§ 96-11. Period, election, and termination of employer's coverage. - North Carolina Statutes

§96‑11.  Period, election, and termination of employer's coverage.

(a)        Any employing unitwhich is or becomes an employer subject to this Chapter within any calendaryear shall be subject to this Chapter during the whole of such calendar yearexcept as otherwise provided in G.S. 96‑8(5)b; provided, however, that onand after July 1, 1939, this section shall not be construed to apply to anypart of the business of an employer as may come within the terms of section one(a) of the Federal Railroad Unemployment Insurance Act.

(b)        Prior to January 1,1972, and except as otherwise provided in subsections (a), (c), and (d) of thissection, an employing unit shall cease to be an employer subject to thisChapter only as of the first day of January of any calendar year, if it fileswith the Commission prior to the first day of March of such calendar year awritten application for termination of coverage and the Commission finds thatthere were no 20 different weeks in the preceding calendar year (whether or notsuch weeks are or were consecutive) within which said employing unit employedfour or more individuals in employment (not necessarily simultaneously andirrespective of whether the same individuals were employed in each such week);provided that on and after January 1, 1972, except as otherwise provided insubsections (a), (c), and (d) of this section, an employing unit shall cease tobe an employer subject to this Chapter only as of the first day of January inany calendar year, if it files with the Commission prior to the first day ofMarch of such year a written application for termination of coverage and theCommission finds that there were no 20 different weeks within the precedingcalendar year (whether or not such weeks are or were consecutive) within whichsaid employing unit employed one or more individuals in employment (notnecessarily simultaneously and irrespective of whether the same individual wasemployed in each such week), and the Commission finds that there was nocalendar quarter within the preceding calendar year in which the total wages ofits employees were one thousand five hundred dollars ($1,500) or more.  Anyemploying unit, as defined in G.S. 96‑8(5)n, shall cease to be anemployer only if it files with the Commission by the first day of March of anycalendar year an application for termination of coverage, and the Commissionfinds that there were no 20 different weeks within the preceding calendar yearin which such employing unit had at least 10 individuals in employment, andthat there was no calendar quarter within the preceding calendar year in whichsuch employing unit paid twenty thousand dollars ($20,000) or more in wages forservices in employment.  Any employing unit, as defined in G.S. 96‑8(5)o,shall cease to be an employer if it files with the Commission by the first dayof March of any calendar year an application for termination of coverage andthe Commission finds that there was no calendar quarter within the precedingcalendar year in which such employing unit paid one thousand dollars ($1,000)or more in wages for services in employment.  Provided further, except asotherwise provided in subsections (a), (c), and (d) of this section on andafter January 1, 1974, an "employer" as the term is used in G.S. 96‑8(5)kshall cease to be an employer subject to this Chapter only as of the first dayof January in any calendar year, if it files with the Commission prior to thefirst day of March of such year a written application for termination ofcoverage and the Commission finds that there were no 20 different weeks withinthe preceding calendar year (whether or not such weeks are or were consecutive)within which said employing unit employed four or more individuals inemployment (not necessarily simultaneously and irrespective of whether the sameindividuals were employed in each such week).  For the purpose of thissubsection, the two or more employing units mentioned in paragraphs b or c ofG.S. 96‑8, subdivision (5) shall be treated as a single employing unit:Provided, however, that any employer, as the term is used in G.S. 96‑8(5)k,whose liability covers a period of more than two years when first discovered bythe Commission, upon filing a written application for termination within 90days after notification of his liability by the Commission, may be terminatedas an employer effective January 1; and for any subsequent year if theCommission finds there were no 20 different weeks within the preceding calendaryear (whether or not such weeks are or were consecutive) within which saidemploying unit employed four or more individuals in employment (not necessarilysimultaneously and irrespective of whether the same individuals were employedin each such week).  Provided further, any other employer whose liabilitycovers a period of more than two years when first discovered by the Commission,upon filing a written application for termination within 90 days afternotification of his liability by the Commission may be terminated as anemployer effective January 1, and for any subsequent years if the Commissionfinds that prior to January 1, 1972, there were no 20 different weeks withinthe preceding calendar year (whether or not such weeks are or were consecutive)within which said employing unit employed four or more individuals in employment(not necessarily simultaneously and irrespective of whether the sameindividuals were employed in each such week); and with respect to 1972 andsubsequent years, if the Commission finds that there were no 20 different weekswithin the preceding calendar year (whether or not such weeks are or wereconsecutive) within which said employing unit employed one or more individualsin employment (not necessarily simultaneously and irrespective of whether thesame individual was employed in each such week), and the Commission finds thatthere was no calendar quarter within the preceding calendar year in which thetotal wages of its employees were one thousand five hundred dollars ($1,500) ormore.  In such cases, a protest of liability shall be considered as anapplication for termination within the meaning of this provision where thedecision with respect to such protest has not become final; provided further,this provision shall not apply in any case of willful attempt in any manner todefeat or evade the payment of contributions becoming due under this Chapter.

(c)        (1)        Anemploying unit, not otherwise subject to this Chapter, which files with theCommission its written election to become an employer subject hereto for notless than two calendar years shall, with the written approval of such electionby the Commission, become an employer subject hereto to the same extent as allother employers, as of the date stated in such approval, and shall cease to besubject hereto as of January 1 of any calendar year subsequent to such twocalendar years only if, prior to the first day of March following such firstday of January, it has filed with the Commission a written notice to thateffect, provided such employing unit may be terminated by the Commission asprovided under the provisions of subdivision (3) [(4)] of this subsection.

(2)        Any employing unitfor which services that do not constitute employment as defined in this Chapterare performed may file with the Commission a written election that all suchservices performed by individuals in its employ, in one or more distinctestablishments or places of business, shall be deemed to constitute employmentfor all the purposes of this Chapter for not less than two calendar years. Upon the written approval of such election by the Commission such servicesshall be deemed to constitute employment subject to this Chapter from and afterthe date stated in such approval.  Such services shall cease to be deemedemployment, subject hereto as of January one of any calendar year subsequent tosuch two calendar years only if, prior to the first day of March following suchfirst day of January, such employing unit has filed with the Commission awritten notice to that effect, provided such employing unit may be terminatedby the Commission as provided under the provisions of subdivision (3) [(4)] ofthis subsection.

(3)        a.         Onand after January 1, 1972, through December 31, 1977, any political subdivisionof this State may elect, for a period of not less than two calendar years, tocover under this Chapter service performed by employees in all of the hospitalsand institutions of higher education, as defined in G.S. 96‑8(5)l,operated by such political subdivisions.  Any election is to be made by filingwith the Commission a notice of such election at least 30 days prior to January1, the effective date of such election.  Any political subdivision electingcoverage under this subsection shall make payments in lieu of contributionswith respect to benefits attributable to such employment as provided withrespect to nonprofit organizations in G.S. 96‑9(d).

b.         The provisions inG.S. 96‑13(4) with respect to benefit rights based on service for Stateand nonprofit institutions of higher education shall be applicable also toservice covered by an election under this section.

c.         The amounts requiredto be paid in lieu of contributions by any political subdivision under thissection shall be as provided in G.S. 96‑9(d), with respect to similarpayments by nonprofit organizations.

d.         An election underthis section may be terminated as of January 1 of any calendar year subsequentto such two calendar years only if 30 days prior to such January 1, suchemployer has filed with the Commission a written notice to that effect.

(4)        On and after July 1,1965, the Commission on its own motion and in its discretion, upon 30 days'written notice mailed to the last known address of such employer, may terminatecoverage of any employer which has become subject to this Chapter solely byelecting coverage under the provisions of this subsection.

(d)        Except as providedin G.S. 96‑9(c)(6), an employer who has not paid any covered wages for aperiod of two consecutive calendar years shall cease to be an employer subjectto this Chapter.  An employer who has not had individuals in employment and whohas made due application for exemption from filing contributions and wagereports required under this Chapter and has been so exempted may be terminatedfrom liability upon written application within 120 days after notification ofthe reactivation of his account.  Such termination shall be effective January 1of any calendar year only if the Commission finds there were no 20 differentweeks within the preceding calendar year, whether or not such weeks are or wereconsecutive, within which said employer employed one or more individuals inemployment (four or more prior to January 1, 1972), not necessarilysimultaneously and irrespective of whether the same individuals were employedin each such week, and the Commission finds that there was no calendar quarterwithin the preceding calendar year in which the total wages of its employeeswere one thousand five hundred dollars ($1,500) or more, except as otherwiseprovided.  Provided further, an employer, as the term is used in G.S. 96‑8(5)k,who has not had individuals in employment and who has made due application forexemption from filing contributions and wage reports required under thisChapter and has been so exempted may be terminated from liability upon writtenapplication within 120 days after notification of the reactivation of itsaccount.  Such termination shall be effective January 1 of any calendar yearonly if the Commission finds that there were no 20 different weeks within thepreceding calendar year, whether or not such weeks are or were consecutive,within which said employer employed four or more individuals in employment, notnecessarily simultaneously and irrespective of whether the same individualswere employed in each such week.  In such cases a protest of liability shall beconsidered as an application for termination within the meaning of thisprovision where the decision with respect to such protest has not become final.(Ex. Sess. 1936, c. 1, s. 8; 1939, c. 52, ss. 2, 3; 1941, c. 108, s. 9;1945, c. 522, ss. 21‑23; 1949, c. 424, ss. 17, 18; c. 522; 1951, c. 332,s. 9; c. 1147; 1953, c. 401, s. 16; 1955, c. 385, s. 10; 1959, c. 362, ss. 10,11; 1961, c. 454, s. 16; 1965, c. 795, ss. 12‑14; 1971, c. 673, ss. 22‑24;1973, c. 172, s. 5; 1977, c. 727, s. 51; 1979, c. 660, s. 17; 1985, c. 552, s.8; 1991, c. 421, s. 2.)