North Carolina § 96-9 - 7. Surtax for the Unemployment Insurance Reserve Fund.

§ 96-9. 7. Surtax for the Unemployment Insurance Reserve Fund.

Surtax Imposed. - A surtax is imposed on an employer who is required to make a contribution to the Unemployment Insurance Fund equal to twenty percent (20%) of the contribution due under G.S. 96-9.2. Except as provided in this section, the surtax is collected and administered in the same manner as contributions. Surtaxes collected under this section must be credited to the Unemployment Insurance Reserve Fund established under G.S. 96-6.2. Interest and penalties collected on unpaid surtaxes imposed by this section must be credited to the Supplemental Employment Security Administration Fund. Penalties collected on unpaid surtaxes imposed by this section must be transferred to the Civil Penalty and Forfeiture Fund established in G.S. 115C-457.1. Suspension of Tax. - The tax does not apply in a calendar year if, as of September 1 of the preceding calendar year, the amount in the State's account in the Unemployment Trust Fund equals or exceeds one billion dollars ($1,000,000,000). History (2013-2, s. 2(b); 2013-224, ss. 8, 19; 2017-8, s. 3.1(a).) Editor's Note. - Session Laws 2013-2, s. 11, as amended by Session Laws 2013-224, s. 19, provides: "This act becomes effective July 1, 2013. Changes made by this act to unemployment benefits apply to claims for benefits filed on or after June 30, 2013. The requirements of G.S. 96-15(a1) apply to any week of an attached claim filed on or after June 30, 2013. Changes made by this act to require an account balance by an employer that is a governmental entity or a nonprofit organization and that elects to finance benefits by making reimbursable payments in lieu of contributions apply to advance payments payable for calendar quarters beginning on or after July 1, 2013. Changes made by this act to the determination and application of the contribution rate apply to contributions payable for calendar quarters beginning on or after January 1, 2014." The reference to "G.S. 96-6.1" at the end of the third sentence of subsection (a), as amended by Session Laws 2013-224, s. 8, has been changed to "G.S. 96-6.2," at the direction of the Revisor of Statutes. Session Laws 2015-238, s. 4.3, provides: "Notwithstanding G.S. 96-9.7(b), the surtax imposed under G.S. 96-9.7 does not apply to the calendar year 2016 if the amount in the State's account in the Unemployment Trust Fund as of March 1, 2016, equals or exceeds one billion dollars ($1,000,000,000)." Session Laws 2017-8, s. 3.1(b), made the substitution of "September 1 of the preceding calendar year" for "the preceding August 1 computation date" in subsection (b) by Session Laws 2017-8, s. 3.1(a), effective July 1, 2017, and applicable to claims for benefits filed and tax calculations on or after that date. Effect of Amendments. - Session Laws 2013-224, s. 8, effective June 27, 2013, in subsection (a), substituted "G.S. 96-6.1" for "G.S. 96-6" in the third sentence, inserted "and penalties" in the fourth sentence, and substituted "must be transferred" for "must be credited" in the last sentence. Session Laws 2017-8, s. 3.1(a), substituted "September 1 of the preceding calendar year" for "the preceding August 1 computation date" in subsection (b). For effective date and applicability, see editor's note.