288.090. Contributions required, when--payments in lieu of contributions, procedures--common paymaster arrangements. - Missouri Statutes

Contributions required, when--payments in lieu of contributions,procedures--common paymaster arrangements.

288.090. 1. Contributions shall accrue and become payable by eachemployer for each calendar year in which he is subject to this law. Suchcontributions shall become due and be paid by each employer to the divisionfor the fund on or before the last day of the month following each calendarquarterly period of three months except when regulation requires monthlypayment. Any employer upon application, or pursuant to a general orspecial regulation, may be granted an extension of time, not exceedingthree months, for the making of his or her quarterly contribution and wagereports or for the payment of such contributions. Payment of contributionsdue shall be made to the treasurer designated pursuant to section 288.290.

(1) In the payment of any contributions due, a fractional part of acent shall be disregarded unless it amounts to one-half cent or more, inwhich case it shall be increased to one cent;

(2) Contributions shall not be deducted in whole or in part from thewages of individuals in employment.

2. As of June thirtieth of each year, the division shall establish anaverage industry contribution rate for the next succeeding calendar yearfor each of the industrial classification divisions listed in theindustrial classification system established by the federal government.The average industry contribution rate for each standard industrialclassification division shall be computed by multiplying total taxablewages paid by each employer in the industrial classification divisionduring the twelve consecutive months ending on June thirtieth by theemployer's contribution rate established for the next calendar year anddividing the aggregate product for all employers in the industrialclassification division by the total of taxable wages paid by all employersin the industrial classification division during the twelve consecutivemonths ending on June thirtieth. Each employer will be assigned to anindustrial classification code division as determined by the division inaccordance with the definitions contained in the industrial classificationsystem established by the federal government, and shall pay contributionsat the average industry rate established for the preceding calendar yearfor the industrial classification division to which it is assigned or twoand seven-tenths percent of taxable wages paid by it, whichever is thegreater, unless there have been at least twelve consecutive calendar monthsimmediately preceding the calculation date throughout which its accountcould have been charged with benefits. The division shall classify allemployers meeting this chargeability requirement for each calendar year inaccordance with their actual experience in the payment of contributions ontheir own behalf and with respect to benefits charged against theiraccounts, with a view to fixing such contribution rates as will reflectsuch experience. The division shall determine the contribution rate ofeach such employer in accordance with sections 288.113 to 288.126.Notwithstanding the provisions of this subsection, any employing unit whichbecomes an employer pursuant to the provisions of subsection 7 or 8 ofsection 288.034 shall pay contributions equal to one percent of wages paidby it until its account has been chargeable with benefits for the period oftime sufficient to enable it to qualify for a computed rate on the samebasis as other employers.

3. Benefits paid to employees of any governmental entity andnonprofit organizations shall be financed in accordance with the provisionsof this subsection. For the purpose of this subsection, a "nonprofitorganization" is an organization (or group of organizations) described inSection 501(c)(3) of the United States Internal Revenue Code which isexempt from income tax under Section 501(a) of such code.

(1) A governmental entity which, pursuant to subsection 7 of section288.034, or nonprofit organization which, pursuant to subsection 8 ofsection 288.034, is, or becomes, subject to this law on or after April 27,1972, shall pay contributions due under the provisions of subsections 1 and2 of this section unless it elects, in accordance with this subdivision, topay to the division for the unemployment compensation fund an amount equalto the amount of regular benefits and of one-half of the extended benefitspaid, that is attributable to service in the employ of such governmentalentity or nonprofit organization, to individuals for weeks of unemploymentwhich begin during the effective period of such election; except that, withrespect to benefits paid for weeks of unemployment beginning on or afterJanuary 1, 1979, any such election by a governmental entity shall be to payto the division for the unemployment compensation fund an amount equal tothe amount of all regular benefits and all extended benefits paid that isattributable to service in the employ of such governmental entity.

(a) A governmental entity or nonprofit organization which is, orbecomes, subject to this law on or after April 27, 1972, may elect tobecome liable for payments in lieu of contributions for a period of notless than one calendar year, provided it files with the division a writtennotice of its election within the thirty-day period immediately followingthe date of the determination of such subjectivity. The provisions ofparagraphs (a) through (e) of subdivision (4) of subsection 1 of section288.100 shall not apply in the calendar year 1998 and each calendar yearthereafter, in the case of an employer who has elected to become liable forpayments in lieu of contributions.

(b) A governmental entity or nonprofit organization which makes anelection in accordance with paragraph (a) of this subdivision will continueto be liable for payments in lieu of contributions until it files with thedivision a written notice terminating its election not later than thirtydays prior to the beginning of the calendar year for which such terminationshall first be effective.

(c) A governmental entity or any nonprofit organization which hasbeen paying contributions under this law for a period subsequent to January1, 1972, may change to a reimbursable basis by filing with the division notlater than thirty days prior to the beginning of any calendar year awritten notice of election to become liable for payments in lieu ofcontributions. Such election shall not be terminable by the organizationfor that and the next calendar year.

(d) The division, in accordance with such regulations as may beadopted, shall notify each governmental entity or nonprofit organization ofany determination of its status of an employer and of the effective date ofany election which it makes and of any termination of such election. Suchdetermination shall be subject to appeal as is provided in subsection 4 ofsection 288.130.

(2) Payments in lieu of contributions shall be made in accordancewith the provisions of paragraph (a) of this subdivision, as follows:

(a) At the end of each calendar quarter, or at the end of any otherperiod as determined by the director, the division shall bill thegovernmental entity or nonprofit organization (or group of suchorganizations) which has elected to make payments in lieu of contributionsfor an amount equal to the full amount of regular benefits plus one-half ofthe amount of extended benefits paid during such quarter or otherprescribed period that is attributable to service in the employ of suchorganization; except that, with respect to extended benefits paid for weeksof unemployment beginning on or after January 1, 1979, which areattributable to service in the employ of a governmental entity, thegovernmental entity shall be billed for the full amount of such extendedbenefits.

(b) Payment of any bill rendered under paragraph (a) of thissubdivision shall be due and shall be made not later than thirty days aftersuch bill was mailed to the last known address of the governmental entityor nonprofit organization or was otherwise delivered to it.

(c) Payments made by the governmental entity or nonprofitorganization under the provisions of this subsection shall not be deductedor deductible, in whole or in part, from the remuneration of individuals inthe employ of the organization.

(d) Past due payments of amounts in lieu of contributions shall besubject to the same interest and penalties that apply to past duecontributions. Also, unpaid amounts in lieu of contributions, interest,penalties and surcharges are subject to the same assessment, civil actionand compromise provisions of this law as apply to unpaid contributions.Further, the provisions of this law which provide for the adjustment orrefund of contributions shall apply to the adjustment or refund of paymentsin lieu of contributions.

(3) If any governmental entity or nonprofit organization fails totimely file a required quarterly wage report, the division shall assesssuch entity or organization a penalty as provided in subsections 1 and 2 ofsection 288.160.

(4) Except as provided in subsection 4 of this section, each employerthat is liable for payments in lieu of contributions shall pay to thedivision for the fund the amount of regular benefits plus the amount ofone-half of extended benefits paid that are attributable to service in theemploy of such employer; except that, with respect to benefits paid forweeks of unemployment beginning on or after January 1, 1979, a governmentalentity that is liable for payments in lieu of contributions shall pay tothe division for the fund the amount of all regular benefits and allextended benefits paid that are attributable to service in the employ ofsuch employer. If benefits paid to an individual are based on wages paidby more than one employer in the base period of the claim, the amountchargeable to each employer shall be obtained by multiplying the benefitspaid by a ratio obtained by dividing the base period wages from suchemployer by the total wages appearing in the base period.

(5) Two or more employers that have become liable for payments inlieu of contributions, in accordance with the provisions of subdivision (1)of this subsection, may file a joint application to the division for theestablishment of a group account for the purpose of sharing the cost ofbenefits paid that are attributable to service in the employ of suchemployers. Each such application shall identify and authorize a grouprepresentative to act as the group's agent for the purposes of thissubdivision. Upon approval of the application, the division shallestablish a group account for such employers effective as of the beginningof the calendar quarter in which the application was received and shallnotify the group's representative of the effective date of the account.Such account shall remain in effect for not less than two years andthereafter until terminated at the discretion of the director or uponapplication by the group. Upon establishment of the account, each memberof the group shall be liable for payments in lieu of contributions withrespect to each calendar quarter in the amount that bears the same ratio tothe total benefits paid in such quarter that are attributable to serviceperformed in the employ of all members of the group as the total wages paidfor service in employment by such member in such quarter bears to the totalwages paid during such quarter for service performed in the employ of allmembers of the group. The director shall prescribe such regulations as heor she deems necessary with respect to applications for establishment,maintenance and termination of group accounts that are authorized by thissubdivision, for addition of new members to, and withdrawal of activemembers from, such accounts, and for the determination of the amounts thatare payable under this subdivision by members of the group and the time andmanner of such payments.

4. Any employer which elects to make payments in lieu ofcontributions into the unemployment compensation fund as provided insubdivision (1) of subsection 3 of this section shall not be liable to makesuch payments with respect to the benefits paid to any individual whosebase period wages include wages for previous work not classified as insuredwork as defined in section 288.030 to the extent that the unemploymentcompensation fund is reimbursed for such benefits pursuant to Section 121of Public Law 94-566.

5. Any employer which elects to make payments in lieu ofcontributions pursuant to subsection 3 of this section shall be liable foran additional surcharge to the division for the unemployment compensationtrust fund in an amount equal to the interest rate on United Statestreasury bills, averaged for the previous four calendar quarters,multiplied by the total benefit payments charged to the employer's account.Governmental entities except cities, counties and the state of Missouriwhich elect to make payments in lieu of contributions pursuant tosubsection 3 of this section shall be liable for an additional surcharge tothe division for the unemployment compensation fund in an amount equal toone-half of the interest rate on United States treasury bills, averaged forthe previous four calendar quarters, multiplied by the total benefitpayments charged to the employer's account. The cumulative benefitscharged plus the cumulative surcharges pursuant to this subsection for allemployers electing to make payments in lieu of contributions shall notexceed the summation of total benefit payments chargeable and notchargeable for the calendar quarter. The provisions of this subsectionshall not be effective after September 30, 1993.

6. Beginning October 1, 1993, through December 31, 1993, any employerwhich elects to make payments in lieu of contributions pursuant tosubsection 3 of this section shall be liable for an additional surcharge tothe division for the unemployment compensation trust fund in an amountequal to the interest rate of United States treasury bills, averaged forthe previous four calendar quarters, multiplied by the total benefitpayments charged to the employer's account. The cumulative benefitscharged plus the cumulative surcharges pursuant to this subsection for allemployers electing to make payments in lieu of contributions shall notexceed the summation of total benefit payments chargeable and notchargeable for the calendar quarter.

7. Beginning January 1, 1994, through December 31, 1995, any employerwhich elects to make payments in lieu of contributions pursuant tosubsection 3 of this section shall be liable for an additional surcharge tothe division for the unemployment compensation trust fund. The calendaryear surcharge rate will be the base prime rate on corporate loans postedby at least seventy-five percent of the nation's thirty largest banks as ofNovember thirtieth of the preceding year. The additional surcharge will bethe surcharge rate multiplied by the total benefit payments charged to theemployer's account. The cumulative benefits charged plus the cumulativesurcharges pursuant to this subsection for all employers electing to makepayments in lieu of contributions shall not exceed the summation of totalbenefit payments chargeable and not chargeable for the calendar quarter.

8. Beginning January 1, 1996, through December 31, 1996, any employerwhich elects to make payments in lieu of contributions pursuant tosubsection 3 of this section shall be liable for the total benefit paymentschargeable to its account pursuant to the provisions of section 288.100plus one-third of the total benefit payments not charged to its accountpursuant to paragraphs (a) through (e) of subdivision (4) of subsection 1of section 288.100. The remaining two-thirds of the benefit payments notcharged to its account pursuant to paragraphs (a) through (e) ofsubdivision (4) of subsection 1 of section 288.100 shall be paid by theunemployment compensation trust fund.

9. Beginning January 1, 1997, through December 31, 1997, any employerwhich elects to make payments in lieu of contributions pursuant tosubsection 3 of this section shall be liable for the total benefit paymentschargeable to its account pursuant to the provisions of section 288.100plus two-thirds of the total benefit payments not charged to its accountpursuant to paragraphs (a) through (e) of subdivision (4) of subsection 1of section 288.100. The remaining one-third of the benefit payments notcharged to its account pursuant to paragraphs (a) through (e) ofsubdivision (4) of subsection 1 of section 288.100 shall be paid by theunemployment compensation trust fund.

10. Beginning January 1, 1998, and each calendar year thereafter, anyemployer which elects to make payments in lieu of contributions pursuant tosubsection 3 of this section shall be liable for all benefit payments andshall not have charges relieved pursuant to the provisions of paragraphs(a) through (e) of subdivision (4) of subsection 1 of section 288.100.

11. (1) For the purposes of this chapter, a common paymasterarrangement will not exist unless approval has been obtained from thedivision. To receive a division-approved common paymaster arrangement, therelated corporation designated to be the common paymaster for the relatedcorporations must notify the division in writing at least thirty days priorto the beginning of the quarter in which the common paymaster reporting isto be effective. The common paymaster shall furnish the name and accountnumber of each corporation in the related group that will be utilizing theone corporation as the common paymaster. The common paymaster shall alsonotify the division at least thirty days prior to any change in the relatedgroup of corporations or termination of the common paymaster arrangement.The common paymaster shall be responsible for keeping books and records forthe payroll with respect to its own employees and the concurrently employedindividuals of the related corporations. In order for remuneration to beeligible for the provisions applicable to a common paymaster, theindividuals must be concurrently employed and the remuneration must bedisbursed through the common paymaster. The common paymaster shall havethe primary responsibility for remitting all required quarterlycontribution and wage reports, contributions due with respect to theremuneration it disburses as the common paymaster and/or payments in lieuof contributions. The common paymaster shall compute the contributions dueas though it were the sole employer of the concurrently employedindividuals. If the common paymaster fails to remit the quarterlycontribution and wage reports, contributions due and/or payments in lieu ofcontributions, in whole or in part, it shall remain liable for submittingthe quarterly contribution and wage reports and the full amount of theunpaid portion of the contributions due and/or payments in lieu ofcontributions. In addition, each of the related corporations using thecommon paymaster shall be jointly and severally liable for submittingquarterly contribution and wage reports, its share of the contributions dueand/or payments in lieu of contributions, penalties, interest andsurcharges which are not submitted and/or paid by the common paymaster.All contributions due, payments in lieu of contributions, penalties,interest and surcharges which are not timely paid to the division under acommon paymaster arrangement shall be subject to the collection provisionsof this chapter.

(2) For the purposes of this subsection, "concurrent employment"means the simultaneous existence of an employment relationship between anindividual and two or more related corporations for any calendar quarter inwhich employees are compensated through a common paymaster which is one ofthe related corporations, those corporations shall be considered oneemploying unit and be subject to the provisions of this chapter.

(3) For the purposes of this subsection, "related corporations" meansthat corporations shall be considered related corporations for an entirecalendar quarter if they satisfy any one of the following tests at any timeduring the calendar quarter:

(a) The corporations are members of a "controlled group ofcorporations". The term "controlled group of corporations" means:

a. Two or more corporations connected through stock ownership with acommon parent corporation, if the parent corporation owns stock possessingat least fifty percent of the total combined voting power of all classes ofstock entitled to vote or at least fifty percent of the total value ofshares of all classes of stock of each of the other corporations; or

b. Two or more corporations, if five or less persons who areindividuals, estates or trusts own stock possessing at least fifty percentof the total combined voting power of all classes of stock entitled to voteor at least fifty percent of the total value of shares of all classes ofstock of each of the other corporations; or

(b) In the case of corporations which do not issue stock, at leastfifty percent of the members of one corporation's board of directors aremembers of the board of directors of the other corporations; or

(c) At least fifty percent of one corporation's officers areconcurrently officers of the other corporations; or

(d) At least thirty percent of one corporation's employees areconcurrently employees of the other corporations.

(L. 1951 p. 564, A.L. 1965 p. 420, A.L. 1967 p. 396, A.L. 1972 S.B. 474, H.B. 1017, A.L. 1975 S.B. 275, A.L. 1977 H.B. 707, A.L. 1980 S.B. 583, A.L. 1984 H.B. 1251 & 1549, A.L. 1991 H.B. 422, et al., A.L. 1992 S.B. 626, A.L. 1993 H.B. 502, A.L. 1994 S.B. 559, A.L. 1995 H.B. 300 & 95, A.L. 1998 S.B. 922, A.L. 2004 H.B. 1268 & 1211)

Effective 1-01-05