Ohio § 4141.25

§ 4141.25.

(A) The director of job and family services shall determine as of each computation date

the contribution rate of each contributing employer subject to this chapter for the

next succeeding contribution period.  The director shall determine a standard rate of contribution or an experience rate

for each contributing employer.  Once a rate of contribution has been established under this section for a contribution

period, except as provided in division (D) of section 4141.26 of the Revised Code , that rate shall remain effective throughout such contribution period.  The rate of contribution shall be determined in accordance with the following requirements: (1) An employer whose experience does not meet the terms of division (A)(2) of this section

shall be assigned a standard rate of contribution.  Effective for contribution periods beginning on and after January 1, 1998, an employer's

standard rate of contribution shall be a rate of two and seven-tenths per cent, except

that the rate for employers engaged in the construction industry shall be the average

contribution rate computed for the construction industry or a rate of two and seven-tenths

per cent, whichever is greater.  The standard rate set forth in this division shall be applicable to a nonprofit

organization whose election to make payments in lieu of contributions is voluntarily

terminated or canceled by the director under section 4141.241 of the Revised Code , and thereafter pays contributions as required by this section.  If such nonprofit organization had been a contributory employer prior to its election

to make payments in lieu of contributions, then any prior balance in the contributory

account shall become part of the reactivated account. As used in division (A) of this section, “the average contribution rate computed for the construction industry ” means the most recent annual average rate attributable to the construction industry

as prescribed by the director. (2) A contributing employer subject to this chapter shall qualify for an experience rate

only if there have been four consecutive quarters, ending on the thirtieth day of

June immediately prior to the computation date, throughout which the employer's account

was chargeable with benefits.  Upon meeting the qualifying requirements provided in division (A)(2) of this section,

the director shall calculate the total credits to each employer's account consisting

of the contributions other than mutualized contributions including all contributions

paid prior to the computation date for all past periods plus: (a) The contributions owing on the computation date that are paid within thirty days

after the computation date, and credited to the employer's account; (b) All voluntary contributions paid by an employer pursuant to division (B) of section 4141.24 of the Revised Code . (3) The director also shall determine the benefits which are chargeable to each employer's

account and which were paid prior to the computation date with respect to weeks of

unemployment ending prior to the computation date.  The director then shall determine the positive or negative balance of each employer's

account by calculating the excess of such contributions and interest over the benefits

chargeable, or the excess of such benefits over such contributions and interest.  Any resulting negative balance then shall be subject to adjustment as provided in division (A)(2) of section 4141.24 of the Revised Code after which the positive or negative balance shall be expressed in terms of a percentage

of the employer's average annual payroll.  If the total standing to the credit of an employer's account exceeds the total charges,

as provided in this division, the employer has a positive balance and if such charges

exceed such credits the employer has a negative balance.  Each employer's contribution rate shall then be determined in accordance with the

following schedule: Contribution Rate Schedule If, as of the computation date the contribution rate balance of an employer's account

as a percentage of the employer's average annual payroll is The employer's contribution rate for the next succeeding contribution period shall

be (a) A negative balance of: 20.0% or more 6.5% 19.0% but less than 20.0% 6.4% 17.0% but less than 19.0% 6.3% 15.0% but less than 17.0% 6.2% 13.0% but less than 15.0% 6.1% 11.0% but less than 13.0% 6.0% 9.0% but less than 11.0% 5.9% 5.0% but less than 9.0% 5.7% 4.0% but less than 5.0% 5.5% 3.0% but less than 4.0% 5.3% 2.0% but less than 3.0% 5.1% 1.0% but less than 2.0% 4.9% more than 0.0% but less than 1.0% 4.8% (b) A 0.0% or a positive balance of less than 1.0% 4.7% (c) A positive balance of: 1.0% or more, but less than 1.5% 4.6% 1.5% or more, but less than 2.0% 4.5% 2.0% or more, but less than 2.5% 4.3% 2.5% or more, but less than 3.0% 4.0% 3.0% or more, but less than 3.5% 3.8% 3.5% or more, but less than 4.0% 3.5% 4.0% or more, but less than 4.5% 3.3% 4.5% or more, but less than 5.0% 3.0% 5.0% or more, but less than 5.5% 2.8% 5.5% or more, but less than 6.0% 2.5% 6.0% or more, but less than 6.5% 2.2% 6.5% or more, but less than 7.0% 2.0% 7.0% or more, but less than 7.5% 1.8% 7.5% or more, but less than 8.0% 1.6% 8.0% or more, but less than 8.5% 1.4% 8.5% or more, but less than 9.0% 1.3% 9.0% or more, but less than 9.5% 1.1% 9.5% or more, but less than 10.0% 1.0% 10.0% or more, but less than 10.5% .9% 10.5% or more, but less than 11.0% .7% 11.0% or more, but less than 11.5% .6% 11.5% or more, but less than 12.0% .5% 12.0% or more, but less than 12.5% .4% 12.5% or more, but less than 13.0% .3% 13.0% or more, but less than 14.0% .2% 14.0% or more .1% (d) The contribution rates shall be as specified in divisions (a), (b), and (c) of the

contribution rate schedule except that notwithstanding the amendments made to division

(a) of the contribution rate schedule in this section, if, as of the computation date:

 for 1991, the negative balance is 5.0% or more, the contribution rate shall be 5.7%;

 for 1992, if the negative balance is 11.0% or more, the contribution rate shall be

6.0%;  and for 1993, if the negative balance is 17.0% or more, the contribution rate

shall be 6.3%.  Thereafter, the contribution rates shall be as specified in the contribution rate

schedule. (B)(1) The director shall establish and maintain a separate account to be known as the “mutualized

account.”  As of each computation date there shall be charged to this account: (a) As provided in division (A)(2) of section 4141.24 of the Revised Code , an amount equal to the sum of that portion of the negative balances of employer

accounts which exceeds the applicable limitations as such balances are computed under

division (A) of this section as of such date; (b) An amount equal to the sum of the negative balances remaining in employer accounts

which have been closed during the year immediately preceding such computation date

pursuant to division (E) of section 4141.24 of the Revised Code ; (c) An amount equal to the sum of all benefits improperly paid preceding such computation

date which are not recovered but which are not charged to an employer's account, or

which after being charged, are credited back to an employer's account; (d) An amount equal to the sum of any other benefits paid preceding such computation

date which, under this chapter, are not chargeable to an employer's account; (e) An amount equal to the sum of any refunds made during the year immediately preceding

such computation date of erroneously collected mutualized contributions required by

this division which were previously credited to this account; (f) An amount equal to the sum of any repayments made to the federal government during

the year immediately preceding such computation date of amounts which may have been

advanced by it to the unemployment compensation fund under section 1201 of the “Social

Security Act,” 49 Stat. 648 (1935), 42 U.S.C. 301 ; (g) Any amounts appropriated by the general assembly out of funds paid by the federal

government, under section 903 of the “Social Security Act,” to the account of this

state in the federal unemployment trust fund. (2) As of every computation date there shall be credited to the mutualized account provided

for in this division: (a) The proceeds of the mutualized contributions as provided in this division; (b) Any positive balances remaining in employer accounts which are closed as provided

in division (E) of section 4141.24 of the Revised Code ; (c) Any benefits improperly paid which are recovered but which cannot be credited to

an employer's account; (d) All amounts which may be paid by the federal government under section 903 of the

“Social Security Act” to the account of this state in the federal unemployment trust

fund; (e) Amounts advanced by the federal government to the account of this state in the federal

unemployment trust fund under section 1201 of the “Social Security Act” to the extent

such advances have been repaid to or recovered by the federal government; (f) Interest credited to the Ohio unemployment trust fund as deposited with the secretary

of the treasury of the United States; (g) Amounts deposited into the unemployment compensation fund for penalties collected

pursuant to division (A)(4) of section 4141.35 of the Revised Code . (3) Annually, as of the computation date, the director shall determine the total credits

and charges made to the mutualized account during the preceding twelve months and

the overall condition of the account.  The director shall issue an annual statement containing this information and such

other information as the director deems pertinent, including a report that the sum

of the balances in the mutualized account, employers' accounts, and any subsidiary

accounts equal the balance in the state's unemployment trust fund maintained under

section 904 of the “Social Security Act.” (4) As used in this division: (a) “ Fund as of the computation date ” means as of any computation date, the aggregate amount of the unemployment compensation

fund, including all contributions owing on the computation date that are paid within

thirty days thereafter, all payments in lieu of contributions that are paid within

sixty days after the computation date, all reimbursements of the federal share of

extended benefits described in section 4141.301 of the Revised Code that are owing on the computation date, and all interest earned by the fund and received

on or before the computation date from the federal government. (b) “ Minimum safe level ” means an amount equal to two standard deviations above the average of the adjusted

annual average unemployment compensation benefit payment from 1970 to the most recent

calendar year prior to the computation date, as determined by the director pursuant

to division (B)(4)(b) of this section.  To determine the adjusted annual payment of unemployment compensation benefits,

the director first shall multiply the number of weeks compensated during each calendar

year beginning with 1970 by the most recent annual average weekly unemployment compensation

benefit payment and then compute the average and standard deviation of the resultant

products. (c) “ Annual average weekly unemployment compensation benefit payment ” means the amount resulting from dividing the unemployment compensation benefits

paid from the benefit account maintained within the unemployment compensation fund

pursuant to section 4141.09 of the Revised Code , by the number of weeks compensated during the same time period. (5) If, as of any computation date, the charges to the mutualized account during the

entire period subsequent to the computation date, July 1, 1966, made in accordance

with division (B)(1) of this section, exceed the credits to such account including

mutualized contributions during such period, made in accordance with division (B)(2)

of this section, the amount of such excess charges shall be recovered during the next

contribution period.  To recover such amount, the director shall compute the percentage ratio of such

excess charges to the average annual payroll of all employers eligible for an experience

rate under division (A) of this section.  The percentage so determined shall be computed to the nearest tenth of one per cent

and shall be an additional contribution rate to be applied to the wages paid by each

employer whose rate is computed under the provisions of division (A) of this section

in the contribution period next following such computation date, but such percentage

shall not exceed five-tenths of one per cent;  however, when there are any excess

charges in the mutualized account, as computed in this division, then the mutualized

contribution rate shall not be less than one-tenth of one per cent. (6) If the fund as of the computation date is above or below minimum safe level, the

contribution rates provided for in each classification in division (A)(3) of this

section for the next contribution period shall be adjusted as follows: (a) If the fund is thirty per cent or more above minimum safe level, the contribution

rates provided in division (A)(3) of this section shall be decreased two-tenths of

one per cent. (b) If the fund is more than fifteen per cent but less than thirty per cent above minimum

safe level, the contribution rates provided in division (A)(3) of this section shall

be decreased one-tenth of one per cent. (c) If the fund is more than fifteen per cent but less than thirty per cent below minimum

safe level, the contribution rates of all employers shall be increased twenty-five

one-thousandths of one per cent plus a per cent increase calculated and rounded pursuant

to division (B)(6)(g) of this section. (d) If the fund is more than thirty per cent but less than forty-five per cent below

minimum safe level, the contribution rates of all employers shall be increased seventy-five

one-thousandths of one per cent plus a per cent increase calculated and rounded pursuant

to division (B)(6)(g) of this section. (e) If the fund is more than forty-five per cent but less than sixty per cent below minimum

safe level, the contribution rates of all employers shall be increased one-eighth

of one per cent plus a per cent increase calculated and rounded pursuant to division

(B)(6)(g) of this section. (f) If the fund is sixty per cent or more below minimum safe level, the contribution

rates of all employers shall be increased two-tenths of one per cent plus a per cent

increase calculated and rounded pursuant to division (B)(6)(g) of this section. (g) The additional per cent increase in contribution rates required by divisions (B)(6)(c),

(d), (e), and (f) of this section that is payable by each individual employer shall

be calculated in the following manner.  The flat rate increase required by a particular division shall be multiplied by

three and the product divided by the average experienced-rated contribution rate for

all employers as determined by the director for the most recent calendar year.  The resulting quotient shall be multiplied by an individual employer's contribution

rate determined pursuant to division (A)(3) of this section.  The resulting product shall be rounded to the nearest tenth of one per cent, added

to the flat rate increase required by division (B)(6)(c), (d), (e), or (f) of this

section, as appropriate, and the total shall be rounded to the nearest tenth of one

per cent.  As used in division (B)(6)(g) of this section, the “ average experienced-rated contribution rate ” means the most recent annual average contribution rate reported by the director

contained in report RS 203.2 less the mutualized and minimum safe level contribution

rates included in such rate. (h) If any of the increased contribution rates of division (B)(6)(c), (d), (e), or (f)

of this section are imposed, the rate shall remain in effect for the calendar year

in which it is imposed and for each calendar year thereafter until the director determines

as of the computation date for calendar year 1991 and as of the computation date for

any calendar year thereafter pursuant to this section, that the level of the unemployment

compensation fund equals or exceeds the minimum safe level as defined in division

(B)(4)(b) of this section.  Nothing in division (B)(6)(h) of this section shall be construed as restricting

the imposition of the increased contribution rates provided in divisions (B)(6)(c),

(d), (e), and (f) of this section if the fund falls below the percentage of the minimum

safe level as specified in those divisions. (7) The additional contributions required by division (B)(5) of this section shall be

credited to the mutualized account.  The additional contributions required by division (B)(6) of this section shall be

credited fifty per cent to individual employer accounts and fifty per cent to the

mutualized account. (C) If an employer makes a payment of contributions which is less than the full amount

required by this section and sections 4141.23 , 4141.24 , 4141.241 , 4141.242 , 4141.25 , 4141.26 , and 4141.27 of the Revised Code , such partial payment shall be applied first against the mutualized contributions

required under this chapter.  Any remaining partial payment shall be credited to the employer's individual account. (D) Whenever there are any increases in contributions resulting from an increase in wages

subject to contributions as defined in division (G) of section 4141.01 of the Revised Code , or from an increase in the mutualized rate of contributions provided in division

(B) of this section, or from a revision of the contribution rate schedule provided

in division (A) of this section, except for that portion of the increase attributable

to a change in the positive or negative balance in an employer's account, which increases

become effective after a contract for the construction of real property, as defined

in section 5701.02 of the Revised Code , has been entered into, the contractee upon written notice by a prime contractor

shall reimburse the contractor for all increased contributions paid by the prime contractor

or by subcontractors upon wages for services performed under the contract.  Upon reimbursement by the contractee to the prime contractor, the prime contractor

shall reimburse each subcontractor for the increased contributions. (E) Effective only for the contribution period beginning on January 1, 1996, and ending

on December 31, 1996, mutualized contributions collected or received by the director

pursuant to division (B)(5) of this section and amounts credited to the mutualized

account pursuant to division (B)(7) of this section shall be deposited into or credited

to the unemployment compensation benefit reserve fund that is created under division

(F) of this section, except that amounts collected, received, or credited in excess

of two hundred million dollars shall be deposited into or credited to the unemployment

trust fund established pursuant to section 4141.09 of the Revised Code . (F) The state unemployment compensation benefit reserve fund is hereby created as a trust

fund in the custody of the treasurer of state and shall not be part of the state treasury.  The fund shall consist of all moneys collected or received as mutualized contributions

pursuant to division (B)(5) of this section and amounts credited to the mutualized

account pursuant to division (B)(7) of this section as provided by division (E) of

this section.  All moneys in the fund shall be used solely to pay unemployment compensation benefits

in the event that funds are no longer available for that purpose from the unemployment

trust fund established pursuant to section 4141.09 of the Revised Code . (G) The balance in the unemployment compensation benefit reserve fund remaining at the

end of the contribution period beginning January 1, 2000, and any mutualized contribution

amounts for the contribution period beginning on January 1, 1996, that may be received

after December 31, 2000, shall be deposited into the unemployment trust fund established

pursuant to section 4141.09 of the Revised Code .  Income earned on moneys in the state unemployment compensation benefit reserve fund

shall be available for use by the director only for the purposes described in division

(I) of this section, and shall not be used for any other purpose. (H) The unemployment compensation benefit reserve fund balance shall be added to the

unemployment trust fund balance in determining the minimum safe level tax to be imposed

pursuant to division (B) of this section and shall be included in the mutualized account

balance for the purpose of determining the mutualized contribution rate pursuant to

division (B)(5) of this section. (I) All income earned on moneys in the unemployment compensation benefit reserve fund

from the investment of the fund by the treasurer of state shall accrue to the department

of job and family services automation administration fund, which is hereby established

in the state treasury.  Moneys within the automation administration fund shall be used to meet the costs

related to automation of the department and the administrative costs related to collecting

and accounting for unemployment compensation benefit reserve fund revenue.  Any funds remaining in the automation administration fund upon completion of the

department's automation projects that are funded by that fund shall be deposited into

the unemployment trust fund established pursuant to section 4141.09 of the Revised Code . (J) The director may approve funds for expenditure for purposes set forth in division

(I) of this section only to the extent that federal or other funds are not available.