No. 36093 (5-year Review): Rule R994-303. Contribution Rates

DAR File No.: 36093
Filed: 04/25/2012 01:03:37 PM

NOTICE OF REVIEW AND STATEMENT OF CONTINUATION

Concise explanation of the particular statutory provisions under which the rule is enacted and how these provisions authorize or require the rule:

Section 35A-1-104 authorizes the Department of Workforce Services to adopt rules. Subsection 35A-1-104(4) authorizes the Department to establish eligibility standards for its programs. Subsection 35A-4-502(1)(b) authorizes the Department to make rules necessary for the administration of the Employment Security Act. Section 35A-4-303 describes how an employer's contribution rate is determined including how to calculate social costs and reserves.

Summary of written comments received during and since the last five-year review of the rule from interested persons supporting or opposing the rule:

The Department has not received any comments during the last five years.

Reasoned justification for continuation of the rule, including reasons why the agency disagrees with comments in opposition to the rule, if any:

The rule is necessary to explain how contribution rates are assigned and calculated for each employer including how the division calculates experience ratings using the reserve factor and benefit ratio. The rule also describes when successorship is determined and how it effects the contribution rate to avoid "SUTA dumping" (a process or changing ownership to avoid a high experience rating in an effort to lower state unemployment taxes). SUTA dumping rules are a required agreement with our federal partners. Therefore, this rule should be continued.

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]

Authorized by:

Kristen Cox, Executive Director

Effective:

04/25/2012

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