Vermont § 1321 - Contributions; taxable wage base changes

§ 1321. Contributions; taxable wage base changes

• (a) Payment of contributions. Contributions shall accrue and become payable by each employer for each calendar
  year in which the employer is subject to this chapter, with respect to wages paid
  for employment, as defined in subdivision 1301(6) of this subchapter, occurring during
  the calendar year, except as otherwise provided in this section. The contributions
  shall become due and be payable at times and in installments prescribed by the Board. (b) Base of contributions. The term “wages” shall not include that part of remuneration that, after remuneration
  equal to $13,000.00 on January 1, 2011, and $16,000.00 on January 1, 2012, 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. After January 1, 2012, whenever the Unemployment
  Compensation Fund has a positive balance and all advances made to the State Unemployment
  Compensation Fund pursuant to Title XII of the Social Security Act have been repaid
  as of June 1, the base of contribution amount shall be adjusted on January 1 of the
  following year by the same percentage as any increase in the State annual average
  wage as calculated pursuant to subsection 1338(g) of this subchapter. When the unemployment
  contribution rate schedule established by subsection 1326(e) of this subchapter is
  reduced to schedule III, the base of contribution amount shall be reduced by $2,000.00
  on January 1 of the following year and shall be adjusted annually thereafter on January
  1 of the following year by the same percentage as any increase in the State annual
  average wage as calculated pursuant to subsection 1338(g) of this subchapter. When
  the unemployment contribution rate schedule established by subsection 1326(e) of this
  subchapter is reduced to schedule I, the base of contribution amount shall be reduced
  by $2,000.00 on January 1 of the following year and shall be adjusted annually thereafter
  on January 1 of the following year by the same percentage as any increase in the State
  annual average wage as calculated pursuant to subsection 1338(g) of this subchapter.
  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 the 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. (A) Benefits paid to employees of nonprofit organizations shall be financed in accordance
  with the provisions of this subsection (c). (B) As used in this subsection (c), “nonprofit organization” means an organization, or
  group of organizations, described in Section 501(c)(3) of the U.S. Internal Revenue Code that is exempt from income tax under Section 501(a) of the Internal Revenue Code. (2) Liability for contributions and election of reimbursement. Any nonprofit organization that, pursuant to subdivision 1301(5)(B)(i) of this chapter,
  is or becomes subject to this chapter 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 Insurance Trust 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 the nonprofit organization to individuals for weeks of
  unemployment that begin during the effective period of the election. (A) [Repealed.] (B) Any nonprofit organization that becomes subject to this chapter may elect to become
  liable for payments in lieu of contributions for a period of not less than 12 months
  by filing a written notice of its election with the Commissioner not later than 30
  days immediately following the date of the determination that the organization is
  subject to this chapter. (C) Any nonprofit organization that makes an election in accordance with subdivision (B)
  of this subdivision (c)(2) shall 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. (D) Any nonprofit organization that has been paying contributions under this chapter may
  elect to become liable for payments in lieu of contributions 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. An election under
  this subdivision (c)(2)(D) 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. (F) The Commissioner, in accordance with any applicable rules adopted by the Board, shall
  notify each nonprofit organization of any determination that the Commissioner makes
  with regard to its status as an employer and the effective date of any election that
  the organization makes and of any termination of an election. The 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 (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 nonprofit organizations, that 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 the quarter or other prescribed period that is attributable
  to service in the employ of the organization. (B)(i) Each nonprofit organization that has elected payments in lieu of contributions may
  request permission to make payments as provided in this subdivision (c)(3)(B). Payment
  pursuant to the provisions of this subdivision (c)(3)(B) shall become effective upon
  approval of the Commissioner. (ii) At the end of each calendar quarter, the Commissioner shall bill each nonprofit organization
  approved to make payments pursuant to the provisions of this subdivision (c)(3)(B)
  for an amount representing a percentage of its total payroll for the immediately preceding
  calendar year that the Commissioner determines to be appropriate based on the average
  benefit costs attributable to service in the employ of nonprofit organizations during
  the preceding calendar year. The Commissioner may determine a different rate for any
  organization that did not pay wages throughout the four calendar quarters of the preceding
  calendar year. (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 the 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 the taxable year based on wages attributable to service
  in the employ of the organization. Each nonprofit organization whose total payments
  for the year are less than the amount determined shall be liable for payment of the
  unpaid balance to the Trust Fund in accordance with subdivision (C) of this subdivision
  (c)(3). 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 Trust Fund or retained in the Trust Fund as part of the payments
  that may be required for the next calendar year. (C) Payment of any bill rendered under subdivision (2) of this subsection (c) or this
  subdivision (c)(3) 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 (E) of this
  subdivision (c)(3). (D) Payments made by any nonprofit organization 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)(i) 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 the application or petition. (ii) 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 an 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. (iii) Proceedings on the petition for a hearing before a referee on the amount of a bill
  rendered under this section or a redetermination of the 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, that 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) The employer shall be liable for any reports required by the Commissioner pursuant
  to sections 1314 and 1322 of this title. (ii) The employer shall be liable for any penalty imposed pursuant to sections 1314 and 1328 of this title. (iii) The employer shall be liable for the same interest on past due payments pursuant to
  subsection 1329(a) of this title. (iv) The 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. (v) The employer shall be subject to actions for the collection of past due payments as
  if those payments were contributions pursuant to subsections 1329(c) and (d) and 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 this subsection, the Commissioner may terminate the 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. (A) Each employer that is liable for payments in lieu of contributions shall pay to the
  Commissioner for the Trust 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 the employer. (B) If benefits paid to an individual are based on wages paid by more than one employer
  and one or more of the employers are liable for payments in lieu of contributions,
  the amount payable to the Trust Fund by each employer that is liable for payments
  in lieu of contributions shall be an amount that 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 the individual’s 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 the employers. Each application shall identify and authorize
  a group representative to act as the group’s agent for the purpose of this section.
  Upon approval of the application, the Commissioner shall establish a group account
  for the employers effective as of the beginning of the calendar quarter in which the
  Commissioner 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 the 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 the member in the
  quarter bear to the total wages paid during the quarter for service performed in the
  employ of all members of the group. The Board shall adopt rules 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 subsection by members of the group and the
  time and manner of the payments. (7) [Repealed.] (d) Financing benefits paid to employees of State. 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 Trust
  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 the quarter or other prescribed period that is attributable to service
  in the employ of the State. Subdivisions (c)(3)(C) through (3)(F), inclusive, and
  subdivisions (c)(5) and (6) 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) Contributions paid by political subdivisions. 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 Trust
  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
  entity. Subsections (a) and (b) and subdivisions (c)(3)(C) through (3)(F), inclusive,
  and subdivisions (c)(4) through (6), inclusive, 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 may elect to become liable for payments in
  lieu of contributions for a period of not less than one calendar year if 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 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 it becomes subject to the provisions of this chapter 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 that 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 that has been paying contributions under
  this chapter 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
  that the Commissioner makes regarding its status as an employer and of the effective
  date of any election that 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 subchapter. (f) Payments in lieu of contributions considered self-insuring. 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 Trust Fund any amounts the Commissioner finds to be
  due under this chapter, including benefits paid but denied on appeal or benefits paid
  in error that 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 (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; 2009, No. 124 (Adj. Sess.), § 2; 2023, No. 76, § 41, eff. July 1, 2023; 2023, No. 85 (Adj. Sess.), § 180, eff. July 1, 2024; 2023, No. 184 (Adj. Sess.), § 6, eff. July 1, 2024; 2025, No. 18, § 33, eff. May 13, 2025.)