288.350. Effect of amendments to related federal law.
Effect of amendments to related federal law.
288.350. 1. If the federal unemployment tax act is amendedto permit a maximum rate of credit against said federal taxhigher than the ninety percent maximum rate of credit nowpermitted under section 1601(c) of the Internal Revenue Code (26U.S.C.A. Sec. 1601), to an employer with respect to any stateunemployment insurance law whose standard contribution rate onpayroll under said law is more than two and seven-tenths percent,in that event the standard contribution rate as to all employersunder this law shall, by division rule, be increased from two andseven-tenths percent on payroll to that percentage on payrollwhich corresponds to the higher maximum rate of credit thuspermitted against the federal unemployment tax; and such increaseshall become effective on the same date as such higher maximumrate of credit becomes permissible under such federal amendment.
2. If section 303(a)(5) of Title III of the Federal SocialSecurity Act (42 U.S.C.A. Sec. 503) and section 1603(a)(4) of theInternal Revenue Code (26 U.S.C.A. Sec. 1603) are amended topermit a state agency to use, in financing administrativeexpenditures incurred in carrying out its employment securityfunctions, some part of the moneys collected or to be collectedunder a state unemployment insurance law, in partial or completesubstitution for grants under said Title III, in that event thislaw shall, by division rule, be modified in the manner and to theextent and within the limits necessary to permit such use by thedivision under this law; and such modifications shall becomeeffective on the same date as such use becomes permissible undersuch federal amendments.
3. If the tax imposed by Title IX of the Federal SocialSecurity Act or any amendments thereto, or any other federal taxagainst which contributions under this law may be credited shall,for any cause become inoperative, with the result that no portionof the contributions required under this law may be creditedagainst such federal tax, then this law by virtue of that factshall be suspended from operation.
(L. 1951 p. 564 § 288.230)