§ 34-8-156 - State-wide Reserve Ratio; reduction in tax rate
O.C.G.A. 34-8-156 (2010)
34-8-156. State-wide Reserve Ratio; reduction in tax rate
(a) A State-wide Reserve Ratio shall be computed as of June 30 of each year by dividing the balance in the trust fund, including accrued interest, by the total covered wages paid in the state during the previous calendar year. Any amount credited to the state's account under Section 903 of the Social Security Act, as amended, which has been appropriated for the expenses of administration, whether or not withdrawn from the trust fund, shall be excluded from the trust fund balance in computing the State-wide Reserve Ratio.
(b) For the period on or after January 1, 1990, but prior to January 1, 1995:
(1) When the State-wide Reserve Ratio, as computed above, is 3.3 percent or more for any calendar year, each employer who does not have a deficit reserve balance shall have its contribution rate at the time of computation credited by applying an overall reduction of the rate in accordance with the following table:
If the State-wide Reserve Ratio:
Equals or But Is Overall
Exceeds Less Than Reduction
--------- --------- ---------
3.3 percent 3.7 percent 40 percent
3.7 percent and over 60 percent
(2) When the State-wide Reserve Ratio, as calculated above, is less than 3.0 percent, there shall be an overall increase in the rate, as of the computation date, for each employer whose rate is computed under a rate table in Code Section 34-8-155 in accordance with the following table:
If the State-wide Reserve Ratio:
Equals or But Is Overall
Exceeds Less Than Increase
--------- --------- ---------
2.6 percent 3.0 percent 40 percent
Under 2.6 percent 60 percent
(c) For the period on or after January 1, 1995, but prior to January 1, 1997:
(1) When the State-wide Reserve Ratio, as computed above, is 3.3 percent or more for any calendar year, each employer who does not have a deficit reserve balance shall have its contribution rate at the time of computation credited by applying an overall reduction of the rate in accordance with the following table:
If the State-wide Reserve Ratio:
Equals or But Is Overall
Exceeds Less Than Reduction
--------- --------- ---------
3.3 percent 3.7 percent 40 percent
3.7 percent and over 50 percent
(2) When the State-wide Reserve Ratio, as calculated above, is less than 3.0 percent, there shall be an overall increase in the rate, as of the computation date, for each employer whose rate is computed under a rate table in Code Section 34-8-155 in accordance with the following table:
If the State-wide Reserve Ratio:
Equals or But Is Overall
Exceeds Less Than Increase
--------- --------- ---------
2.6 percent 3.0 percent 40 percent
Under 2.6 percent 50 percent
(d)(1) For the period on or after January 1, 1997, but prior to January 1, 1998:
(A) When the State-wide Reserve Ratio, as computed above, is 3.0 percent or more for any calendar year, each employer who does not have a deficit reserve balance shall have its contribution rate at the time of computation credited by applying an overall reduction of the rate in accordance with the following table:
If the State-wide Reserve Ratio:
Equals or But Is Overall
Exceeds Less Than Reduction
--------- --------- ---------
3.0 percent 3.6 percent 25 percent
3.6 percent and over 50 percent
(B) When the State-wide Reserve Ratio, as calculated above, is less than 2.6 percent, there shall be an overall increase in the rate, as of the computation date, for each employer whose rate is computed under a rate table in Code Section 34-8-155 in accordance with the following table:
If the State-wide Reserve Ratio:
Equals or But Is Overall
Exceeds Less Than Increase
--------- --------- ---------
1.8 percent 2.6 percent 25 percent
Under 1.8 percent 50 percent
(2) For the period on or after January 1, 1998, but prior to January 1, 1999:
(A) When the State-wide Reserve Ratio, as computed above, is 2.4 percent or more for any calendar year, each employer who does not have a deficit reserve balance shall have its contribution rate at the time of computation credited by applying an overall reduction of the rate in accordance with the following table:
If the State-wide Reserve Ratio:
Equals or But Is Overall
Exceeds Less Than Reduction
--------- --------- ---------
2.4 percent 2.7 percent 25 percent
2.7 percent and over 50 percent
(B) When the State-wide Reserve Ratio, as calculated above, is less than 2.1 percent, there shall be an overall increase in the rate, as of the computation date, for each employer whose rate is computed under a rate table in Code Section 34-8-155 in accordance with the following table:
If the State-wide Reserve Ratio:
Equals or But Is Overall
Exceeds Less Than Increase
--------- --------- ---------
1.8 percent 2.1 percent 25 percent
Under 1.8 percent 50 percent
(3) For the period on or after January 1, 1999, but prior to January 1, 2000:
(A) When the State-wide Reserve Ratio, as computed above, is 2.4 percent or more for any calendar year, each employer who does not have a deficit reserve balance shall have its contribution rate at the time of computation credited by applying an overall reduction of the rate in accordance with the following table:
If the State-wide Reserve Ratio:
Equals or But Is Overall
Exceeds Less Than Reduction
--------- --------- ---------
2.4 percent 2.7 percent 25 percent
2.7 percent and over 50 percent
(B) When the State-wide Reserve Ratio, as calculated above, is less than 2.0 percent, there shall be an overall increase in the rate, as of the computation date, for each employer whose rate is computed under a rate table in Code Section 34-8-155 in accordance with the following table:
If the State-wide Reserve Ratio:
Equals or But Is Overall
Exceeds Less Than Increase
--------- --------- ---------
1.8 percent 2.0 percent 25 percent
Under 1.8 percent 50 percent
(4) For the period on or after January 1, 2000:
(A) When the State-wide Reserve Ratio, as calculated above, is 2.4 percent or more for any calendar year, each employer who does not have a deficit reserve balance shall have its contribution rate at the time of computation credited by applying an overall reduction of the rate in accordance with the following table:
If the State-wide Reserve Ratio:
Equals or But Is Overall
Exceeds Less Than Reduction
--------- --------- ---------
2.4 percent 2.7 percent 25 percent
2.7 percent and over 50 percent
(B) Except for any year or portion of a year during which the provisions of paragraph (1) of subsection (f) of Code Section 34-8-155 apply, when the State-wide Reserve Ratio, as calculated above, is less than 1.7 percent, there shall be an overall increase in the rate, as of the computation date, for each employer whose rate is computed under a rate table in Code Section 34-8-155 in accordance with the following table:
If the State-wide Reserve Ratio:
Equals or But Is Overall
Exceeds Less Than Increase
--------- --------- ---------
1.5 percent 1.7 percent 25 percent
1.25 percent 1.5 percent 50 percent
0.75 percent 1.25 percent 75 percent
Under 0.75 percent 100 percent
provided, however, that for the periods of January 1 through December 31, 2004; January 1 through December 31, 2005; and January 1 through December 31, 2006, the overall increase in the rate required under this subparagraph shall be suspended and the provisions of this subparagraph shall be null and void, except in the event the State-wide Reserve Ratio, as calculated above, is less than 1.00 percent on the computation date with respect to rates applicable to calendar year 2004, 2005, or 2006, then for each such year the Commissioner of Labor shall have the option of imposing an increase in the overall rate of up to 35 percent, as of the computation date, for each employer whose rate is computed under a rate table in Code Section 34-8-155; and provided, further, that for the periods of January 1 through December 31, 2007, January 1 through December 31, 2008, January 1 through December 31, 2009, January 1 through December 31, 2010, and January 1 through December 31, 2011, the overall increase in the rate required under this subparagraph shall be suspended and the provisions of this subparagraph shall be null and void, except in the event the State-wide Reserve Ratio, as calculated above, is less than 1.25 percent on the computation date with respect to rates applicable to calendar year 2007, 2008, 2009, 2010, or 2011, then for each such year the Commissioner of Labor shall have the option of imposing an increase in the overall rate of up to 35 percent, as of the computation date, for each employer whose rate is computed under a rate table in Code Section 34-8-155.
(e)(1) For any calendar year prior to January 1, 1999, with respect to which the State-wide Reserve Ratio shall equal or exceed 2.1 percent, as computed pursuant to the provisions of this Code section, contribution rates shall be further reduced for the succeeding calendar year by a percentage which shall be computed in the following manner:
(A) The dollar amount by which the Unemployment Trust Fund exceeds the dollar amount which equates to a State-wide Reserve Ratio of 2.1 percent shall be divided by the total of contributions collected attributable to wages paid during the preceding calendar year, excluding penalty and interest, as of the computation date as that term is defined in Code Section 34-8-28;
(B) The resulting percentage shall be used to reduce all experience rated contribution rates by that same percentage; provided, however, that the resulting reduction shall not reduce contribution rates below the level which will produce a contribution rate of 5.4 percent for maximum deficit reserve accounts. This reduction in contribution rates shall be valid for the succeeding calendar year only; and
(C) Accounts which are not eligible for a computed contribution rate as provided in Code Section 34-8-152 shall not receive the reduction in rates.
(2) For any calendar year on and after January 1, 1999, with respect to which the State-wide Reserve Ratio shall equal or exceed 2.0 percent, as computed pursuant to the provisions of this Code section, contribution rates shall be further reduced for the succeeding calendar year by a percentage which shall be computed in the following manner:
(A) The dollar amount by which the Unemployment Trust Fund exceeds the dollar amount which equates to a State-wide Reserve Ratio of 2.0 percent shall be divided by the total of contributions collected attributable to wages paid during the preceding calendar year, excluding penalty and interest, as of the computation date as that term is defined in Code Section 34-8-28;
(B) The resulting percentage shall be used to reduce all experience rated contribution rates by that same percentage; provided, however, that the resulting reduction shall not reduce contribution rates below the level which will produce a contribution rate of 5.4 percent for maximum deficit reserve accounts. This reduction in contribution rates shall be valid for the succeeding calendar year only; and
(C) Accounts which are not eligible for a computed contribution rate as provided in Code Section 34-8-152 shall not receive the reduction in rates.
(f) The computed rates after application of percentage reductions or increases will be rounded to the nearest one-hundredth of 1 percent. The Commissioner will give notice to each employer on any rate change by reason of the above provisions.