§ 1321 - Contributions
§ 1321. Contributions
(a) Payment of Contributions. Contributions shall accrue and become payable by each employer for each calendar year in which he or she is subject to this chapter, with respect to wages paid for employment, as defined in subdivision 1301(6) of this title, occurring during such calendar year, except as otherwise provided in this section. The contributions shall become due and be payable at such time and in such installments as the board prescribes.
(b) Base of Contributions. Subsequent to December 31, 1982, the term "wages" shall not include that part of remuneration which, after remuneration equal to $8,000.00 has been paid in a calendar year to an individual by an employer with respect to employment during a calendar year, unless that part of the remuneration is subject to a tax under a federal law imposing a tax against which credit may be taken for contributions required to be paid into a state unemployment fund. For the period January 1, 2010, through December 31, 2010, the term "wages" shall not include that part of remuneration which, after remuneration equal to $10,000.00 has been paid in a calendar year to an individual by an employer with respect to employment during a calendar year, unless that part of the remuneration is subject to a tax under a federal law imposing a tax against which credit may be taken for contributions required to be paid into a state unemployment fund. For the purposes of this subsection:
(1) Any employer who acquired the entire or a distinct and severable portion of the organization, trade, or business of an employer shall be treated as a single unit with its predecessor for the calendar year in which such acquisition occurs; and
(2) The term employment shall include service constituting employment under any unemployment compensation law of another state.
(c)(1) Financing benefits paid to employees of nonprofit organizations.
accordance with the provisions of this subsection. For the purposes of this subsection, a nonprofit organization is an organization (or group of organizations) described in Section 501(c)(3) of the Internal Revenue Code of the United States which is exempt from income tax under Section 501(a) of such code.
(2) Liability for contributions and election of reimbursement. Any nonprofit organization which, pursuant to subdivision1301(5)(B)(i) of this title, is, or becomes, subject to this chapter on or after January 1, 1972 shall pay contributions under the provisions of this section, unless it elects, in accordance with this subsection, to pay to the commissioner, for the unemployment fund, an amount equal to the amount of regular benefits and of one-half of the extended benefits paid, that is attributable to service in the employ of such nonprofit organization, to individuals for weeks of unemployment which begin during the effective period of such election.
(A) Any nonprofit organization which is, or becomes, subject to this chapter on January 1, 1972 may elect to become liable for payments in lieu of contributions for a period of not less than one calendar year beginning with January 1, 1972 provided it files with the commissioner a written notice of its election within the 30-day period immediately following such date or within a like period immediately following the date of enactment of this act, whichever occurs later.
(B) Any nonprofit organization which becomes subject to this chapter after January 1, 1972 may elect to become liable for payments in lieu of contributions for a period of not less than 12 months beginning with the date on which such subjectivity begins by filing a written notice of its election with the commissioner not later than 30 days immediately following the date of the determination of such subjectivity.
(C) Any nonprofit organization which makes an election in accordance with subdivisions (c)(2)(A) and (B) of this section will continue to be liable for payments in lieu of contributions until it files with the commissioner a written notice terminating its election not later than 30 days prior to the beginning of the calendar year for which such termination shall first be effective.
(D) Any nonprofit organization which has been paying contributions under this chapter for a period subsequent to January 1, 1972 may change to a reimbursable basis by filing with the commissioner not later than 30 days prior to the beginning of any calendar year a written notice of election to become liable for payments in lieu of contributions. Such election shall not be terminable by the organization for that year and the next year.
(E) The commissioner may for good cause extend the period within which a notice of election, or a notice of termination, must be filed and may permit an election to be retroactive but not any earlier than with respect to benefits paid after December 31, 1969.
(F) The commissioner, in accordance with such rules as the board may prescribe, shall notify each nonprofit organization of any determination which he or she may make of its status as an employer and of the effective date of any election which it makes and of any termination of such election. Such determinations shall be subject to reconsideration and to appeal and review in accordance with the provisions of section 1337a of this title.
(3) Reimbursement payments. Payments in lieu of contributions shall be made in accordance with the provisions of this subdivision including either subdivision (A) or subdivision (B).
(A) At the end of each calendar quarter, or at the end of any other period as determined by the commissioner, the commissioner shall bill each nonprofit organization, or group of such organizations, which has elected to make payments in lieu of contributions for an amount equal to the full amount of regular benefits plus one-half of the amount of extended benefits paid during such quarter or other prescribed period that is attributable to service in the employ of such organization.
(B)(i) Each nonprofit organization that has elected payments in lieu of contributions may request permission to make such payments as provided in this subdivision. Such method of payment shall become effective upon approval of the commissioner.
(ii) At the end of each calendar quarter the commissioner shall bill each nonprofit organization for an amount representing one of the following:
(I) For 1972, two-tenths of one percent of its total payroll for 1971.
(II) For years after 1972, such percentage of its total payroll for the immediately preceding calendar year as the commissioner shall determine. The determination shall be based each year on the average benefit costs attributable to service in the employ of nonprofit organizations during the preceding calendar year.
(III) For any organization which did not pay wages throughout the four calendar quarters of the preceding calendar year, such percentage of its payroll during that year as the commissioner shall determine.
(iii) At the end of each calendar year, the commissioner may modify the quarterly percentage of payroll thereafter payable by the nonprofit organization in order to minimize excess or insufficient payments.
(iv) At the end of each calendar year, the commissioner shall determine whether the total of payments for such year made by a nonprofit organization is less than, or in excess of, the total amount of regular benefits plus one-half of the amount of extended benefits paid to individuals during such taxable year based on wages attributable to service in the employ of such organization. Each nonprofit organization whose total payments for such year are less than the amount so determined shall be liable for payment of the unpaid balance to the fund in accordance with subdivision (c)(3)(C) of this section. If the total payments exceed the amount so determined for the taxable year, all or a part of the excess shall, at the election of the nonprofit organization, be refunded from the fund or retained in the fund as part of the payments which may be required for the next calendar year.
(C) Payment of any bill rendered under subdivision (c)(2) or subdivision (c)(3) of this section shall be made not later than 30 days after the bill is mailed to the last known address of the nonprofit organization or is otherwise delivered to it, unless there has been an application for redetermination by the commissioner or a petition for hearing before a referee in accordance with subdivision (c)(3)(E) of this section.
(D) Payments made by any nonprofit corporation under the provisions of this section shall not be deducted or deductible, in whole or in part, from the remuneration of individuals in the employ of the organization.
(E) The amount due specified in any bill from the commissioner shall be conclusive on the organization unless, not later than 30 days after the date of the bill, the organization files an application for reconsideration by the commissioner, or a petition for a hearing before a referee, setting forth the grounds for such application or petition. The commissioner shall promptly review and reconsider the amount due specified in the bill and shall thereafter issue a redetermination in any case in which such application for redetermination has been filed. Any such redetermination shall be conclusive on the organization unless, not later than 30 days after the date of the redetermination, the organization files a petition for a hearing before a referee, setting forth the grounds for the petition. Proceedings on the petition for a hearing before a referee on the amount of a bill rendered under this section or a redetermination of such amount shall be in accordance with the provisions of section 1331 of this title, and the decision of the referee shall be subject to the provisions of that section. Review of the decision of the referee by the employment security board shall be in accordance with, and its decision shall be subject to, the provisions of section 1332 of this title.
(F) Any employer including the state of Vermont which makes payments in lieu of contributions under this section shall be subject to the provisions of sections 1314, 1322, 1328, 1329, 1334, and 1336 of this title as follows:
(i) that employer shall be liable for any reports as the commissioner may require pursuant to sections 1314 and 1322 of this title;
(ii) that employer shall be liable for any penalty imposed pursuant to sections 1314 and 1328 of this title;
(iii) that employer shall be liable for the same interest on past due payments pursuant to subsection 1329(a) of this title;
(iv) that employer shall be subject to a civil action for the collection of past due payments as if those payments were contributions pursuant to subsections 1329(b) and 1334(a) of this title; and
(v) that employer shall be subject to those actions for the collection of past due payments as if those payments were contributions pursuant to subsections 1329(c) and (d), 1334(b) and (c), and section 1336 of this title; however, those provisions shall not apply to the state of Vermont.
(4) Authority to terminate elections. If any nonprofit organization is delinquent in making payments in lieu of contributions as required under subsection (c) of this section, the commissioner may terminate such organization's election to make payments in lieu of contributions as of the beginning of the next taxable year, and the termination shall be effective for that and the next taxable year.
(5) Allocation of benefit costs. Each employer that is liable for payments in lieu of contributions shall pay to the commissioner for the fund the amount of regular benefits plus the amount of one-half of extended benefits paid that are attributable to service in the employ of such employer. If benefits paid to an individual are based on wages paid by more than one employer and one or more of such employers are liable for payments in lieu of contributions, the amount payable to the fund by each employer that is liable for such payments shall be determined in accordance with subdivisions (c)(5)(A) and (B) of this section:
(A) Proportionate allocation when fewer than all base-period employers are liable for reimbursement. If benefits paid to an individual are based on wages paid by one or more employers that are liable for payments in lieu of contributions and on wages paid by one or more employers who are liable for contributions, the amount of benefits payable by each employer that is liable for payments in lieu of contributions shall be an amount which bears the same ratio to the total benefits paid to the individual as the total base-period wages paid to the individual by such employer bear to the total base-period wages paid to the individual by all of his or her base-period employers.
(B) Proportionate allocation when all base-period employers are liable for reimbursement. If benefits paid to an individual are based on wages paid by two or more employers that are liable for payments in lieu of contributions, the amount of benefits payable by each employer shall be an amount which bears the same ratio to the total benefits paid to the individual as the total base-period wages paid to the individual by the employer bear to the total base-period wages paid to the individual by all of his or her base-period employers.
(6) Group accounts. Two or more employers that have become liable for payments in lieu of contributions, in accordance with the provisions of this section and section 1380 of this title, may file a joint application to the commissioner for the establishment of a group account for the purpose of sharing the cost of benefits paid that are attributable to service in the employ of such employers. Each application shall identify and authorize a group representative to act as the group's agent for the purpose of this section. Upon his or her approval of the application, the commissioner shall establish a group account for such employers effective as of the beginning of the calendar quarter in which he or she receives the application and shall notify the group's representative of the effective date of the account. The account shall remain in effect for not less than two years and thereafter until terminated at the discretion of the commissioner or upon application by the group. Upon establishment of the account, each member of the group shall be liable for payments in lieu of contributions with respect to each calendar quarter in the amount that bears the same ratio to the total benefits paid in such quarter that are attributable to service performed in the employ of all members of the group as the total wages paid for service in employment by such member in such quarter bear to the total wages paid during such quarter for service performed in the employ of all members of the group. The board shall prescribe regulations as it deems necessary with respect to applications for establishment, maintenance, and termination of group accounts that are authorized by this subdivision, for addition of new members to, and withdrawal of active members from, such accounts, and for the determination of the amounts that are payable under this section by members of the group and the time and manner of such payments.
(7) Notwithstanding any of the foregoing provisions of this section, any nonprofit organization that prior to January 1, 1969, paid contributions required by this section, and, pursuant to subsection (c) of this section, elects within 30 days after January 1, 1972, to make payments in lieu of contributions, shall not be required to make any such payment on account of any regular or extended benefits paid, on the basis of wages paid by such organization to individuals for weeks of unemployment which begin on and after the effective date of the election until the total amount of benefits equals the amount (1) by which the contributions paid by the organization with respect to the two-year period before the effective date of the election under subsection (b) of this section exceed (2) the total amount of unemployment benefits paid for the same period that were attributable to service performed in the employ of the organization and were charged to the experience rating record of the organization.
(d) In lieu of contributions required of employers subject to this chapter, the state of Vermont, including state hospitals but excluding any state institution of higher education, shall pay to the commissioner, for the unemployment compensation fund, an amount equal to the amount of benefits paid, including the full amount of extended benefits paid, attributable to service by individuals in the employ of the state. At the end of each calendar quarter, or at the end of any other period as determined by the commissioner, the commissioner shall bill the state for the amount of benefits paid during such quarter or other prescribed period that is attributable to service in the employ of the state. Subdivisions (3)(C) through (3)(F), inclusive, and subdivisions (5) and (6) of subsection (c) of this section as they apply to nonprofit organizations shall also apply to the state of Vermont, except that the state shall be liable for all benefits paid, including the full amount of extended benefits paid, attributable to service in the employ of the state.
(e) Any municipality, any state institution of higher education, and any political or governmental subdivisions or instrumentalities of the state shall pay contributions unless it elects to pay to the commissioner for the unemployment compensation fund, an amount equal to the amount of benefits paid, including the full amount of extended benefits paid, attributable to service by individuals in the employ of these entities. Subsections (a) and (b) and subdivisions (3)(C) through (3)(F), inclusive, and subdivisions (4) through (6), inclusive, of subsection (c) of this section as they apply to nonprofit organizations shall also apply to the entities designated in this subsection, except that these entities shall be liable for all benefits paid, including the full amount of extended benefits paid, attributable to service in the employ of these entities.
(1) Any entity designated in this subsection which is, or becomes, subject to this chapter on January 1, 1978 may elect to become liable for payments in lieu of contributions for a period of not less than one calendar year beginning with January 1, 1978 provided it files with the commissioner a written notice of its election within the 30-day period immediately following that date.
(2) Any entity designated in this subsection which becomes subject to this chapter after January 1, 1978 may elect to become liable for payments in lieu of contributions for a period of not less than one calendar year following the date on which the subjectivity begins by filing a written notice of its election with the commissioner not later than 30 days immediately following the date of the determination of that subjectivity.
(3) Any entity designated in this subsection which makes an election in accordance with subdivisions (1) and (2) of this subsection will continue to be liable for payments in lieu of contributions until it files with the commissioner a written notice terminating its election not later than 30 days prior to the beginning of the calendar year for which the termination shall first be effective.
(4) Any entity designated in this subsection which has been paying contributions under this chapter for a period subsequent to January 1, 1978 may change to a reimbursable basis by filing with the commissioner not later than 30 days prior to the beginning of any calendar year a written notice of election to become liable for payments in lieu of contributions. The election shall not be terminable by the organization for that year and the next year.
(5) The commissioner may for good cause extend the period within which a notice of election, or a notice of termination, must be filed and may permit an election to be retroactive but not any earlier than with respect to benefits paid after the date that entity became subject to this chapter.
(6) The commissioner shall notify each entity designated in this subsection of any determinations which he or she may make of its status as an employer and of the effective date of any election which it makes and of any termination of that election. The determination shall be subject to reconsideration and to appeal and review in accordance with the provisions of section 1337a of this title.
(f) Any employer who makes payments in lieu of contributions under the provisions of this section is considered to be self-insuring and shall pay to the commissioner for the unemployment compensation fund such amounts as the commissioner finds to be due under this chapter, including but not limited to benefits paid but denied on appeal or benefits paid in error which cannot be properly charged either against another employer who makes payments in lieu of contributions or against the experience-rating record of another employer who pays contributions. Benefits improperly paid where repayment by the claimant is ordered pursuant to subsection 1347(a) or 1347(b) of this title will be credited to the employer's account when repayment from the claimant is actually received by the commissioner. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1963, No. 106, § 1, eff. Jan. 1, 1964; 1971, No. 77, § 3, eff. Dec. 31, 1971; 1977, No. 64, §§ 8-11, 23; 1979, No. 120 (Adj. Sess.), § 7, eff. April 14, 1980; 1981, No. 86, § 9, eff. May 10, 1981; 1983, No. 16, §§ 3-5, eff. April 4, 1983; 1989, No. 132 (Adj. Sess.), § 4; 1991, No. 183 (Adj. Sess.), § 3; 2009, No. 2 (Sp. Sess.), § 1, eff. June 9, 2009.)