44-710d. Governmental entities; election, mode of payment; rated governmental employer; rate computation; notice.
44-710d
44-710d. Governmental entities; election, mode of payment; rated governmentalemployer; rate computation; notice.(a) Governmental entities described insubsection (h)(3) of K.S.A. 44-703 and amendments thereto mayelect to finance benefit payments as (1) a contributing employer, (2) areimbursing employer or (3) a rated governmental employer.
(b) Any governmental entity identified in this section may elect tobecome a rated governmental employer for a period encompassing not lessthan four complete calendar years if such employer files with thesecretary a written notice of such election within the thirty-day periodimmediately following January 1 of any calendar year or within a likeperiod immediately following the date on which a determination ofsubjectivity to this act is issued, whichever occurs later.
(c) Any employer electing to become a rated governmental employershall continue to be liable as a rated governmental employer until suchemployer files with the secretary a written notice terminating itselection and not later than 30 days prior to the beginning ofthe calendar year for which such termination shall first be effective.
(d) A rated governmental employer shall report and make benefit costpayments based upon total wages paid during each calendar quarter.
(e) No rated governmental employer shall be eligible for a ratecomputed under subsection (g) of this section until there have been24 consecutive calendar months immediately preceding thecomputation date throughout which benefits could have been chargedagainst such employer's account.
(f) Each employer who has not been subject to this act for asufficient period of time to have a rate computed under thissubsection shall make quarterly payments at a calendar year rateexpressed as a percentage of total wages and shall be the samefor all rated governmental employers not eligible for a computed rate. Therate for ratedgovernmental employers not eligible for a computed rate will be basedupon the actual cost experience (benefits paid divided by total wages)of all rated governmental employers during the prior fiscal year endingMarch 31.
(g) Rated governmental employers eligible for a rate computationshall make quarterly payments at a calendar year rate determined by theexperience of all rated governmental employers and the individualemployer's experience. The rate shall be computed by the followingmethod:
(1) An adjustment factor rounded to two decimal places shall be computedfor all rated governmental employers by dividing total benefits paid bytotal benefits charged, reported by all rated governmental employers forthe preceding fiscal year ending March 31;
(2) An experience factor, stated as a percent rounded to two decimal places,shall be computed for each eligible rated governmentalemployer by dividing benefits charged to such employer's accountfor the preceding fiscal year ending March 31, by the average of such employer'stotal wages reported for the two preceding fiscal years endingMarch 31;
(3) Benefit cost rates to be effective for the ensuing calendar year shallbe computed by multiplying the experience factor determined in paragraph(2) of this subsection, by the adjustment factor determined in paragraph(1) of this subsection, rounding to the nearest .01%, except that no ratedgovernmental employer's rate for any calendar year will be less than .1%.
(h) Whenever any governmental entity which acquires or in any manner succeedsto all the employment of another governmental entity and both the predecessorand successor have selected the same payment option, the successor shallacquire the experience rating account factors of the predecessor employer. Contributing employer's experience rating account factors consist of theactual contribution and benefit experience and annual payrolls while therated governmental employer's experience rating account factors consistof the actual benefit experience and annual payrolls. If the successoremploying unit was an employer subject to this act prior to the date ofacquisition, the contribution rate or benefit cost rate for the period fromsuch date to the end of the then current calendar year shall be the sameas the rate with respect to the period immediately preceding the date ofacquisition. If the successor was not an employer prior to the date ofacquisition, the rate shall be the rate applicable to the predecessor employeror employers with respect to the period immediately preceding the date ofacquisition provided there was only one predecessor or there were only predecessorswith identical rates. In the event that the predecessors' rates are notidentical, the successor's rate shall be a newly computed rate based uponthe combined experience of the predecessors as of the computation date immediatelypreceding the date of acquisition.
(i) Benefit payments shall be charged to the account of each ratedgovernmental employer in accordance with subsection (c) of K.S.A. 44-710and amendments thereto.
(j) The secretary shall promptly notify each rated governmentalemployer of such employer's rate for the calendar year, which willbecome final unless an application for review and redetermination isfiled in accordance with subsection (b) of K.S.A. 44-710 andamendments thereto.
(k) Rated governmental employers shall make benefit cost payments eachcalendar quarter. Payments shall be computed by multiplying total wagesby the benefit cost rate. Payment of benefit cost payments for any calendarquarter which amounts to less than $1 shall not be required.
History: L. 1977, ch. 181, § 7; L. 1979, ch. 159, § 5; L. 1981,ch. 206, § 1; L. 1981, ch. 205, § 2; July 1.