§ 96-9. Contributions.
§ 96‑9. Contributions.
(a) Payment.
(1) Except as providedin subsection (d) hereof, contributions shall accrue and become payable by eachemployer for each calendar year in which he is subject to this Chapter, withrespect to wages for employment (as defined in G.S. 96‑8(6)). Suchcontributions shall become due and be paid by each employer to the Commissionfor the fund in accordance with such regulations as the Commission mayprescribe, and shall not be deducted in whole or in part from the remunerationof individuals in his employ. Contributions shall become due on and shall bepaid on or before the last day of the month following the close of the calendarquarter in which such wages are paid and such contributions shall be paid byeach employer to the Commission for the fund in accordance with suchregulations as the Commission may prescribe, and shall not be deducted in wholeor in part from the remuneration of individuals in his employ, provided,further, that if the Commission shall be advised by its duly authorizedofficers or agents that the collection of any contribution under any provisionof this Chapter will be jeopardized by delay, the Commission may, whether ornot the time otherwise prescribed by law for making returns and paying such taxhas expired, immediately assess such contributions (together with all interestand penalties, the assessment of which is provided for by law). Suchcontributions, penalties and interest shall thereupon become immediately dueand payable, and immediate notice and demand shall be made by the Commissionfor the payment thereof. Upon failure or refusal to pay such contributions,penalties, and interest, it shall be lawful to make collection thereof asprovided by G.S. 96‑10 and subsections thereunder and such collectionshall be lawful without regard to the due date of contributions hereinprescribed, provided, further, that nothing in this paragraph shall beconstrued as permitting any refund of contributions heretofore paid under thelaw and regulations in effect at the time such contributions were paid.
(2) In the payment ofany contributions a fractional part of a cent shall be disregarded unless itamounts to one‑half cent or more, in which case it shall be increased toone cent.
(3) Benefits paidemployees of this State shall be financed and administered in accordance withthe provisions and conditions of G.S. 96‑9(d) required for nonprofitorganizations; except as provided by suitable regulations which may be adoptedby the Commission. The Department of Administration shall make an election withrespect to financing all such benefits.
(4) Politicalsubdivisions of this State may finance benefits paid to employees either bycoming under the experience rating program provided in G.S. 96‑9(b) or bycoming into the program on a reimbursement basis in accordance with theprovisions and conditions of G.S. 96‑9(f). Any election made shall bebinding upon the political subdivision so electing for a period of four years.
(4a) Indian tribes mayfinance benefits paid to employees either by coming under the experience ratingprogram provided in G.S. 96‑9(b) or by coming into the program on areimbursement basis in accordance with the provisions and conditions of G.S. 96‑9(i).Any election made is binding on the tribe so electing for a period of threeyears.
(5) An employer is notrequired to pay contributions on wages the employer pays to an individual in acalendar year in excess of the taxable wage base for that calendar year. Thetaxable wage base is the greater of (i) the federally required taxable wagebase or (ii) the product resulting from multiplying the average yearly insuredwage by fifty percent (50%), rounded to the nearest multiple of one hundreddollars ($100.00). The average yearly insured wage is the average weeklyinsured wage on the applicable computation date multiplied by 52. The followingwages are included in determining whether the amount of wages paid to anindividual in a single calendar year exceeds the taxable wage base:
a. Wages paid to anindividual in this State by an employer that made contributions in anotherstate upon the wages paid to the individual because the work was performed inthe other state.
b. Wages paid by asuccessor employer to an individual that meets both of the following conditions:(i) the individual was an employee of the predecessor and was taken over as anemployee by the successor as a part of the organization acquired and (ii) thepredecessor employer has paid contributions on the wages paid to the individualwhile in the predecessor's employ during the year of acquisition and theaccount of the predecessor is transferred to the successor in accordance withG.S. 96‑9(c)(4)a.
(6) If the amount of thecontributions shown to be due after all credits is less than five dollars ($5.00),no payment need be made. If an employer has paid contributions, penalties,and/or interest in excess of the amount due, this shall be considered anoverpayment and refunded provided no other debts are owed to the Commission bythe employer. Overpayments of less than five dollars ($5.00) shall be refundedonly upon receipt by the Chairman of a written demand for such refund from theemployer. Nothing herein shall be construed to change or extend the limitationset forth in G.S. 96‑10(e), (f), and (i).
(7) Effective with thequarter ending September 30, 1999, every employer with 100 or more employees,and every person or organization that, as agent, reports wages on a total of100 or more employees on behalf of one or more subject employers, shall file thatportion of the "Employer's Quarterly Tax and Wage Report" thatcontains the name, social security number, and gross wages of each individualin employment on magnetic tapes or diskettes in a format prescribed by theCommission.
Forfailure of an employer to comply with this subdivision, there shall be added tothe amount required to be shown as tax in the reports a penalty of twenty‑fivedollars ($25.00). For failure of an agent to comply with this subdivision, theCommission may deny the agent the right to report wages and file reports forthe employer for whom the agent filed an improper report for a period of oneyear following the calendar quarter in which that agent filed the improperreport. The Commission may reduce or waive a penalty for good cause shown.
(8) An employer ofdomestic service employees as defined by the Internal Revenue Code may be givenpermission by the Chair of the Commission to file reports once a year on orbefore the last day of the month following the close of the calendar year inwhich the wages are paid. Permission to file a report annually may be revokedif the employer is found liable to the Commission for quarterly contributionsunder subdivision (6) of this subsection.
(9) Employers who aregranted permission under subdivision (8) of this subsection to file annualreports may be given permission to file reports by telephone. Employers whoreport by telephone must contact either the Field Tax Auditor who is assignedto the employer's account or the Unemployment Insurance Division in Raleigh andreport the required information to that Auditor or to the Division by the datethe report is due under subdivision (8) of this subsection.
(10) Employers electing todo so may pay their quarterly tax contributions by electronic funds transfer.When an electronic funds transfer cannot be completed due to insufficient fundsor the nonexistence of an account of the transferor, the Commission shallassess a penalty equal to ten percent (10%) of the amount of the transfer,subject to a minimum of one dollar ($1.00) and a maximum of one thousanddollars ($1,000). The Commission may waive this penalty for good cause shown.As used in this section, the term "electronic funds transfer" means atransfer of funds initiated by using an electronic terminal, a telephone, acomputer, or magnetic tape to instruct or authorize a financial institution orits agent to credit or debit an account.
(11) The Commission mayestablish policies to allow taxes to be payable under certain conditions bycredit card. A condition of payment by credit card is receipt by the Commissionof the full amount of taxes, penalties, and interest due. The Commission shallrequire an employer who pays by credit card to include an amount equal to anyfee charged the Commission for the use of the card. A payment of taxes that ismade by credit card and is not honored by the card issuer does not relieve theemployer of the obligation to pay the taxes.
(b) Rate ofContributions.
(1) Beginning Rate. Thestandard beginning rate of contributions for an employer is a percentage ofwages paid by the employer during a calendar year for employment occurringduring that year. For any calendar year that the training and reemploymentcontribution in G.S. 96‑6.1 applies, the rate is determined in accordancewith the following table:
Percentage Date After WhichEmployment Occurs
2.25% December31, 1986
1.8 December31, 1993
1.2 December31, 1995
1.0 December31, 1999
For any calendar year that the training andreemployment contribution in G.S. 96‑6.1 does not apply, the rate isdetermined in accordance with the following table:
Percentage Date After WhichEmployment Occurs
2.25% December31, 1986
1.8 December31, 1993
1.2 December31, 1995
(2) Experience Rating.
a. Waiting Period forRate Reduction. No employer's contribution rate shall be reduced below thestandard rate for any calendar year until its account has been chargeable withbenefits for at least 12 calendar months ending July 31 immediately precedingthe computation date. An employer's account has been chargeable with benefitsfor at least 12 calendar months if the employer has reported wages paid in fourcompleted calendar quarters pursuant to G.S. 96‑9(a).
b. Credit Ratio. TheCommission shall, for each year, compute a credit reserve ratio for eachemployer whose account has a credit balance. An employer's credit reserve ratioshall be the quotient obtained by dividing the credit balance of the employer'saccount as of July 31 of each year by the total taxable payroll of the employerfor the 36 calendar‑month period ending June 30 preceding the computationdate. Credit balance as used in this section means the total of allcontributions paid and credited for all past periods in accordance with theprovisions of G.S. 96‑9(c)(1) together with all other lawful credits tothe account of the employer less the total benefits charged to the account ofthe employer for all past periods.
c. Debit Ratio. TheCommission shall for each year compute a debit ratio for each employer whoseaccount shows that the total of all its contributions paid and credited for allpast periods in accordance with G.S. 96‑9(c)(1) together with all otherlawful credits is less than the total benefits charged to its account for allpast periods. An employer's debit ratio shall be the quotient obtained bydividing the debit balance of the employer's account as of July 31 of each yearby the total taxable payroll of the employer for the 36 calendar‑monthperiod ending June 30 preceding the computation date. The amount arrived at bysubtracting the total amount of all contributions paid and credited for allpast periods in accordance with the provisions of G.S. 96‑9(c)(1)together with all other lawful credits of the employer from the total amount ofall benefits charged to the account of the employer for such periods is theemployer's debit balance.
d. Other Provisions. Noemployer's contribution rate shall be reduced below the standard rate for anycalendar year unless its liability extends over a period of all or part of twoconsecutive calendar years and, as of August 1 of the second year, its creditreserve ratio meets the requirements of that schedule used in computing ratesfor the following calendar year, unless the employer's liability wasestablished under G.S. 96‑8(5)b and its predecessor's account wastransferred as provided by G.S. 96‑9(c)(4)a.
Whenevercontributions are erroneously paid into one account which should have been paidinto another account or which should have been paid into a new account, thaterroneous payment can be adjusted only by refunding the erroneously paidamounts to the paying entity. No pro rata adjustment to an existing account maybe made, nor can a new account be created by transferring any portion of theerroneously paid amount, notwithstanding that the entities involved may beowned, operated, or controlled by the same person or organization. Noadjustment of a contribution rate can be made reducing the rate below thestandard rate for any period in which the account was not in actual existenceand in which it was not actually chargeable for benefits. Whenever payments arefound to have been made to the wrong account, refunds can be made to the entitymaking the wrongful payment for a period not exceeding five years from the lastday of the calendar year in which it is determined that wrongful payments weremade. Notwithstanding payment into the wrong account, if an entity isdetermined to have met the requirements to be a covered employer, whether ornot the entity has had paid on the account of its employees any sum intoanother account, the Commission shall collect contributions at the standardrate or the assigned rate, whichever is higher, for the five years precedingthe determination of erroneous payments, which five years shall run from thelast day of the calendar year in which the determination of liability forcontributions or additional contributions is made. This requirement appliesregardless of whether the employer acted in good faith.
(3) a throughc. Repealed by Session Laws 1977, c. 727, s. 39.
d. Rate schedule A, B,C, D, E, F, G, H, or I appearing on the line opposite the fund ratio in thefollowing Fund Ratio Schedules table shall be applicable in determining andassigning each eligible employer's contribution rate for the calendar yearimmediately following the computation date. The fund ratio is the total amountavailable for benefits in the Unemployment Insurance Fund on the computationdate divided by the total amount of the taxable payroll of all subject employersfor the 12‑month period ending June 30 preceding the computation date.
FUND RATIO SCHEDULES
When the Fund Ratio Is: Applicable
AsMuch As But Less Than Schedule
2.0% A
2.0% 3.0% B
3.0% 4.0% C
4.0% 5.0% D
5.0% 6.0% E
6.0% 7.0% F
7.0% 8.0% G
8.0% 9.0% H
9.0%and in excess thereof I
d1. Repealed by SessionLaws 1994, Extra Session, c. 10, s. 3.
d2. Repealed by SessionLaws 1995, c. 4, s. 3, effective January 1, 1998.
d3. The standardcontribution rate set by subdivision (b)(1) of this section applies to anemployer unless the employer's account has a credit balance. Beginning January1, 1999, for any calendar year that the training and reemployment contributionin G.S. 96‑6.1 does not apply, the contribution rate of an employer whoseaccount has a credit balance is determined in accordance with the rate set inthe following Experience Rating Formula table for the applicable rate schedule.The contribution rate of an employer whose contribution rate is determined bythis Experience Rating Formula table shall be reduced by fifty percent (50%)for any year in which the balance in the Unemployment Insurance Fund oncomputation date equals or exceeds one and ninety‑five hundredths percent(1.95%) of the gross taxable wages reported to the Commission in the previouscalendar year, and the fund ratio determined on that date is less than fivepercent (5%) and shall be reduced by sixty percent (60%) for any year in whichthe balance in the Unemployment Insurance Fund on computation date equals orexceeds one and ninety‑five hundredths percent (1.95%) of the grosstaxable wages as reported to the Commission in the previous calendar year, andthe fund ratio determined on that date is five percent (5%) or more.
EXPERIENCE RATING FORMULA
When The Credit Ratio Is:
As But
Much Less
As Than RateSchedules (%)
A B C D E F G H I
0.0% 0.2% 2.70% 2.70% 2.70% 2.70% 2.50% 2.30% 2.10% 1.90% 1.70%
0.2% 0.4% 2.70% 2.70% 2.70% 2.50% 2.30% 2.10% 1.90% 1.70% 1.50%
0.4% 0.6% 2.70% 2.70% 2.50% 2.30% 2.10% 1.90% 1.70% 1.50% 1.30%
0.6% 0.8% 2.70% 2.50% 2.30% 2.10% 1.90% 1.70% 1.50% 1.30% 1.10%
0.8% 1.0% 2.50% 2.30% 2.10% 1.90% 1.70% 1.50% 1.30% 1.10% 0.90%
1.0% 1.2% 2.30% 2.10% 1.90% 1.70% 1.50% 1.30% 1.10% 0.90% 0.80%
1.2% 1.4% 2.10% 1.90% 1.70% 1.50% 1.30% 1.10% 0.90% 0.80% 0.70%
1.4% 1.6% 1.90% 1.70% 1.50% 1.30% 1.10% 0.90% 0.80% 0.70% 0.60%
1.6% 1.8% 1.70% 1.50% 1.30% 1.10% 0.90% 0.80% 0.70% 0.60% 0.50%
1.8% 2.0% 1.50% 1.30% 1.10% 0.90% 0.80% 0.70% 0.60% 0.50% 0.40%
2.0% 2.2% 1.30% 1.10% 0.90% 0.80% 0.70% 0.60% 0.50% 0.40% 0.30%
2.2% 2.4% 1.10% 0.90% 0.80% 0.70% 0.60% 0.50% 0.40% 0.30% 0.20%
2.4% 2.6% 0.90% 0.80% 0.70% 0.60% 0.50% 0.40% 0.30% 0.20% 0.15%
2.6% 2.8% 0.80% 0.70% 0.60% 0.50% 0.40% 0.30% 0.20% 0.15% 0.10%
2.8% 3.0% 0.70% 0.60% 0.50% 0.40% 0.30% 0.20% 0.15% 0.10% 0.09%
3.0% 3.2% 0.60% 0.50% 0.40% 0.30% 0.20% 0.15% 0.10% 0.09% 0.08%
3.2% 3.4% 0.50% 0.40% 0.30% 0.20% 0.15% 0.10% 0.09% 0.08% 0.07%
3.4% 3.6% 0.40% 0.30% 0.20% 0.15% 0.10% 0.09% 0.08% 0.07% 0.06%
3.6% 3.8% 0.30% 0.20% 0.15% 0.10% 0.09% 0.08% 0.07% 0.06% 0.05%
3.8% 4.0% 0.20% 0.15% 0.10% 0.09% 0.08% 0.07% 0.06% 0.05% 0.04%
4.0%
&
OVER 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
d4. Expired.
d5. The standardcontribution rate set by subdivision (b)(1) of this section applies to an employerunless the employer's account has a credit balance. Beginning January 1, 1999,for any calendar year that the training and reemployment contribution in G.S.96‑6.1 applies, the contribution rate of an employer whose account has acredit balance is determined in accordance with the rate set in the followingExperience Rating Formula table for the applicable rate schedule. Thecontribution rate of an employer whose contribution rate is determined by thisExperience Rating Formula table shall be reduced by fifty percent (50%) for anyyear in which the balance in the Unemployment Insurance Fund on computationdate equals or exceeds one and ninety‑five hundredths percent (1.95%) ofthe gross taxable wages reported to the Commission in the previous calendar year,and the fund ratio determined on that date is less than five percent (5%) andshall be reduced by sixty percent (60%) for any year in which the balance inthe Unemployment Insurance Fund on computation date equals or exceeds one andninety‑five hundredths percent (1.95%) of the gross taxable wagesreported to the Commission in the previous calendar year, and the fund ratiodetermined on that date is five percent (5%) or more.
EXPERIENCE RATING FORMULA
When The Credit Ratio Is:
As But
Much Less
As Than RateSchedules (%)
A B C D E F G H I
0.0% 0.2% 2.16% 2.16% 2.16% 2.16% 2.00% 1.84% 1.68% 1.52% 1.36%
0.2% 0.4% 2.16% 2.16% 2.16% 2.00% 1.84% 1.68% 1.52% 1.36% 1.20%
0.4% 0.6% 2.16% 2.16% 2.00% 1.84% 1.68% 1.52% 1.36% 1.20% 1.04%
0.6% 0.8% 2.16% 2.00% 1.84% 1.68% 1.52% 1.36% 1.20% 1.04% 0.88%
0.8% 1.0% 2.00% 1.84% 1.68% 1.52% 1.36% 1.20% 1.04% 0.88% 0.72%
1.0% 1.2% 1.84% 1.68% 1.52% 1.36% 1.20% 1.04% 0.88% 0.72% 0.64%
1.2% 1.4% 1.68% 1.52% 1.36% 1.20% 1.04% 0.88% 0.72% 0.64% 0.56%
1.4% 1.6% 1.52% 1.36% 1.20% 1.04% 0.88% 0.72% 0.64% 0.56% 0.48%
1.6% 1.8% 1.36% 1.20% 1.04% 0.88% 0.72% 0.64% 0.56% 0.48% 0.40%
1.8% 2.0% 1.20% 1.04% 0.88% 0.72% 0.64% 0.56% 0.48% 0.40% 0.32%
2.0% 2.2% 1.04% 0.88% 0.72% 0.64% 0.56% 0.48% 0.40% 0.32% 0.24%
2.2% 2.4% 0.88% 0.72% 0.64% 0.56% 0.48% 0.40% 0.32% 0.24% 0.16%
2.4% 2.6% 0.72% 0.64% 0.56% 0.48% 0.40% 0.32% 0.24% 0.16% 0.12%
2.6% 2.8% 0.64% 0.56% 0.48% 0.40% 0.32% 0.24% 0.16% 0.12% 0.08%
2.8% 3.0% 0.56% 0.48% 0.40% 0.32% 0.24% 0.16% 0.12% 0.08% 0.07%
3.0% 3.2% 0.48% 0.40% 0.32% 0.24% 0.16% 0.12% 0.08% 0.07% 0.06%
3.2% 3.4% 0.40% 0.32% 0.24% 0.16% 0.12% 0.08% 0.07% 0.06% 0.06%
3.4% 3.6% 0.32% 0.24% 0.16% 0.12% 0.08% 0.07% 0.06% 0.06% 0.05%
3.6% 3.8% 0.24% 0.15% 0.12% 0.08% 0.07% 0.06% 0.06% 0.05% 0.04%
3.8% 4.0% 0.16% 0.12% 0.08% 0.07% 0.06% 0.06% 0.05% 0.04% 0.03%
4.0%
&
OVER 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
e. For any calendaryear that the training and reemployment contribution in G.S. 96‑6.1applies, each employer whose account as of any computation date occurring afterAugust 1, 1964, shows a debit balance shall be assigned the rate ofcontributions appearing on the line opposite its debit ratio as set forth inthe following Rate Schedule for Overdrawn Accounts:
RATE SCHEDULE FOR OVERDRAWN ACCOUNTS BEGINNING WITH THECALENDAR YEAR 1978
WhenThe Debit Ratio Is:
AsMuch As But Less Than Assigned Rate
0.0% 0.3% 2.3%
0.3 0.6 2.5
0.6 0.9 2.6
0.9 1.2 2.8
1.2 1.5 3.0
1.5 1.8 3.1
1.8 2.1 3.3
2.1 2.4 3.4
2.4 2.7 3.6
2.7 3.0 3.8
3.0 3.3 3.9
3.3 3.6 4.1
3.6 3.9 4.2
3.9 4.2 4.4
4.0 4.5 4.6
4.5 4.8 4.8
4.8 5.1 5.0
5.1 5.4 5.2
5.4and over 5.4
Forany calendar year that the training and reemployment contribution in G.S. 96‑6.1does not apply, each employer whose account as of any computation dateoccurring after August 1, 1964, shows a debit balance shall be assigned therate of contributions appearing on the line opposite its debit ratio as setforth in the following Rate Schedule for Overdrawn Accounts:
RATE SCHEDULE FOR OVERDRAWN ACCOUNTS BEGINNING WITH THECALENDAR YEAR 1978
WhenThe Debit Ratio Is:
AsMuch As But Less Than Assigned Rate
0.0% 0.3% 2.9%
0.3 0.6 3.1
0.6 0.9 3.3
0.9 1.2 3.5
1.2 1.5 3.7
1.5 1.8 3.9
1.8 2.1 4.1
2.1 2.4 4.3
2.4 2.7 4.5
2.7 3.0 4.7
3.0 3.3 4.9
3.3 3.6 5.1
3.6 3.9 5.3
3.9 4.2 5.5
4.2and over 5.7
TheRate Schedule for Overdrawn Accounts Beginning with the CalendarYear 1966 in force in any particular calendar year shall apply to all accountsfor that calendar year subsequent replacement enactments notwithstanding.
f. The computationdate for all contribution rates shall be August 1 of the calendar yearpreceding the calendar year with respect to which such rates are effective.
g. Any employer may atany time make a voluntary contribution, additional to the contributionsrequired under this Chapter, to the fund to be credited to its account, andsuch voluntary contributions when made shall for all intents and purposes bedeemed "contributions required" as this term is used in G.S. 96‑8(8).Any voluntary contributions so made by an employer within 30 days after thedate of mailing by the Commission pursuant to G.S. 96‑9(c)(3) ofnotification of contribution rate contained in cumulative account statement andcomputation of rate, shall be credited to its account as of the previous July31. If, however, the voluntary contribution is made after July 31 of any yearit shall not be considered a part of the balance of the unemployment insurancefund for the purposes of G.S. 96‑9(b)(3) until the following July 31. TheCommission in accepting a voluntary contribution shall not be bound by anycondition stipulated in or made a part of the voluntary contribution by theemployer.
h. If, within thecalendar month in which the computation date occurs, the Commission finds thatany employing unit has failed to file any report required in connectiontherewith or has filed a report which the Commission finds incorrect orinsufficient, the Commission shall make an estimate of the information requiredfrom such employing unit on the basis of the best evidence reasonably availableto it at the time and shall notify the employing unit thereof by registeredmail addressed to its last known address. Unless such employing unit shall filethe report or a corrected or sufficient report, as the case may be, within 15days after the mailing of such notice, the Commission shall compute suchemploying unit's rate of contributions on the basis of such estimates, and therate as so determined shall be subject to increases but not to reduction, onthe basis of subsequently ascertained information.
i. Repealed by SessionLaws 1987, c. 17, s. 5.
j. A tax is imposedupon contributions at the rate of twenty percent (20%) of the amount ofcontributions due. The tax is due and payable at the time and in the samemanner as the contributions. The tax does not apply in a calendar year if, asof August 1 of the preceding year, either of the following conditions was met;(i) the amount in the Reserve Fund equals or exceeds one hundred sixty‑threemillion three hundred forty‑nine thousand dollars ($163,349,000), whichis one percent (1%) of taxable wages for calendar year 1984; or (ii) thebalance in the Unemployment Insurance Fund established by G.S. 96‑6(a) isfive hundred million ($500,000,000) or less. The collection of this tax, theassessment of interest and penalties on unpaid taxes, the filing of judgmentliens, and the enforcement of the liens for unpaid taxes is governed by theprovisions of G.S. 96‑10 where applicable. Taxes collected under thissubpart shall be credited to the Employment Security Commission Reserve Fund,and refunds of the taxes shall be paid from the same Fund. The clear proceedsof any civil penalties collected under this subpart shall be remitted to theCivil Penalty and Forfeiture Fund in accordance with G.S. 115C‑457.2. Anyinterest collected on unpaid taxes shall be credited to the Special EmploymentSecurity Administration Fund, and any interest refunded on taxes imposed bythis subpart shall be paid from the same Fund.
(c) (1) Exceptas provided in subsection (d) of this section, the Commission shall maintain aseparate account for each employer and shall credit his account with allvoluntary contributions made by him and all other contributions which he haspaid or is paid on his behalf, provided the Commission shall credit the accountof each employer in an amount equal to eighty percent (80%) of all voluntarycontributions paid with respect to periods prior to January 1, 1984, and of allother contributions paid with respect to periods between July 1, 1965, andDecember 31, 1983. On the computation date, beginning first with August 1,1948, the ratio of the credit balance in each individual account to the totalof all the credit balances in all employer accounts shall be computed as ofsuch computation date, and an amount equal to the interest credited to thisState's account in the unemployment trust fund in the treasury of the UnitedStates for the four most recently completed calendar quarters shall be creditedprior to the next computation date on a pro rata basis to all employers'accounts having a credit balance on the computation date. Such amount shall beprorated to the individual accounts in the same ratio that the credit balancein each individual account bears to the total of the credit balances in allsuch accounts. In computing the amount to be credited to the account of anemployer as a result of interest earned by funds on deposit in the unemploymenttrust fund in the treasury of the United States to the account of this State,any voluntary contributions made by an employer after July 31 of any year shallnot be considered a part of the account balance of the employer until the nextcomputation date occurring after such voluntary contribution was made. Noprovision in this section shall in any way be subject to or affected by anyprovisions of the Executive Budget Act, as amended. Nothing in this Act shallbe construed to grant any employer or individual in his service prior claims orrights to the amount paid by him into the fund either on his own behalf or onbehalf of such individuals.
(2) Charging of benefitpayments.
a. Benefits paid shallbe allocated to the account of each base period employer in the proportion thatthe base period wages paid to an eligible individual in any calendar quarter byeach such employer bears to the total wages paid by all base period employersduring the base period, except as hereinafter provided in paragraphs b, c, andd of this subdivision, G.S. 96‑9(d)(2)c, and 96‑12.01G. The amountso allocated shall be multiplied by one hundred twenty percent (120%) andcharged to that employer's account. Benefits paid shall be charged toemployers' accounts upon the basis of benefits paid to claimants whose benefityears have expired.
b. Any benefits paid toany claimant under a claim filed for a period occurring after the date of suchseparations as are set forth in this paragraph and based on wages paid prior tothe date of (i) the leaving of work by the claimant without good causeattributable to the employer; (ii) the discharge of claimant for misconduct inconnection with his work; (iii) the discharge of the claimant for substantialfault as that term may be defined in G.S. 96‑14; (iv) the discharge ofthe claimant solely for a bona fide inability to do the work for which he washired but only where the claimant's period of employment was 100 days or less;(v) separations made disqualifying under G.S. 96‑14(2b) and (6a); (vi)separation due to leaving for disability or health condition; or (vii)separation of claimant solely as the result of an undue family hardship shallnot be charged to the account of an employer by whom the claimant was employedat the time of such separation; provided, however, said employer promptlyfurnishes the Commission with such notices regarding any separation of theindividual from work as are or may be required by the regulations of theCommission.
Nobenefit charges shall be made to the account of any employer who has furnishedwork to an individual who, because of the loss of employment with one or moreother employers, becomes eligible for partial benefits while still beingfurnished work by such employer on substantially the same basis andsubstantially the same amount as had been made available to such individualduring his base period whether the employments were simultaneous or successive;provided, that such employer makes a written request for noncharging ofbenefits in accordance with Commission regulations and procedures.
Nobenefit charges shall be made to the account of any employer for benefit yearsending on or before June 30, 1992, where benefits were paid as a result of adischarge due directly to the reemployment of a veteran mandated by theVeteran's Reemployment Rights Law, 38 USCA § 2021, et seq.
Nobenefit charges shall be made to the account of any employer where benefits arepaid as a result of a decision by an Adjudicator, Appeals Referee or theCommission if such decision to pay benefits is ultimately reversed; nor shallany such benefits paid be deemed to constitute an overpayment under G.S. 96‑18(g)(2),the provisions thereof notwithstanding. Provided, an overpayment of benefitspaid shall be established in order to provide for the waiting period requiredby G.S. 96‑13(c).
c. Any benefits paid toany claimant who is attending a vocational school or training program asprovided in G.S. 96‑13(a)(3) shall not be charged to the account of thebase period employer(s).
d. Any benefits paid toany claimant under the following conditions shall not be charged to the accountof the base period employer(s):
1. The benefits arepaid for unemployment due directly to a major natural disaster, and
2. The President hasdeclared the disaster pursuant to the Disaster Relief Act of 1970, 42 USCA 4401,et seq., and
3. The benefits arepaid to claimants who would have been eligible for disaster unemploymentassistance under this Act, if they had not received unemployment insurancebenefits with respect to that unemployment.
e. 1. Anybenefits paid to any claimant which are based on previously uncoveredemployment which are reimbursable by the federal government shall not becharged to the experience rating account of any employer.
2. For purposes of thisparagraph previously uncovered employment for which benefits are reimbursableby the federal government means services performed before July 1, 1978, in thecase of a week of unemployment beginning before July 1, 1978, or before January1, 1978, in the case of a week of unemployment beginning after July 1, 1978,and to the extent that assistance under Title II of the Emergency Jobs andUnemployment Assistance Act of 1974 (SUA) was not paid to such individuals onthe basis of such service.
(3) As of July 31 ofeach year, and prior to January 1 of the succeeding year, the Commission shalldetermine the balance of each employer's account and shall furnish him with astatement of all charges and credits thereto. At the same time the Commissionshall notify each employer of his rate of contributions as determined for thesucceeding calendar year pursuant to this section. Such determination shallbecome final unless the employer files an application for review orredetermination prior to May 1 following the effective date of such rates. TheCommission may redetermine on its own motion within the same period of time.
(4) Transfer of account.
a. 1. Mandatory. When an employer, as defined in G.S. 96‑8(5)b., in any manner acquiresall of the organization, trade, or business of another employing unit, theaccount of the predecessor shall be transferred as of the date of theacquisition to the successor employer for use in the determination of thesuccessor's rate of contributions. This mandatory transfer does not apply whenthere is no common ownership between the predecessor and the successor and thesuccessor acquired the assets of the predecessor in a sale in bankruptcy. Inthis circumstance, the successor's rate of contributions is determined withoutregard to the predecessor's rate of contributions.
2. Consent. When anemployer, as defined in G.S. 96‑8(5)b., in any manner acquires a distinctand severable portion of the organization, trade, or business of anotheremploying unit, the part of the account of the predecessor that relates to theacquired portion of the business shall, upon the mutual consent of the partiesconcerned and approval of the Commission in conformity with the regulations asprescribed therefor, be transferred as of the date of acquisition to thesuccessor employer for use in the determination of the successor's rate ofcontributions, provided application for transfer is made within 60 days afterthe Commission notifies the successor of the right to request such transfer,otherwise the effective date of the transfer shall be the first day of thecalendar quarter in which such application is filed, and that after thetransfer the successor employing unit continues to operate the transferredportion of such organization, trade or business. On or after January 1, 2006,whenever part of an organization, trade, or business is transferred betweenentities subject to substantially common ownership, management, or control, thetax account shall be transferred in accordance with regulations. However,employing units transferring entities with any common ownership, management, orcontrol are not entitled to separate and distinct employer status under thisChapter. Provided, however, that the transfer of an account for the purpose ofcomputation of rates shall be deemed to have been made prior to the computationdate falling within the calendar year within which the effective date of suchtransfer occurs and the account shall thereafter be used in the computation ofthe rate of the successor employer for succeeding years, subject, however, tothe provisions of paragraph b of this subdivision. No request for a transfer ofthe account will be accepted and no transfer of the account will be made if therequest for the transfer of the account is not received within two years of thedate of acquisition or notification by the Commission of the right to requestsuch transfer, whichever occurs later. However, in no event will a request fora transfer be allowed if an account has been terminated because an employerceases to be an employer pursuant to G.S. 96‑9(c)(5) and G.S. 96‑11(d)regardless of the date of notification.
a1. A new employing unitshall not be assigned a discrete employer number when there is an acquisitionor change in the form or organization of an existing business enterprise, orseverable portion thereof, and there is a continuity of control of the businessenterprise. That new employing unit shall continue to be the same employer forthe purposes of this Chapter as before the acquisition or change in form. Asused in this sub‑subdivision:
1. "Control of thebusiness enterprise" may occur by means of ownership of the organizationconducting the business enterprise, ownership of assets necessary to conductthe business enterprise, security arrangements or lease arrangements coveringassets necessary to conduct the business enterprise, or a contract when theownership, stated arrangements, or contract provide for or allow direction ofthe internal affairs or conduct of the business enterprise.
2. A "continuityof control" will exist if one or more persons, entities, or otherorganizations controlling the business enterprise remain in control of thebusiness enterprise after an acquisition or change in form. Evidence ofcontinuity of control shall include, but not be limited to, changes of anindividual proprietorship to a corporation, partnership, limited liabilitycompany, association, or estate; a partnership to an individual proprietorship,corporation, limited liability company, association, estate, or the addition,deletion, or change of partners; a limited liability company to an individualproprietorship, partnership, corporation, association, estate, or to anotherlimited liability company; a corporation to an individual proprietorshippartnership, limited liability company, association, estate, or to anothercorporation or from any form to another form.
This sub‑subdivision shall not modify the provisionsof G.S. 96‑10(d) Collections of Contributions Upon Transfer orCessation of Business.
b. Notwithstanding anyother provisions of this section, if the successor employer was an employersubject to this Chapter prior to the date of acquisition of the business, thesuccessor's rate of contribution for the period from that date to the end ofthe then current contribution year shall be the same as the successor's rate ineffect on the date of the acquisition. If the successor was not an employerprior to the date of the acquisition of the business, the successor shall beassigned a standard beginning rate of contribution set forth in G.S. 96‑9(b)(1)for the remainder of the year in which the successor acquired the business ofthe predecessor; however, if the successor makes application for the transferof the account within 60 days after notification by the Commission of the rightto do so and the account is transferred, or meets the requirements formandatory transfer, the successor shall be assigned for the remainder of theyear the rate applicable to the predecessor employer or employers on the dateof acquisition of the business, as long as there was only one predecessor or,if more than one, the predecessors had identical rates. In the event the ratesof the predecessor were not identical, the rate of the successor shall be thehighest rate applicable to any of the predecessor employers on the date ofacquisition of the business.
Irrespectiveof any other provisions of this Chapter, when an account is transferred in itsentirety by an employer to a successor, the transferring employer shallthereafter pay the standard beginning rate of contributions set forth in G.S.96‑9(b)(1) and shall continue to pay at that rate until the transferringemployer qualifies for a reduction, reacquires the account transferred oracquires the experience rating account of another employer, or is subject to anincrease in rate under the conditions prescribed in G.S. 96‑9(b)(2) and(3).
c. In those cases wherethe organization, trade, or business of a deceased person, or insolvent debtoris taken over and operated by an administrator, administratrix, executor,executrix, receiver, or trustee in bankruptcy, such employing units shallautomatically succeed to the account and rate of contribution of such deceasedperson, or insolvent debtor without the necessity of the filing of a formalapplication for the transfer of such account.
(5) In the event anyemployer subject to this Chapter ceases to be such an employer, his accountshall be closed and the same shall not be used in any future computation ofsuch employer's rate nor shall any period prior to the effective date of the terminationof such employer during which benefits were chargeable be considered in theapplication of G.S. 96‑9(b)(2) of this Chapter.
(6) If the Commissionfinds that an employer's business is closed solely because of the entrance ofone or more of the owners, officers, partners, or the majority stockholder intothe Armed Forces of the United States, or of any of its allies, or of theUnited Nations, such employer's experience rating account shall not beterminated; and, if the business is resumed within two years after thedischarge or release from active duty in the Armed Forces of such person orpersons, the employer's account shall be deemed to have been chargeable withbenefits throughout more than 13 consecutive calendar months ending July 31immediately preceding the computation date. This subdivision shall apply onlyto employers who are liable for contributions under the experience ratingsystem of financing unemployment benefits. This subdivision shall not beconstrued to apply to employers who are liable for payments in lieu ofcontributions or to employers using the reimbursable method of financingbenefit payments.
(d) Benefits paid toemployees of nonprofit organizations shall be financed in accordance with theprovisions of this paragraph. For the purposes of this paragraph, a nonprofitorganization is an organization (or group of organizations) described insection 501(c)(3) of the Internal Revenue Code that is exempt from income taxunder section 501(a) of the Internal Revenue Code.
(1) a. Anynonprofit organization which becomes subject to this Chapter on or afterJanuary 1, 1972, shall pay contributions under the provisions of this Chapter,unless it elects in accordance with this paragraph to pay the Commission forthe Unemployment Insurance Fund an amount equal to the amount of regularbenefits and of one half of the extended benefits paid, that is attributable toservice in the employ of such nonprofit organization, to individuals for weeksof unemployment which begin within a benefit year established during theeffective period of such election.
b. Any nonprofitorganization which is or becomes subject to this Chapter on or after January 1,1972, may elect to become liable for payments in lieu of contributions for aperiod of not less than four calendar years beginning with the date on whichsubjectivity begins by filing a written notice of its election with theCommission not later than 30 days immediately following the date of writtennotification of the determination of such subjectivity. Provided ifnotification is not by registered mail, the election may be made on or afterJanuary 1, 1972, within six months following the date of the writtennotification of the determination of such subjectivity. If such election is notmade as set forth herein, no election can be made until after four calendaryears have elapsed under the contributions method of payment.
c. Any nonprofitorganization which makes an election in accordance with subparagraph b of thisparagraph will continue after such four calendar years to be liable forpayments in lieu of contributions until it files with the Commission a writtennotice terminating its election not later than 30 days prior to the nextJanuary 1, effective on such January 1. Provided, however, no employer grantedor in reimbursement status will be allowed refund of any previous balances usedin a transfer to reimbursement status.
d. Any nonprofitorganization which has been paying contributions under this Chapter for aperiod of at least four consecutive calendar years subsequent to January 1,1972, may elect to change to a reimbursement basis by filing with theCommission not later than 30 days prior to the next January 1 a written noticeof election to become liable for payments in lieu of contributions, effectiveon such January 1. Such election shall not be terminable for a period of fourcalendar years. In the event of such an election, the account of such employershall be closed and shall not be used in any future computation of suchemployer's contribution rate in any manner whatsoever.
d1. Any nonprofitorganization which makes an election in accordance with subparagraph b. of thisparagraph must secure such election by making a payment in lieu ofcontributions as provided in subdivision (2) of this subsection, posting asurety bond from an insurance company duly licensed to conduct business in thisState, or obtaining an irrevocable letter of credit with the Commission toinsure the payments in lieu of contributions as provided in subdivision (2) of thissubsection. Any surety bond posted under this paragraph shall be in force for aperiod of not less than two calendar years and shall be renewed with theapproval of the Commission. The Commission may adopt rules to implement theprovisions of this subparagraph.
e. The Commission, inaccordance with such regulations as it may adopt, shall notify each nonprofitorganization of any determination which it may make of its status as anemployer and of the effective date of any election which it makes and of anytermination of such election. Such determinations shall be subject toreconsideration, appeal and review.
(2) Payments in lieu ofcontributions shall be made in accordance with the provisions of thissubparagraph and shall be processed as provided herein.
a. Quarterlycontributions and wage reports and advance payments shall be submitted to theCommission quarterly under the same conditions and requirements of G.S. 96‑9and 96‑10, except that the amount of advance payments shall be computedas one percent (1%) of taxable wages and entered on such reports; provided thatsuch advance payments shall become effective only with respect to the firstfour thousand two hundred dollars ($4,200) in wages paid in a calendar yearuntil January 1, 1978. On and after that date advance payments shall beeffective with respect to the federally required wage base provided that afterDecember 31, 1983, the wage base shall be the same as that provided for in G.S.96‑9(a)(5). Collection of such advance payments shall be made as providedfor the collection of contributions in G.S. 96‑10.
BeginningJanuary 1, 1978, any employer making quarterly reports of employment to theCommission and if such employer is a newly electing reimbursement employer heshall pay contributions of one percent (1%) of taxable wages entered on suchreports.
Anyemployer paying by reimbursement having been, prior to July 1, under thereimbursement method of payment for the preceding calendar year, shall continueto file quarterly reports but shall make no payments with those reports.
b. The Commission shallestablish a separate account for each such employer and such account shall becredited, and maintained as provided in G.S. 96‑9(c)(1), except thatadvance payments shall be credited in full and voluntary contributions are notapplicable.
c. Benefits paid shallbe allocated to the employer's account in accordance with G.S. 96‑9(c)(2)abut charged to such account without the application of any multiplier, and nobenefits shall be noncharged except amounts equal to fifty percent (50%) ofextended benefits paid and amounts equal to one hundred percent (100%) ofbenefits paid through error.
d. As of July 31 ofeach year, and prior to January 1 of the succeeding year, the Commission shalldetermine the balance of each such employer's account and shall furnish himwith a statement of all charges and credits thereto.
Shouldthe balance in such account not equal that requiring a refund, the employershall upon notice and demand for payment mailed to his last known address payinto his account an amount that will bring such balance to the minimum re