manner provided in this chapter for contributory employers,
except that an Indian tribe shall have the option of electing to
become a governmental reimbursable employer. An Indian tribe shall
have the option to make a separate election as provided in this
paragraph for itself and for each subdivision, subsidiary, or
business enterprise wholly owned by the Indian tribe. The
reimbursable status of an Indian tribe shall be in the same manner,
to the same extent, and on the same terms as are applicable to all
governmental reimbursable employers under this chapter.
c. If the department determines that an Indian tribe has
failed to make any payment required pursuant to this chapter after
providing the Indian tribe with ninety days' notice of this failure,
the department may issue a determination that ceases coverage of all
employment by that Indian tribe until such time as all payments are
received by the department.
10. Group accounts. Two or more nonprofit organizations or
two or more governmental entities which have become reimbursable
employers in accordance with subsection 7 or subsection 8, paragraph
"a", 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 which are attributable to service in the employ of
the employers. The application shall 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 department shall
establish a group account for the employers effective as of the
beginning of the calendar quarter in which the department receives
the application and shall notify the group's agent of the effective
date of the account. The account shall remain in effect for not less
than one year until terminated at the discretion of the department or
upon application by the group. Upon establishment of the account,
each employer member of the group shall be liable for benefit
reimbursements in lieu of contributions with respect to each calendar
quarter in an amount which bears the same ratio to the total benefits
paid in the quarter which are attributable to service performed in
the employ of all members of the group, as the total wages paid for
service performed in the employ of the member in the quarter bear to
the total wages paid for service performed in the employ of all
members of the group in the quarter. The department shall adopt
rules with respect to applications for establishment, maintenance,
and termination of group accounts, for addition of new members to,
and withdrawal of active members from group accounts, and for the
determination of the amounts which are payable by members of the
group and the time and manner of the payments.
11. Temporary emergency surcharge. If on the first day of
the third month in any calendar quarter, the department has an
outstanding balance of interest accrued on advance moneys received
from the federal government for the payment of unemployment
compensation benefits, or is projected to have an outstanding balance
of accruing federal interest for that calendar quarter, the
department shall collect a uniform temporary emergency surcharge for
that calendar quarter, retroactive to the beginning of that calendar
quarter. The surcharge shall be a percentage of employer
contribution rates and shall be set at a uniform percentage, for all
employers subject to the surcharge, necessary to pay the interest
accrued on the moneys advanced to the department by the federal
government, and to pay any additional federal interest which will
accrue for the remainder of that calendar quarter. The surcharge
shall apply to all employers except governmental entities, nonprofit
organizations, and employers assigned a zero contribution rate. The
department shall adopt rules prescribing the manner in which the
surcharge will be collected. Interest shall accrue on all unpaid
surcharges under this subsection at the same rate as on regular
contributions and shall be collectible in the same manner. The
surcharge shall not affect the computation of regular contributions
under this chapter.
A special fund to be known as the temporary emergency surcharge
fund is created in the state treasury. The special fund is separate
and distinct from the unemployment compensation fund. All
contributions collected from the temporary emergency surcharge shall
be deposited in the special fund. The special fund shall be used
only to pay interest accruing on advance moneys received from the
federal government for the payment of unemployment compensation
benefits. Interest earned upon moneys in the special fund shall be
deposited in and credited to the special fund.
If the department determines on June 1 that no outstanding balance
of interest due has accrued on advanced moneys received from the
federal government for the payment of unemployment compensation
benefits, and that no outstanding balance is projected to accrue for
the remainder of the calendar year, the department shall notify the
treasurer of state of its determination. The treasurer of state
shall immediately transfer all moneys, including accrued interest, in
the temporary emergency surcharge fund to the unemployment
compensation fund for the payment of benefits.
2004 implementation of July 1, 2003, repeal of subsection 12
applies to contribution rates for and after calendar year 2004, see
§96.7, subsection 12, Code 2003
96.7 EMPLOYER CONTRIBUTIONS AND REIMBURSEMENTS.
1. Payment. Contributions accrue and are payable, in
accordance with rules adopted by the department, on all taxable wages
paid by an employer for insured work.
2. Contribution rates based on benefit experience.a. (1) The department shall maintain a separate account for
each employer and shall credit each employer's account with all
contributions which the employer has paid or which have been paid on
the employer's behalf.
(2) The amount of regular benefits plus fifty percent of the
amount of extended benefits paid to an eligible individual shall be
charged against the account of the employers in the base period in
the inverse chronological order in which the employment of the
individual occurred.
(a) However, if the individual to whom the benefits are paid is
in the employ of a base period employer at the time the individual is
receiving the benefits, and the individual is receiving the same
employment from the employer that the individual received during the
individual's base period, benefits paid to the individual shall not
be charged against the account of the employer. This provision
applies to both contributory and reimbursable employers,
notwithstanding subparagraph (3) and section 96.8, subsection 5.
(b) An employer's account shall not be charged with benefits paid
to an individual who left the work of the employer voluntarily
without good cause attributable to the employer or to an individual
who was discharged for misconduct in connection with the individual's
employment, or to an individual who failed without good cause, either
to apply for available, suitable work or to accept suitable work with
that employer, but shall be charged to the unemployment compensation
fund. This paragraph applies to both contributory and reimbursable
employers, notwithstanding section 96.8, subsection 5.
(c) The amount of benefits paid to an individual, which is solely
due to wage credits considered to be in an individual's base period
due to the exclusion and substitution of calendar quarters from the
individual's base period under section 96.23, shall be charged
against the account of the employer responsible for paying the
workers' compensation benefits for temporary total disability or
during a healing period under section 85.33, section 85.34,
subsection 1, or section 85A.17, or responsible for paying indemnity
insurance benefits.
(d) The account of an employer shall not be charged with benefits
paid to an individual for unemployment that is directly caused by a
major natural disaster declared by the president of the United
States, pursuant to the federal Disaster Relief Act of 1974, if the
individual would have been eligible for federal disaster unemployment
assistance benefits with respect to that unemployment but for the
individual's receipt of regular benefits.
(e) The account of an employer shall not be charged with benefits
paid to an individual who is laid off if the benefits are paid as the
result of the return to work of a permanent employee who is one of
the following:
(i) A member of the national guard or organized reserves of the
armed forces of the United States ordered to temporary duty, as
defined in section 29A.1, subsection 3, 11, or 12, for any purpose,
who has completed the duty as evidenced in accordance with section
29A.43.
(ii) A member of the civil air patrol performing duty pursuant to
section 29A.3A, who has completed the duty as evidenced in accordance
with section 29A.43.
(3) The amount of regular benefits charged against the account of
an employer for a calendar quarter of the base period shall not
exceed the amount of the individual's wage credits based on
employment with the employer during that quarter. The amount of
extended benefits charged against the account of an employer for a
calendar quarter of the base period shall not exceed an additional
fifty percent of the amount of the individual's wage credits based on
employment with the employer during that quarter. However, the
amount of extended benefits charged against the account of a
governmental entity which is either a reimbursable or contributory
employer, for a calendar quarter of the base period shall not exceed
an additional one hundred percent of the amount of the individual's
wage credits based on employment with the governmental entity during
that quarter.
(4) The department shall adopt rules prescribing the manner in
which benefits shall be charged against the accounts of several
employers for which an individual performed employment during the
same calendar quarter.
(5) This chapter shall not be construed to grant an employer or
an individual in the employer's service, prior claim or right to the
amount paid by the employer into the unemployment compensation fund
either on the employer's own behalf or on behalf of the individual.
(6) Within forty days after the close of each calendar quarter,
the department shall notify each employer of the amount of benefits
charged to the employer's account during that quarter. The
notification shall show the name of each individual to whom benefits
were paid, the individual's social security number, and the amount of
benefits paid to the individual. An employer which has not been
notified as provided in section 96.6, subsection 2, of the allowance
of benefits to an individual, may within thirty days after the date
of mailing of the notification appeal to the department for a hearing
to determine the eligibility of the individual to receive benefits.
The appeal shall be referred to an administrative law judge for
hearing and the employer and the individual shall receive notice of
the time and place of the hearing.
b. (1) If an organization, trade, or business, or a clearly
segregable and identifiable part of an organization, trade, or
business, for which contributions have been paid is sold or
transferred to a subsequent employing unit, or if one or more
employing units have been reorganized or merged into a single
employing unit, and the successor employer, having qualified as an
employer as defined in section 96.19, subsection 16, paragraph
"b", continues to operate the organization, trade, or business,
the successor employer shall assume the position of the predecessor
employer or employers with respect to the predecessors' payrolls,
contributions, accounts, and contribution rates to the same extent as
if no change had taken place in the ownership or control of the
organization, trade, or business. However, the successor employer
shall not assume the position of the predecessor employer or
employers with respect to the predecessor employer's or employers'
payrolls, contributions, accounts, and contribution rates which are
attributable to that part of the organization, trade, or business
transferred, unless the successor employer applies to the department
within ninety days from the date of the partial transfer, and the
succession is approved by the predecessor employer or employers and
the department.
(2) Notwithstanding any other provision of this chapter, if an
employer sells or transfers its organization, trade, or business, or
a portion thereof, to another employer, and at the time of the sale
or transfer, there is substantially common ownership, management, or
control of the two employers, then the unemployment experience
attributable to the sold or transferred organization, trade, or
business shall be transferred to the successor employer. The
transfer of part or all of an employer's workforce to another
employer shall be considered a sale or transfer of the organization,
trade, or business where the predecessor employer no longer operates
the organization, trade, or business with respect to the transferred
workforce and such organization, trade, or business is operated by
the successor employer.
(3) (a) Notwithstanding any other provision of this chapter, if a
person is not an employer at the time such person acquires an
organization, trade, or business of an employer, or a portion
thereof, the unemployment experience of the acquired organization,
trade, or business shall not be transferred to such person if the
department finds such person acquired the organization, trade, or
business solely or primarily for the purpose of obtaining a lower
rate of contribution. Instead, such person shall be assigned the
applicable new employer rate under paragraph "c".
(b) In determining whether an organization, trade, or business or
portion thereof was acquired solely or primarily for the purpose of
obtaining a lower rate of contribution, the department shall use
objective factors which may include the cost of acquiring the
organization, trade, or business; whether the person continued the
acquired organization, trade, or business; how long such
organization, trade, or business was continued; and whether a
substantial number of new employees were hired for performance of
duties unrelated to the organization, trade, or business operated
prior to the acquisition. The department shall establish methods and
procedures to identify the transfer or acquisition of an
organization, trade, or business under this subparagraph (3) and
subparagraph (2).
(4) The predecessor employer, prior to entering into a contract
with a successor employer relating to the sale or transfer of the
organization, trade, or business, or a clearly segregable and
identifiable part of the organization, trade, or business, shall
disclose to the successor employer the predecessor employer's record
of charges of benefits payments and any layoffs or incidences since
the last record that would affect the experience record. A
predecessor employer who fails to disclose or willfully discloses
incorrect information to a successor employer regarding the
predecessor employer's record of charges of benefits payments is
liable to the successor employer for any actual damages and attorney
fees incurred by the successor employer as a result of the
predecessor employer's failure to disclose or disclosure of incorrect
information. The department shall include notice of the requirement
of disclosure in the department's quarterly notification given to
each employer pursuant to paragraph "a", subparagraph (6).
(5) The contribution rate to be assigned to the successor
employer for the period beginning not earlier than the date of the
succession and ending not later than the beginning of the next
following rate year, shall be the contribution rate of the
predecessor employer with respect to the period immediately preceding
the date of the succession, provided the successor employer was not,
prior to the succession, a subject employer, and only one predecessor
employer, or only predecessor employers with identical rates, are
involved. If the predecessor employers' rates are not identical and
the successor employer is not a subject employer prior to the
succession, the department shall assign the successor employer a rate
for the remainder of the rate year by combining the experience of the
predecessor employers. If the successor employer is a subject
employer prior to the succession, the successor employer may elect to
retain the employer's own rate for the remainder of the rate year, or
the successor employer may apply to the department to have the
employer's rate redetermined by combining the employer's experience
with the experience of the predecessor employer or employers.
However, if the successor employer is a subject employer prior to the
succession and has had a partial transfer of the experience of the
predecessor employer or employers approved, then the department shall
recompute the successor employer's rate for the remainder of the rate
year.
c. (1) A nonconstruction contributory employer newly subject
to this chapter shall pay contributions at the rate specified in the
twelfth benefit ratio rank but not less than one percent until the
end of the calendar year in which the employer's account has been
chargeable with benefits for twelve consecutive calendar quarters
immediately preceding the computation date.
(2) A construction contributory employer, as defined under rules
adopted by the department, which is newly subject to this chapter
shall pay contributions at the rate specified in the twenty-first
benefit ratio rank until the end of the calendar year in which the
employer's account has been chargeable with benefits for twelve
consecutive calendar quarters.
(3) Thereafter, the employer's contribution rate shall be
determined in accordance with paragraph "d", except that the
employer's average annual taxable payroll and benefit ratio may be
computed, as determined by the department, for less than five periods
of four consecutive calendar quarters immediately preceding the
computation date.
d. The department shall determine the contribution rate table
to be in effect for the rate year following the computation date, by
determining the ratio of the current reserve fund ratio to the
highest benefit cost ratio on the computation date. On or before the
fifth day of September the department shall make available to
employers the contribution rate table to be in effect for the next
rate year.
(1) The current reserve fund ratio is computed by dividing the
total funds available for payment of benefits, on the computation
date, by the total wages paid in covered employment excluding
reimbursable employment wages during the first four calendar quarters
of the five calendar quarters immediately preceding the computation
date. However, in computing the current reserve fund ratio the
following amounts shall be added to the total funds available for
payment of benefits on the following computation dates:
(a) Twenty million dollars on July 1, 2004.
(b) Seventy million dollars on July 1, 2005.
(c) One hundred twenty million dollars on July 1, 2006.
(d) One hundred fifty million dollars on July 1, 2007, and on
each subsequent computation date.
(2) The highest benefit cost ratio is the highest of the
resulting ratios computed by dividing the total benefits paid,
excluding reimbursable benefits paid, during each consecutive
twelve-month period, during the ten-year period ending on the
computation date, by the total wages, excluding reimbursable
employment wages, paid in the four calendar quarters ending nearest
and prior to the last day of such twelve-month period; however, the
highest benefit cost ratio shall not be less than .02.
If the current reserve fund ratio, divided by the highest benefit
cost ratio:
$KIP$ 1
Equals or But is The contribution rate
exceeds less than table in effect shall be
-- 0.3 1
0.3 0.5 2
0.5 0.7 3
0.7 0.85 4
0.85 1.0 5
1.0 1.15 6
1.15 1.30 7
1.30 -- 8
$KIP$ 1
"Benefit ratio" means a number computed to six decimal places
on July 1 of each year obtained by dividing the average of all
benefits charged to an employer during the five periods of four
consecutive calendar quarters immediately preceding the computation
date by the employer's average annual taxable payroll.
Each employer qualified for an experience rating shall be assigned
a contribution rate for each rate year that corresponds to the
employer's benefit ratio rank in the contribution rate table
effective for the rate year from the following contribution rate
tables. Each employer's benefit ratio rank shall be computed by
listing all the employers by increasing benefit ratios, from the
lowest benefit ratio to the highest benefit ratio and grouping the
employers so listed into twenty-one separate ranks containing as
nearly as possible four and seventy-six hundredths percent of the
total taxable wages, excluding reimbursable employment wages, paid in
covered employment during the four completed calendar quarters
immediately preceding the computation date. If an employer's taxable
wages qualify the employer for two separate benefit ratio ranks the
employer shall be afforded the benefit ratio rank assigned the lower
contribution rate. Employers with identical benefit ratios shall be
assigned to the same benefit ratio rank.
$KIP$ 1
Approximate Contribution Rate Tables
Benefit Cumulative
Ratio Taxable Pay-
Rank roll Limit 1 2 3 4 5 6 7 8
----------------------------------------
1 4.8% 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
2 9.5% 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
3 14.3% 0.1 0.1 0.1 0.1 0.1 0.0 0.0 0.0
4 19.0% 0.4 0.3 0.3 0.2 0.1 0.1 0.1 0.1
5 23.8% 0.6 0.5 0.4 0.3 0.3 0.2 0.1 0.1
6 28.6% 0.9 0.8 0.6 0.5 0.4 0.3 0.2 0.1
7 33.3% 1.2 1.0 0.8 0.6 0.5 0.4 0.3 0.2
8 38.1% 1.5 1.3 1.0 0.8 0.6 0.5 0.3 0.2
9 42.8% 1.9 1.5 1.2 0.9 0.7 0.6 0.4 0.3
10 47.6% 2.1 1.8 1.4 1.1 0.8 0.6 0.5 0.3
11 52.4% 2.5 2.0 1.6 1.3 1.0 0.7 0.5 0.3
12 57.1% 3.0 2.4 1.9 1.5 1.1 0.9 0.6 0.4
13 61.9% 3.6 2.9 2.4 1.8 1.4 1.1 0.8 0.5
14 66.6% 4.4 3.6 2.9 2.2 1.7 1.3 1.0 0.6
15 71.4% 5.3 4.3 3.5 2.7 2.0 1.6 1.1 0.7
16 76.2% 6.3 5.2 4.1 3.2 2.4 1.9 1.4 0.9
17 80.9% 7.0 6.4 5.2 4.0 3.0 2.3 1.7 1.1
18 85.7% 7.5 7.5 7.0 5.4 4.1 3.1 2.3 1.5
19 90.4% 8.0 8.0 8.0 7.3 5.6 4.2 3.1 2.0
20 95.2% 8.5 8.5 8.5 8.0 7.6 5.8 4.3 2.8
21 100.0% 9.0 9.0 9.0 9.0 8.5 8.0 7.5 7.0
$KIP$ 1
e. The department shall fix the contribution rate for each
employer and notify the employer of the rate by regular mail to the
last known address of the employer. An employer may appeal to the
department for a revision of the contribution rate within thirty days
from the date of the notice to the employer. After providing an
opportunity for a hearing, the department may affirm, set aside, or
modify its former determination and may grant the employer a new
contribution rate. The department shall notify the employer of its
decision by regular mail. Judicial review of action of the
department may be sought pursuant to chapter 17A.
If an employer's account has been charged with benefits as the
result of a decision allowing benefits and the decision is reversed,
the employer may appeal, within thirty days from the date of the next
contribution rate notice, for a recomputation of the rate. If
contributions become due at a disputed contribution rate prior to the
employer receiving a decision reversing benefits, the employer shall
pay the contributions at the disputed rate but shall be eligible for
a refund pursuant to section 96.14, subsection 5. If a base period
employer's account has been charged with benefits paid to an employee
at a time when the employee was employed by the base period employer
in the same employment as in the base period, the employer may
appeal, within thirty days from the date of the first notice of the
employer's contribution rate which is based on the charges, for a
recomputation of the rate.
f. If an employer has not filed a contribution and payroll
quarterly report, as required pursuant to section 96.11, subsection
6, for a calendar quarter which precedes the computation date and
upon which the employer's rate of contribution is computed, the
employer's average annual taxable payroll shall be computed by
considering the delinquent quarterly reports as containing zero
taxable wages.
If a delinquent quarterly report is received by September 30
following the computation date the contribution rate shall be
recomputed by using the taxable wages in all the appropriate
quarterly reports on file to determine the average annual taxable
payroll.
If a delinquent quarterly report is received after September 30
following the computation date the contribution rate shall not be
recomputed, unless the rate is appealed in writing to the department
under paragraph "e" and the delinquent quarterly report is also
submitted not later than thirty days after the department notifies
the employer of the rate under paragraph "e".
3. Determination and assessment of contributions.a. As soon as practicable and in any event within two years
after an employer has filed reports, as required pursuant to section
96.11, subsection 6, the department shall examine the reports and
determine the correct amount of contributions due, and the amount so
determined by the department shall be the contributions payable. If
the contributions found due are greater than the amount paid, the
department shall send a notice by certified mail to the employer with
respect to the additional contributions and interest assessed. A
lien shall attach as provided in section 96.14, subsection 3, if the
assessment is not paid or appealed within thirty days of the date of
the notice of assessment.
b. If the department discovers from the examination of the
reports required pursuant to section 96.11, subsection 6, or in some
other manner that wages, or any portion of wages, payable for
employment, have not been listed in the reports, or that reports were
not filed when due, or that reports have been filed showing
contributions due but contributions in fact have not been paid, the
department shall at any time within five years after the time the
reports were due, determine the correct amount of contributions
payable, together with interest and any applicable penalty as
provided in this chapter. The department shall send a notice by
certified mail to the employer of the amount assessed and a lien
shall attach as provided in paragraph "a".
c. The certificate of the department to the effect that
contributions have not been paid, that reports have not been filed,
or that information has not been furnished as required under the
provisions of this chapter, is prima facie evidence of the failure to
pay contributions, file reports, or furnish information.
4. Employer liability determination. The department shall
initially determine all questions relating to the liability of an
employing unit or employer, including the amount of contribution, the
contribution rate, and successorship. A copy of the initial
determination shall be sent by regular mail to the last address,
according to the records of the department, of each affected
employing unit or employer.
The affected employing unit or employer may appeal in writing to
the department from the initial determination. An appeal shall not
be entertained for any reason by the department unless the appeal is
filed with the department within thirty days from the date on which
the initial determination is mailed. If an appeal is not so filed,
the initial determination shall with the expiration of the appeal
period become final and conclusive in all respects and for all
purposes.
A hearing on an appeal shall be conducted according to rules
adopted by the department. A copy of the decision of the
administrative law judge shall be sent by regular mail to the last
address, according to the records of the department, of each affected
employing unit or employer.
The department's decision on the appeal shall be final and
conclusive as to the liability of the employing unit or employer
unless the employing unit or employer files an appeal for judicial
review within thirty days after the date of mailing of the decision
as provided in subsection 5.
5. Judicial review. Notwithstanding chapter 17A, petitions
for judicial review may be filed in the district court of the county
in which the employer resides, or in which the employer's principal
place of business is located, or in the case of a nonresident not
maintaining a place of business in this state either in a county in
which the wages payable for employment were earned or paid or in Polk
county, within thirty days after the date of the notice to the
employer of the department's final determination as provided for in
subsection 2, 3, or 4.
The petitioner shall file with the clerk of the district court a
bond for the use of the respondent, with sureties approved by the
clerk, with any penalty to be fixed and approved by the clerk. The
bond shall not be less than fifty dollars and shall be conditioned on
the petitioner's performance of the orders of the court. In all
other respects, the judicial review shall be in accordance with
chapter 17A.
6. Jeopardy assessments. If the department believes that the
collection of contributions payable or benefits reimbursable will be
jeopardized by delay, the department may immediately make an
assessment of the estimated amount of contributions due or benefits
reimbursable, together with interest and applicable penalty, and
demand payment from the employer. If the payment is not made, the
department may immediately file a lien against the employer which may
be followed by the issuance of a distress warrant.
The department shall be permitted to accept a bond from the
employer to satisfy collection until the amount of contributions due
is determined. The bond shall be in an amount deemed necessary, but
not more than double the amount of the contributions involved, with
securities satisfactory to the department.
7. Financing benefits paid to employees of governmental
entities.a. A governmental entity which is an employer under this
chapter shall pay benefits in a manner provided for a reimbursable
employer unless the governmental entity elects to make contributions
as a contributory employer. The election shall be effective for a
minimum of one calendar year and may be changed if an election is
made to become a reimbursable employer prior to December 1 for a
minimum of the following calendar year.
However, if on the effective date of the election the governmental
entity has a negative balance in its contributory account, the
governmental entity shall pay to the fund within a time period
determined by the department the amount of the negative balance and
shall immediately become liable to reimburse the unemployment
compensation fund for benefits paid in lieu of contributions.
Regular or extended benefits paid after the effective date of the
election, including those based on wages paid while the governmental
entity was a contributory employer, shall be billed to the
governmental entity as a reimbursable employer.
b. A governmental entity electing to make contributions as a
contributory employer, with at least eight consecutive calendar
quarters immediately preceding the computation date throughout which
the employer's account has been chargeable with benefits, shall be
assigned a contribution rate under this paragraph. Contribution
rates shall be assigned by listing all governmental contributory
employers by decreasing percentages of excess from the highest
positive percentage of excess to the highest negative percentage of
excess. The employers so listed shall be grouped into seven separate
percentage of excess ranks each containing as nearly as possible
one-seventh of the total taxable wages of governmental entities
eligible to be assigned a rate under this paragraph.
As used in this subsection, "percentage of excess" means a
number computed to six decimal places on July 1 of each year obtained
by dividing the excess of all contributions attributable to an
employer over the sum of all benefits charged to an employer by the
employer's average annual payroll. An employer's percentage of
excess is a positive number when the total of all contributions paid
to an employer's account for all past periods to and including those
for the quarter immediately preceding the rate computation date
exceeds the total benefits charged to such account for the same
period. An employer's percentage of excess is a negative number when
the total of all contributions paid to an employer's account for all
past periods to and including those for the quarter immediately
preceding the rate computation date is less than the total benefits
charged to such account for the same period.
As used in this subsection, "average annual taxable payroll"
means the average of the total amount of taxable wages paid by an
employer for insured work during the three periods of four
consecutive calendar quarters immediately preceding the computation
date. However, for an employer which qualifies on any computation
date for a computed rate on the basis of less than twelve consecutive
calendar quarters of chargeability immediately preceding the
computation date, "average annual taxable payroll" means the
average of the employer's total amount of taxable wages for the two
periods of four consecutive calendar quarters immediately preceding
the computation date.
The department shall annually calculate a base rate for each
calendar year. The base rate is equal to the sum of the benefits
charged to governmental contributory employers in the calendar year
immediately preceding the computation date plus or minus the
difference between the total benefits and contributions paid by
governmental contributory employers since January 1, 1980, which sum
is divided by the total taxable wages reported by governmental
contributory employers during the calendar year immediately preceding
the computation date, rounded to the next highest one-tenth of one
percent. Excess contributions from the years 1978 and 1979 shall be
used to offset benefits paid in any calendar year where total
benefits exceed total contributions of governmental contributory
employers. The contribution rate as a percentage of taxable wages of
the employer shall be assigned as follows:
$KIP$ 1
If the The contribution Approximate
percentage rate shall be: cumulative
of excess taxable
rank is: payroll
1 Base Rate--0.9 14.3
2 Base Rate--0.6 28.6
3 Base Rate--0.3 42.9
4 Base Rate 57.2
5 Base Rate + 0.3 71.5
6 Base Rate + 0.6 85.8
7 Base Rate + 0.9 100.0
If a governmental contributory employer is grouped into two
separate percentage of excess ranks, the employer shall be assigned
the lower contribution rate of the two percentage of excess ranks.
Notwithstanding the provisions of this paragraph, a governmental
contributory employer shall not be assigned a contribution rate less
than one-tenth of one percent of taxable wages unless the employer
has a positive percentage of excess greater than five percent.
Governmental entities electing to be contributory employers which
are not eligible to be assigned a contribution rate under this
paragraph shall be assigned the base rate as a contribution rate for
the calendar year.
c. For the purposes of this subsection, "governmental
reimbursable employer" means an employer which makes payments to
the department for the unemployment compensation fund in an amount
equal to the regular and extended benefits paid, which are based on
wages paid for service in the employ of the employer. Benefits paid
to an eligible individual shall be charged against the base period
employers in the inverse chronological order in which the employment
of the individual occurred. However, the amount of benefits charged
against an employer for a calendar quarter of the base period shall
not exceed the amount of the individual's wage credits based upon
employment with that employer during that quarter. At the end of
each calendar quarter, the department shall bill each governmental
reimbursable employer for benefits paid during that quarter.
Payments by a governmental reimbursable employer shall be made in
accordance with subsection 8, paragraph "b", subparagraphs (2)
through (5).
d. A state agency, board, commission, or department, except a
state board of regents institution, shall, after approval of the
billing for a governmental reimbursable employer as provided in
subsection 8, paragraph "b", submit the billing to the director
of the department of administrative services. The director of the
department of administrative services shall pay the approved billing
out of any funds in the state treasury not otherwise appropriated. A
state agency, board, commission, or department shall reimburse the
director of the department of administrative services out of any
revolving, special, trust, or federal fund from which all or a
portion of the billing can be paid, for payments made by the director
of the department of administrative services on behalf of the agency,
board, commission, or department.
e. If the entire enterprise or business of a reimbursable
governmental entity is sold or otherwise transferred to a subsequent
employing unit and the acquiring employing unit continues to operate
the enterprise or business, the acquiring employing unit shall assume
the position of the reimbursable governmental entity with respect to
the reimbursable governmental entity's liability to pay the
department for reimbursable benefits based on the governmental
entity's payroll to the same extent as if no change in the ownership
or control of the enterprise or business had occurred, whether or not
the acquiring employing unit elected or elects, or was or is eligible
to elect, to become a reimbursable employer with respect to the
acquiring employing unit's own payroll prior to or after the
acquisition of the governmental entity's enterprise or business.
f. If a reimbursable instrumentality of the state or of a
political subdivision is discontinued other than by sale or transfer
to a subsequent employing unit as described in paragraph "e", the
state or the political subdivision, respectively, shall reimburse the
department for benefits paid to former employees of the
instrumentality after the instrumentality is discontinued.
8. Financing benefits paid to employees of nonprofit
organizations.a. A nonprofit organization which is, or becomes, subject to
this chapter, shall pay contributions under subsections 1 and 2,
unless the nonprofit organization elects, in accordance with this
paragraph, to reimburse the unemployment compensation fund for
benefits paid in an amount equal to the amount of regular benefits
and of one-half of the extended benefits paid, which are based on
wages paid for service in the employ of the nonprofit organization
during the effective period of the election.
(1) A nonprofit organization may elect to become a reimbursable
employer for a period of not less than two calendar years by filing
with the department a written notice of its election not later than
thirty days prior to the beginning of the calendar year for which the
election is to be effective.
(2) A nonprofit organization which makes an election in
accordance with subparagraph (1) shall continue to be a reimbursable
employer until the nonprofit organization files with the department a
written notice terminating its election not later than thirty days
prior to the beginning of the calendar year for which the termination
is to be effective.
(3) The department may for good cause extend the period within
which a notice of election or termination of election must be filed
and may permit an election or termination of election to be
retroactive.
(4) The department, in accordance with rules, shall notify each
nonprofit organization of any determination made by the department of
the status of the nonprofit organization as an employer and of the
effective date of any election or termination of election. A
determination is subject to appeal and review in accordance with
subsections 4 and 5.
b. Reimbursements for benefits paid in lieu of contributions
shall be made in accordance with the following:
(1) At the end of each calendar quarter, the department shall
bill each nonprofit organization which has elected to reimburse the
unemployment compensation fund for benefits paid in an amount equal
to the full amount of regular benefits and one-half of the amount of
extended benefits paid during the quarter which are based on wages
paid for service in the employ of the organization. Benefits paid to
an individual shall be charged against the base period employers in
the inverse chronological order in which the employment of the
individual occurred. However, the amount of benefits charged against
an employer for a calendar quarter of the base period shall not
exceed the amount of the individual's wage credits based upon
employment with that employer during that quarter.
(2) The nonprofit organization shall pay the bill not later than
thirty days after the bill was mailed or otherwise delivered to the
last known address of the nonprofit organization, unless the
nonprofit organization has filed an application for redetermination
in accordance with subparagraph (4).
(3) Reimbursements made by a nonprofit organization shall not be
deducted, in whole or in part, from the wages of individuals in the
employ of the nonprofit organization.
(4) The amount due specified in a bill from the department is
conclusive unless, not later than fifteen days following the date the
bill was mailed or otherwise delivered to the last known address of
the nonprofit organization, the nonprofit organization files an
application for redetermination with the department setting forth the
grounds for the application. The department shall promptly review
the amount due specified in the bill and shall issue a
redetermination. The redetermination is conclusive on the nonprofit
organization unless, not later than thirty days after the
redetermination was mailed or otherwise delivered to the last known
address of the nonprofit organization, the nonprofit organization
files an appeal to the district court pursuant to subsection 5.
(5) The provisions for collection of contributions under section
96.14 are applicable to reimbursements for benefits paid in lieu of
contributions.
(6) If the entire enterprise or business of a reimbursable
nonprofit organization is sold or otherwise transferred to a
subsequent employing unit and the acquiring employing unit continues
to operate the enterprise or business, the acquiring employing unit
shall assume the position of the reimbursable nonprofit organization
with respect to the nonprofit organization's liability to pay the
department for reimbursable benefits based on the nonprofit
organization's payroll to the same extent as if no change in the
ownership or control of the enterprise or business had occurred,
whether or not the acquiring employing unit elected or elects, or was
or is eligible to elect, to become a reimbursable employer with
respect to the acquiring employing unit's own payroll prior to or
after the acquisition of the nonprofit organization's enterprise or
business.
9. Indian tribes.a. For purposes of this chapter, employment by an Indian
tribe shall be covered in the same manner and terms as provided for
governmental entities and the same exclusions that are applicable for
governmental entities shall also apply.
b. In financing benefits paid to employees of an Indian tribe
under this chapter, a contribution rate shall be determined and
contributions shall be assessed and collected from an Indian tribe in
the same manner provided in this chapter for contributory employers,
except that an Indian tribe shall have the option of electing to
become a governmental reimbursable employer. An Indian tribe shall
have the option to make a separate election as provided in this
paragraph for itself and for each subdivision, subsidiary, or
business enterprise wholly owned by the Indian tribe. The
reimbursable status of an Indian tribe shall be in the same manner,
to the same extent, and on the same terms as are applicable to all
governmental reimbursable employers under this chapter.
c. If the department determines that an Indian tribe has
failed to make any payment required pursuant to this chapter after
providing the Indian tribe with ninety days' notice of this failure,
the department may issue a determination that ceases coverage of all
employment by that Indian tribe until such time as all payments are
received by the department.
10. Group accounts. Two or more nonprofit organizations or
two or more governmental entities which have become reimbursable
employers in accordance with subsection 7 or subsection 8, paragraph
"a", 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 which are attributable to service in the employ of
the employers. The application shall 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 department shall
establish a group account for the employers effective as of the
beginning of the calendar quarter in which the department receives
the application and shall notify the group's agent of the effective
date of the account. The account shall remain in effect for not less
than one year until terminated at the discretion of the department or
upon application by the group. Upon establishment of the account,
each employer member of the group shall be liable for benefit
reimbursements in lieu of contributions with respect to each calendar
quarter in an amount which bears the same ratio to the total benefits
paid in the quarter which are attributable to service performed in
the employ of all members of the group, as the total wages paid for
service performed in the employ of the member in the quarter bear to
the total wages paid for service performed in the employ of all
members of the group in the quarter. The department shall adopt
rules with respect to applications for establishment, maintenance,
and termination of group accounts, for addition of new members to,
and withdrawal of active members from group accounts, and for the
determination of the amounts which are payable by members of the
group and the time and manner of the payments.
11. Temporary emergency surcharge. If on the first day of
the third month in any calendar quarter, the department has an
outstanding balance of interest accrued on advance moneys received
from the federal government for the payment of unemployment
compensation benefits, or is projected to have an outstanding balance
of accruing federal interest for that calendar quarter, the
department shall collect a uniform temporary emergency surcharge for
that calendar quarter, retroactive to the beginning of that calendar
quarter. The surcharge shall be a percentage of employer
contribution rates and shall be set at a uniform percentage, for all
employers subject to the surcharge, necessary to pay the interest
accrued on the moneys advanced to the department by the federal
government, and to pay any additional federal interest which will
accrue for the remainder of that calendar quarter. The surcharge
shall apply to all employers except governmental entities, nonprofit
organizations, and employers assigned a zero contribution rate. The
department shall adopt rules prescribing the manner in which the
surcharge will be collected. Interest shall accrue on all unpaid
surcharges under this subsection at the same rate as on regular
contributions and shall be collectible in the same manner. The
surcharge shall not affect the computation of regular contributions
under this chapter.
A special fund to be known as the temporary emergency surcharge
fund is created in the state treasury. The special fund is separate
and distinct from the unemployment compensation fund. All
contributions collected from the temporary emergency surcharge shall
be deposited in the special fund. The special fund shall be used
only to pay interest accruing on advance moneys received from the
federal government for the payment of unemployment compensation
benefits. Interest earned upon moneys in the special fund shall be
deposited in and credited to the special fund.
If the department determines on June 1 that no outstanding balance
of interest due has accrued on advanced moneys received from the
federal government for the payment of unemployment compensation
benefits, and that no outstanding balance is projected to accrue for
the remainder of the calendar year, the department shall notify the
treasurer of state of its determination. The treasurer of state
shall immediately transfer all moneys, including accrued interest, in
the temporary emergency surcharge fund to the unemployment
compensation fund for the payment of benefits.
2004 implementation of July 1, 2003, repeal of subsection 12
applies to contribution rates for and after calendar year 2004, see
§96.7, subsection 12, Code 2003
