2015 -- H 6001

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LC002278

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO LABOR AND LABOR RELATIONS - EMPLOYMENT SECURITY -

VOLUNTARY CONTRIBUTIONS

     

     Introduced By: Representatives DeSimone, Palangio, and Ackerman

     Date Introduced: March 27, 2015

     Referred To: House Labor

     It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 28-43-1 and 28-43-3 of the General Laws in Chapter 28-43

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entitled "Employment Security - Contributions" are hereby amended to read as follows:

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     28-43-1. Definitions. -- The following words and phrases as used in this chapter have the

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following meanings, unless the context clearly requires otherwise:

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      (1) "Balancing account" means a book account to be established within the employment

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security fund, the initial balance of which shall be established by the director as of September 30,

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1979, by transferring the balance of the solvency account on that date to the balancing account.

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      (2) "Computation date" means September 30 of each year.

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      (3) "Eligible employer" means an employer who has had three (3) consecutive

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experience years during each of which contributions have been credited to his account and

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benefits have been chargeable to this account.

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      (4) "Employer's account" means a separate account to be established within the

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employment security fund by the director as of September 30, 1958, for each employer subject to

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chapters 42 -- 44 of this title out of the money remaining in that fund after the solvency account

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has been established in the fund, by crediting to each employer an initial credit balance bearing

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the same relation to the total fund balance so distributed, as his or her tax contributions to the

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fund during the period beginning October 1, 1955 and ending on September 30, 1958 have to

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aggregate tax contributions paid by all employers during the same period; provided, that nothing

 

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contained in this section shall be construed to grant to any employer prior claim or rights to the

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amount contributed by him or her to the fund.

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      (5) "Experience rate" means the contribution rate assigned to an employer's account

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under whichever is applicable of schedules A -- I in § 28-43-8.

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      (6) "Experience year" means the period of twelve (12) consecutive calendar months

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ending September 30 of each year.

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      (7) "Most recent employer" means the last base period employer from whom an

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individual was separated from employment and for whom the individual worked for at least four

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(4) weeks, and in each of those four (4) weeks had earnings of at least twenty (20) times the

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minimum hourly wage as defined in chapter 12 of this title.

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      (8) "Reserve percentage" means, in relation to an employer's account, the net balance of

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that account on a computation date, including any voluntary contributions made in accordance

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with § 28-43-5.1, stated as a percentage of the employer's twelve (12) month average taxable

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payroll for the last thirty-six (36) months ended on the immediately preceding June 30.

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      (9) "Reserve ratio of fund" means the ratio which the total amount available for the

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payment of benefits in the employment security fund on September 30, 1979, or any computation

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date thereafter, minus any outstanding federal loan balance, bears to the aggregate of all total

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payrolls subject to this chapter paid during the twelve (12) month period ending on the

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immediately preceding June 30, or the twelve (12) month average of all total payrolls during the

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thirty-six (36) month period ending on that June 30, whichever percentage figure is smaller.

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      (10) "Taxable payroll" means, for the purpose of this chapter, the total of all wages as

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defined in § 28-42-3(28).

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      (11) "Tax year" means the calendar year.

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      (12) "Total payroll" means, for the purpose of this chapter, the total of all wages paid by

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all employers who are required to pay contributions under the provisions of chapters 42 -- 44 of

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this title.

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      (13) "Voluntary contribution" means a contribution paid by an employer to his or her

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account in accordance with § 28-43-5.1 to reduce the employer's experience rate for the ensuing

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tax year.

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     28-43-3. Employer's accounts -- Credits and charges. -- Subsequent to the

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establishment of a separate employer's account for each employer subject to chapters 42 -- 44 of

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this title as set forth in § 28-43-1(4), the credits and charges to each employer's account, exclusive

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of the state of Rhode Island, its political subdivisions, and their instrumentalities, shall be

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determined as follows:

 

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      (1) Credits to each employer's account:

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      (i) After the September 30, 1958 computation date all contributions required under § 28-

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43-8 and paid by each employer.

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     (ii) All surcharges required and paid under § 28-43-4.

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     (iii) All voluntary contributions made by the employer made in accordance with § 28-43-

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5.1.

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     (2) Charges to each employer's account:

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     (i) Refunds of overpayments under § 28-43-13, as of the date refunded;

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     (ii) For benefit years beginning subsequent to September 30, 1993, an amount equal to

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the benefits provided in §§ 28-44-6(a) and (b), 28-44-7, and 28-44-8, and paid to each individual

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with respect to a benefit year, as of the date paid. Those benefits shall be charged to the account

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of the most recent base period employer, as defined in § 28-43-1(7); provided, that if a claimant

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works for two (2) or more employers concurrently, either full-time or part-time, and becomes

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unemployed on the same day from more than one employer, any benefits paid as a result of the

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unemployment shall be charged to the employers' accounts proportionately based upon the ratio

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of base period wages paid by each employer to the total base period wages paid by the concurrent

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employers from whom the claimant became separated from employment. No charge for benefits

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paid under § 28-44-7 shall be made against the account of any employer who shows to the

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satisfaction of the director that he or she has continued to employ the individual during the weeks

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of his or her claim to the same extent that he or she had employed him or her during that

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individual's base period, and those benefits, if not chargeable to the most recent base period

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employer, shall be charged to the balancing account.

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      (iii) If any base period employer, whether or not he or she was the most recent, shows to

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the satisfaction of the director that the individual who is in receipt of benefits became separated

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from his or her last employment with that employer for reasons which did result or would have

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resulted in a disqualification under § 28-44-17 or 28-44-18 had that base period employer been

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his or her most recent, those benefits shall be charged to the balancing account.

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      (iv) The entire amount charged to the employer's account under § 28-43-9 relating to the

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balancing rate.

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      (v) Whenever the provisions in this section specify that an employer's account shall not

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be charged, that non-charging shall be limited to benefits paid based on service with an employer

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required to pay contributions under the provisions of chapters 42 -- 44 of this title.

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      (vi) An amount equal to the benefits provided in § 28-44-62 and paid to each individual

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with respect to a benefit year as of the date paid minus the proportionate share of those benefits

 

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for which the state has been or will be reimbursed by the federal government. The federal share of

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any payments shall be charged to the balancing account and federal reimbursements shall be

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credited to the balancing account.

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      (vii) Whenever any benefits are paid for benefit years beginning subsequent to July 7,

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1996 to an individual unemployed as a result of physical damage to the real property at the

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employer's usual place of business caused by severe weather conditions, including, but not

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limited to, hurricanes, snowstorms, ice storms or flooding, or fire except where caused by the

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employer, those benefits shall be charged to the balancing account.

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      (viii) An employer's account shall not be relieved of charges relating to any benefits

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payments made if the director establishes on or after October 1, 2013 that the payment was made

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because the employer, or an agent of the employer, was at fault for failing to respond timely or

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adequately to the request of the department for information relating to the claim for

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unemployment benefits that was subsequently overpaid.

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     SECTION 2. Chapter 28-43 of the General Laws entitled "Employment Security -

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Contributions" is hereby amended by adding thereto the following section:

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     28-43-5.1. Employer's account - Voluntary contributions. -- Any employer who has

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been assigned an experience rate, and who has filed all reports required under chapters 42 through

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44 of this title, and has paid all contributions, interest and penalties due under chapters 42 through

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44 of this title, may make a voluntary contribution to his or her account. Such voluntary

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contribution shall be paid not later than thirty (30) days after the date on which the department

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has issued a notice of the employer's experience rate, or prior to the expiration of one hundred

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twenty (120) days after the start of the calendar year, for which the experience rate is effective,

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whichever is earlier. Upon timely payment of a voluntary contribution, the contribution shall be

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credited to the employer's account balance, and that employer shall receive a recomputation of its

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experience rate for that calendar year. No voluntary contribution shall be refunded in whole or in

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part.

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     SECTION 3. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO LABOR AND LABOR RELATIONS - EMPLOYMENT SECURITY -

VOLUNTARY CONTRIBUTIONS

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     This act would allow employers to make voluntary contributions to their unemployment

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account, in order to lower their unemployment insurance tax rate for the following calendar year.

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     This act would take effect upon passage.

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