GENERAL ASSEMBLY OF NORTH CAROLINA
EXTRA SESSION 1996
CHAPTER 1
The General Assembly of North Carolina enacts:
Section 1. G.S. 96-9(b)(1) reads as rewritten:
"(1) Beginning Rate. - The standard beginning rate of contributions for an employer is a percentage of wages paid by the employer during a calendar year for employment occurring during that year. The rate is determined in accordance with the following table:
Percentage Date After Which Employment Occurs
2.25% December 31, 1986
1.8
December 31, 1993. 1993
1.2 December 31, 1995"
Sec. 2. G.S. 96-9(b)(2) reads as rewritten:
"(2) Experience Rating. -
a. Waiting
Period for Rate Reduction. - No employer's contribution rate shall be
reduced below the standard rate for any calendar year unless and until his until
its account has been chargeable with benefits throughout more than 13
consecutive for at least 12 calendar months ending July 31
immediately preceding the computation date and his credit reserve ratio
meets the requirements of that schedule used in the computation. date.
b. Credit
Ratio. - The Commission shall, for each year, compute a credit reserve
ratio for each employer whose account has a credit balance and has been
chargeable with benefits as set forth in G.S. 96-9(b)(2)a of this Chapter. balance.
An employer's credit reserve ratio shall be the quotient obtained by
dividing the credit balance of such the employer's account as of
July 31 of each year by the total taxable payroll of such the employer
for the 36 calendar-month period ending June 30 preceding the computation date.
Credit balance as used in this section means the total of all contributions
paid and credited for all past periods in accordance with the provisions of
G.S. 96-9(c)(1) together with all other lawful credits to the account of the
employer less the total benefits charged to the account of the employer for all
past periods.
c. Debit
Ratio. - The Commission shall for each year compute a debit ratio for each
employer whose account shows that the total of all his its contributions
paid and credited for all past periods in accordance with the provisions of G.S.
96-9(c)(1) together with all other lawful credits is less than the total
benefits charged to his its account for all past periods.
An employer's debit ratio shall be the quotient obtained by dividing the debit
balance of such the employer's account as of July 31 of each year
by the total taxable payroll of such the employer for the 36
calendar-month period ending June 30 preceding the computation date. The amount
arrived at by subtracting the total amount of all contributions paid and
credited for all past 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 of
all benefits charged to the account of the employer for such periods is the
employer's debit balance.
d. Other
Provisions. - For purposes of this subsection, the first date on which an
account shall be chargeable with benefits shall be the first date with respect
to which a benefit year (as as defined in G.S. 96-8(17)[)] 96-8
can be established, based in whole or in part on wages paid by that
employer.
No employer's contribution rate shall be reduced below the standard rate for
any calendar year unless his its liability extends over a period
of all or part of three two consecutive calendar years and, as of
August 1 of the third second year, his its credit
reserve ratio meets the requirements of that schedule used in computing rates
for the following calendar year, unless the employer's liability was
established under G.S. 96-8(5)b and his its predecessor's account
was transferred as provided by G.S. 96-9(c)(4)a.
Whenever contributions are erroneously paid into one account which should have
been paid into another account or which should have been paid into a new
account, that erroneous payment can be adjusted only by refunding the erroneously
paid amounts to the paying entity. No pro rata adjustment to an existing
account may be made, nor can a new account be created by transferring any
portion of the erroneously paid amount, notwithstanding that the entities
involved may be owned, operated, or controlled by the same person or
organization. No adjustment of a contribution rate can be made reducing said
the rate below the standard rate for any period in which the account
was not in actual existence and in which it was not actually chargeable for
benefits. Whenever payments are found to have been made to the wrong account,
refunds can be made to the entity making the wrongful payment for a period not
exceeding five years from the last day of the calendar year in which it is
determined that wrongful payments were made. Notwithstanding payment into the
wrong account, any if an entity which is determined to
have met the requirements to be a covered employer, whether or not the entity
has had paid on the account of its employees any sum into another account, the
Commission shall collect contributions at the standard rate or the assigned
rate, whichever is higher, for the five years preceding the determination of
erroneous payments, said which five years to shall run
from the last day of the calendar year in which the determination of liability
for contributions or additional contributions is made. This paragraph shall
apply to all cases arising hereunder, the question of good faith
notwithstanding. requirement applies regardless of whether the employer
acted in good faith."
Sec. 3. (a) G. S. 96-9(b)(3)g. reads as rewritten:
"g. Any
employer may at any time make a voluntary contribution, additional to the
contributions required under this Chapter, to the fund to be credited to his
its account, and such voluntary contributions when made shall for
all intents and purposes be deemed 'contributions required' as said this
term is used in G.S. 96-8(8). Any voluntary contributions so made by an
employer within 30 days after the date of mailing by the Commission pursuant to
G.S. 96-9(c)(3) herein, of notification of contribution rate contained
in cumulative account statement and computation of rate, shall be credited to his
its account as of the previous July 31. Provided, however,
any voluntary contribution made as provided herein If, however, the
voluntary contribution is made after July 31 of any year it shall
not be considered a part of the balance of the unemployment insurance fund for
the purposes of G.S. 96-9(b)(3) until the following July 31. The Commission in
accepting a voluntary contribution shall not be bound by any condition
stipulated in or made a part of such the voluntary contribution
by any employer.
An employer that has a debit ratio under G.S. 96-9(b)(2)c. as of January 1, 1996, may make an additional contribution pursuant to this subdivision during the 1996 calendar year. If this voluntary contribution is made within 30 days after the Commission furnishes the employer an account status notice, this voluntary contribution shall be credited to the employer's account as of July 31, 1995."
(b) Effective January 1, 1997, the last paragraph of G.S. 96-9(b)(3)g., as added by subsection (a) of this section, is repealed.
Sec. 4. G.S. 96-9(b)(3) is amended by adding a new subdivision to read:
"d4. The standard beginning contribution rate set by subdivision (1) of this subsection applies to an employer unless the employer's account has a credit balance or a debit balance. Notwithstanding the provisions of subdivision (3)d3. of this subsection, beginning January 1, 1996, and for the calendar year 1996 only, the contribution rate of an employer whose account has a credit balance is determined in accordance with the rate set in the following Experience Rating Formula table for the applicable rate schedule.
EXPERIENCE RATING FORMULA
When The Credit Ratio Is:
As But
Much Less
As Than
Rate Schedules (%)
_____________ A_____ B_____ C_____ D_____ E_____ F_____ G_____ H_____ I __
0.0% 0.2% 2.70 2.70 2.70 0.00 0.00 0.00 0.00 0.00 0.00
0.2% 0.4% 2.70 2.70 2.70 0.00 0.00 0.00 0.00 0.00 0.00
0.4% 0.6% 2.70 2.70 2.50 0.00 0.00 0.00 0.00 0.00 0.00
0.6% 0.8% 2.70 2.50 2.30 0.00 0.00 0.00 0.00 0.00 0.00
0.8% 1.0% 2.50 2.30 2.10 0.00 0.00 0.00 0.00 0.00 0.00
1.0% 1.2% 2.30 2.10 1.90 0.00 0.00 0.00 0.00 0.00 0.00
1.2% 1.4% 2.10 1.90 1.70 0.00 0.00 0.00 0.00 0.00 0.00
1.4% 1.6% 1.90 1.70 1.50 0.00 0.00 0.00 0.00 0.00 0.00
1.6% 1.8% 1.70 1.50 1.30 0.00 0.00 0.00 0.00 0.00 0.00
1.8% 2.0% 1.50 1.30 1.10 0.00 0.00 0.00 0.00 0.00 0.00
2.0% 2.2% 1.30 1.10 0.90 0.00 0.00 0.00 0.00 0.00 0.00
2.2% 2.4% 1.10 0.90 0.80 0.00 0.00 0.00 0.00 0.00 0.00
2.4% 2.6% 0.90 0.80 0.70 0.00 0.00 0.00 0.00 0.00 0.00
2.6% 2.8% 0.80 0.70 0.60 0.00 0.00 0.00 0.00 0.00 0.00
2.8% 3.0% 0.70 0.60 0.50 0.00 0.00 0.00 0.00 0.00 0.00
3.0% 3.2% 0.60 0.50 0.40 0.00 0.00 0.00 0.00 0.00 0.00
3.2% 3.4% 0.50 0.40 0.30 0.00 0.00 0.00 0.00 0.00 0.00
3.4% 3.6% 0.40 0.30 0.20 0.00 0.00 0.00 0.00 0.00 0.00
3.6% 3.8% 0.30 0.20 0.15 0.00 0.00 0.00 0.00 0.00 0.00
3.8% 4.0% 0.20 0.15 0.10 0.00 0.00 0.00 0.00 0.00 0.00
4.0% 4.2% 0.15 0.10 0.09 0.00 0.00 0.00 0.00 0.00 0.00
4.2% 4.4% 0.10 0.09 0.08 0.00 0.00 0.00 0.00 0.00 0.00
4.4% 4.6% 0.09 0.08 0.07 0.00 0.00 0.00 0.00 0.00 0.00
4.6% 4.8% 0.08 0.07 0.06 0.00 0.00 0.00 0.00 0.00 0.00
4.8% 5.0% 0.07 0.06 0.05 0.00 0.00 0.00 0.00 0.00 0.00
5.0% OVER 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00"
Sec. 5. (a) The Legislative Research Commission is authorized to study issues relating to the State's Employment Security Law, Chapter 96 of the General Statutes. The Legislative Research Commission is encouraged to appoint at least one member of the minority political party in each house to participate in the study.
(b) The Commission may make an interim report of its recommendations regarding the Employment Security Law to the 1996 Regular Session of the 1995 General Assembly and shall make a final report to the 1997 General Assembly.
Sec. 6. Section 4 of this act is effective with respect to calendar quarters beginning on or after January 1, 1996, and before January 1, 1997. Section 3(b) of this act becomes effective January 1, 1997. The remainder of this act is effective upon ratification.
In the General Assembly read three times and ratified this the 21st day of February, 1996.
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Dennis A. Wicker
President of the Senate
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Harold J. Brubaker
Speaker of the House of Representatives