No. 29686 (Repeal and Reenact): R994-302. Payment by Employer

DAR File No.: 29686
Filed: 03/15/2007, 03:43
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

This proposed repeal and reenactment is to ensure the rule accurately reflects current law and practice.

Summary of the rule or change:

These changes are being made as part of the Department's effort to rewrite all of its rules. This rule was changed to more accurately reflect current practice and state and federal law. Archaic language has been removed and additional explanations and clarifying language have been added throughout. Federal definitions have been added to assist the industry in determining coverage. There were so many, mostly minor changes that the underlining and strikeout method of amending the rule made it too difficult to read and understand. For that reason, the Department determined to repeal and reenact the rule. The current rule and this proposed new rule are essentially equivalent in substance.

State statutory or constitutional authorization for this rule:

Section 35A-1-104, and Subsections 35A-1-104(4) and 35A-4-502(1)(b)

Anticipated cost or savings to:

the state budget:

This is a federally-funded program so there are no costs or savings to the state budget.

local governments:

This is a federally-funded program so there are no costs or savings to local government.

other persons:

There are no costs or savings to any other persons as there are no fees associated with this program and it is federally funded.

Compliance costs for affected persons:

There are no costs or savings to any affected persons as there are no fees associated with this program and it is federally funded. These changes will not impact any employer's contribution rate.

Comments by the department head on the fiscal impact the rule may have on businesses:

There are no compliance costs associated with this change. There are no fees associated with this change. There will be no cost to anyone to comply with these changes. There will be no fiscal impact on any business. These changes will have no impact on any employer's contribution tax rate. Tani Downing, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Workforce Services
Unemployment Insurance
140 E 300 S
SALT LAKE CITY UT 84111-2333

Direct questions regarding this rule to:

Suzan Pixton at the above address, by phone at 801-526-9645, by FAX at 801-526-9211, or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

05/01/2007

This rule may become effective on:

05/09/2007

Authorized by:

Tani Downing, Executive Director

RULE TEXT

R994. Workforce Services, Unemployment Insurance.

[R994-302. Payment by Employer.

R994-302-101. General Definition.

An employer is responsible to advise the Department that he has entered into a business, to report wages paid and to make payments of contributions based on those wages and to comply with instructions on report forms issued by the Department. This rule establishes when contributions are due, how contributions are paid, and when contribution reports are due. Information regarding interest and penalties related to contribution reports are provided for in Section 35A-4-305. An employer is responsible to notify the Department of changes in the business which might affect filing reports or paying contributions.

 

R994-302-102. Due Dates for Contribution Payments.

(1) Contributions are payable quarterly. The payment is due on the last day of the month that follows the end of each calendar quarter; unless the Department, after giving written notice, changes the due date. Interest and penalties for late payments begin to accrue the day after the due date. Contribution payments postmarked on or before the due date are considered paid timely.

(a) The Department may establish a separate due date for the payment of contributions when:

(i) The employing unit can show a reasonable basis for contending that the status of the employing unit as an employer, the status of any service performed for the employer or the status of any contribution liability is doubtful. Appealing or disagreeing with the Department's decision regarding the employer's status or status of the liability does not in itself show the status is doubtful. Some examples of when a separate due date may be established by the Department are when an employer can show a reasonable basis for erroneously:

(A) reporting wages to another state;

(B) not reporting wages he considered to be exempt as agricultural labor; or

(C) not reporting wages for individuals he considered exempt from employment; or

(ii) An employer discontinues business by retirement therefrom, or by sale, merger, consolidation or reorganization involving the transfer of assets. The employer must give written notice to the Department when:

(A) the terms of the discontinuance are known or finalized; and

(B) again when the status change is accomplished unless both events occur at the same time; or

(iii) The possible collection of any contribution will be jeopardized by delaying the collection thereof until the regular due date.

(2) An extension of up to 90 days for making quarterly payments will be granted if the employer makes a written request within ten days after the date the written demand for payment is mailed by the Department. Further extensions may be granted if in the judgement of the Department an extension would preserve the possibility of collecting payments due. Interest will accrue on the outstanding balance from the original due date.

 

R994-302-103. Contribution Payments.

The contributions due will be based on wages paid during the quarter for subject employment, as defined by Subsection R994-401-205.

(1) All contributions or other payments should be made payable to the Utah Unemployment Compensation Fund.

(2) Contribution payments made by check or other order will constitute payment on the day received only if initially honored by the bank. In the event that the Department incurs necessary expense in the collection of any such check or other order for payment of money, the amount of such expense shall be paid by the person who tendered said check or order to the Department.

(3) After a check has been given in payment and has been returned by the depository bank unpaid, the Department reserves the right thereafter to accept from the employer only cash, certified cashier's check, or money order.

(4) Contributions, interest or penalty payments received without a report or billing will be applied to the oldest quarter in which an amount is due and will be applied first to the contributions, then to the interest and finally to the penalties due in that quarter. Payments will be applied in this manner unless, at the time the payment is made, the employer specifies otherwise; or at a later date by mutual agreement between the Department and the employer, the payment is applied differently. Payments accompanied by a contribution report or a billing will be applied to the quarters shown on that report or billing.

 

R994-302-104. Due Dates for Filing Contribution Reports.

(1) Contribution reports and any equivalent reports required of those employers liable for payments in lieu of contributions are due quarterly on the last day of the month that follows the end of each calendar quarter; unless the Department, after giving written notice, changes the due date. Reports postmarked on or before the due date are considered filed timely.

(a) Extension for Filing Reports.

The Department may, for good cause, grant an extension of time for filing a report if the employer makes a written request not later than the due date of the report.

 

R994-302-105. Other Responsibilities of the Employer.

(1) The executor or administrator of an employer's estate must give written notice of the employer's death to the Department as soon as practicable.

(2) An employer must immediately notify the Department of commencement of any receivership or similar proceeding, or of any assignment for the benefit of creditors, and of any court order with respect to the foregoing. An employer must immediately notify the Department of the filing of any voluntary or involuntary petition in bankruptcy or other proceeding under the Federal Bankruptcy Act.

(3) An employer, receiver, trustee, executor or administrator, or other person appointed under the laws of the State of Utah who is in control of the assets of an employer, must file timely with the Department all reports that are required.

 

R994-302-106. Adjustments and Refunds.

Adjustments or refunds for contributions overpaid will be made as provided by Subsection 35A-4-306(5). Adjustments for reports not filed or for reports and contributions filed incorrectly will be made as provided by Section 35A-4-305(2).]

R994-302. Employer Contribution Payments.

R994-302-101. Employer Responsibilities.

An employer must notify the Department that it has entered into a business, to report wages paid, to make payments of contributions based on those wages, and to comply with instructions on report forms issued by the Department. An employer must also notify the Department of changes in the business that might affect filing reports or paying contributions.

 

R994-302-102. Due Dates for Contribution Payments.

(1) Quarterly contribution payments are due from employers who are subject to the Utah Employment Security Act except as noted in subsections (2) and (3) of this section. The payment is due on the last day of the month that follows the end of each calendar quarter unless the Department, after giving written notice, changes the due date. Interest and penalties for late payments begin to accrue the day after the due date. Contribution payments postmarked on or before the due date are considered paid timely.

(2) Domestic employers defined in Subsection 35A-4-204(2)(k) may elect to pay contributions annually. The payment is due on January 31 of the year following the year wages were paid.

(3) Employers with seasonal employment may petition the Department to only pay contributions one, two, or three calendar quarters a year. The payment is due on the last day of the month that follows the end of the calendar quarter unless the Department, after giving written notice, changes the due date.

(4) The Department may establish a different due date for the payment of contributions when:

(a) The employing unit can show a reasonable basis for contending that the status of the employing unit as an employer, the status of any service performed for the employer, or the status of any contribution liability is doubtful. Appealing or disagreeing with the Department's decision regarding the employer's status or status of the liability does not in itself show the status is doubtful. Some examples of when a separate due date may be established by the Department are when an employer can show a reasonable basis for erroneously:

(i) reporting wages to another state;

(ii) not reporting wages it considered to be exempt as agricultural labor; or

(iii) not reporting wages for individuals it considered exempt from employment.

(b) The possible collection of any contribution will be jeopardized by delaying the collection thereof until the regular due date.

(5) An extension of up to 90 days for making quarterly payments may be granted if the employer makes a written request within ten days after the date the written demand for payment is mailed by the Department. Further extensions may be granted if in the judgment of the Department an extension would preserve the possibility of collecting payments due. Interest will accrue on the outstanding balance from the original due date.

 

R994-302-103. Contribution Payments.

The contributions due will be based on wages paid during the quarter for subject employment, as defined by Section R994-401-205.

(1) All contributions or other payments should be made payable in United States currency to the Utah Unemployment Compensation Fund or to a depository account specified by the Department or Utah State Treasurer.

(2) Contribution payments will be reflected on the Department records on the day received. Payments other than cash will constitute payment on the day received only if honored by the financial institution. In the event that the payment is not honored in full, the Department will remove the dishonored payment from the employer's account and may assess fees as provided for in Section 35A-4-305 and Utah Code Title 07, Chapter 15.

(3) If a non-cash payment instrument has been given in payment and has been returned by the depository institution unpaid, the Department reserves the right thereafter to accept from the employer only cash, certified cashier's check, or money order.

(4) Contributions, interest or penalty payments received without a report or billing will be applied first to any unpaid costs, then to the oldest quarter in which an amount is due and will be applied first to the contributions, then to the interest and finally to the penalties due in that quarter. Payments will be applied in this manner unless the employer or Department specifies otherwise. Payments accompanied by a contribution report or a billing will be applied to the quarters shown on that report or billing.

 

R994-302-104. Due Dates for Filing Contribution and Equivalent Reports.

(1) Contribution reports and any equivalent reports required of those employers liable for payments in lieu of contributions are due quarterly on the last day of the month that follows the end of each calendar quarter; unless the Department, after giving written notice, changes the due date. Reports postmarked on or before the due date are considered filed timely.

(a) Extension for Filing Reports.

The Department may, for good cause, grant an extension of time for filing a report if the employer makes a written request not later than the due date of the report.

 

R994-302-105. Other Responsibilities of the Employer.

(1) The executor or administrator of an employer's estate must give written notice of the employer's death to the Department as soon as practicable.

(2) An employer must immediately notify the Department of commencement of any receivership or similar proceeding, or of any assignment for the benefit of creditors, and of any court order with respect to the foregoing. An employer must immediately notify the Department of the filing of any voluntary or involuntary petition in bankruptcy or other proceeding under the Federal Bankruptcy Act.

(3) An employer, receiver, trustee, executor, administrator, or other person appointed under the laws of the State of Utah who is in control of the assets of an employer, must file timely with the Department all reports that are required.

 

R994-302-106. Adjustments and Refunds.

Adjustments or refunds for contributions overpaid will be made as provided by Subsection 35A-4-306(5). Adjustments for reports not filed or for reports and contributions filed incorrectly will be made as provided by Subsection 35A-4-305(2).

 

KEY: unemployment compensation, employer liability

Date of Enactment or Last Substantive Amendment: [1991]2007

Notice of Continuation: May 9, 2006

Authorizing, and Implemented or Interpreted Law: 35A-4-302