GENERAL ASSEMBLY OF NORTH CAROLINA

1995 SESSION

 

 

CHAPTER 4

SENATE BILL 13

 

AN ACT TO FURTHER REDUCE EMPLOYERS' UNEMPLOYMENT INSURANCE TAXES.

 

The General Assembly of North Carolina enacts:

 

Section 1.  G.S. 96-9(a)(5) reads as rewritten:

"(5)      An employer is not required to pay contributions on wages the employer pays to an individual in a calendar year in excess of the taxable wage base for that calendar year.  The taxable wage base is the greater of (i) the federally required taxable wage base or (ii) the product resulting from multiplying the average yearly insured wage by fifty percent (50%), rounded to the nearest multiple of one hundred dollars ($100.00).  The average yearly insured wage is the average weekly insured wage on the applicable computation date multiplied by 52.  Prior to January 1, 1978, the term 'wages' shall not include for the purposes of this section any remuneration in excess of four thousand two hundred dollars ($4,200) paid to any individual in a single calendar year by an employer with respect to employment.  The following wages are included in determining whether the amount of wages paid to an individual in a single calendar year exceeds the taxable wage base:

a.         For purposes of this section, the term 'wages' shall not include any remuneration paid to any employee in this State in excess of this State's tax base Wages paid to an individual in this State by a single an employer if the employer of that individual that made contributions in another state or states upon the wages paid to such the individual during the applicable calendar year, because of the work was performed in another state or states. the other state.

b.         Wages paid by a Any successor employer as defined in G.S. 96-8(5)b for the purposes of this section shall pay no contributions on that part of remuneration earned by any to an individual in the employ of the successor employer which, when added to the remuneration previously paid by the predecessor employer exceeded this State's tax base in a single calendar year, provided that meets both of the following conditions:  (i) the individual was an employee of the predecessor and was taken over as an employee by the successor as a part of the organization acquired and, provided further, that and (ii) the predecessor employer has paid contributions on the wages paid to such the individual while in his the predecessor's employ during the year of acquisition and the account of the predecessor is transferred to the successor in accordance with G.S. 96-9(c)(4)a.

Beginning January 1, 1978, and thereafter, the taxable wage base of any employee whose wages are subject to taxation, whether totally or partially, by the State of North Carolina under any provision of this Chapter shall be the federally required tax base.

On the computation date (August 1) in 1983 and each computation date thereafter, the Commission shall compute the average yearly insured wage by multiplying the average weekly insured wage (obtained in accordance with G.S. 96-8(22)) by 52.  During the calendar year following the computation date, the taxable wage base shall be the greater of the federally required tax base or the product resulting from multiplying the average yearly insured wage by sixty percent (60%), rounded to the nearest multiple of one hundred dollars ($100.00)."

Sec. 2.  G.S. 96-9(b)(3) is amended by adding a new subdivision d3. to read:

d3.     The standard contribution rate set by subdivision (b)(1) of this section applies to an employer unless the employer's account has a credit balance.  Beginning January 1, 1995, the contribution rate of an employer whose account has a credit balance is determined in accordance with the rate set in the following Experience Rating Formula table for the applicable rate schedule.  The contribution rate of an employer whose contribution rate is determined by this Experience Rating Formula table shall be reduced by fifty percent (50%) for any year in which the balance in the Unemployment Insurance Fund equals or exceeds eight hundred million dollars ($800,000,000) on the computation date.

EXPERIENCE RATING FORMULA

When The Credit Ratio Is:

As        But

Much  Less                                              Rate Schedules (%)

As        Than          A           B           C           D           E            F            G             H              I

0.0%    0.2%    2.70%   2.70%   2.70%   2.70%   2.50%   2.30%   2.10%     1.90%        1.70%

0.2%    0.4%    2.70%   2.70%   2.70%   2.50%   2.30%   2.10%   1.90%     1.70%        1.50%

0.4%    0.6%    2.70%   2.70%   2.50%   2.30%   2.10%   1.90%   1.70%     1.50%        1.30%

0.6%    0.8%    2.70%   2.50%   2.30%   2.10%   1.90%   1.70%   1.50%     1.30%        1.10%

0.8%    1.0%    2.50%   2.30%   2.10%   1.90%   1.70%   1.50%   1.30%     1.10%        0.90%

1.0%    1.2%    2.30%   2.10%   1.90%   1.70%   1.50%   1.30%   1.10%     0.90%        0.80%

1.2%    1.4%    2.10%   1.90%   1.70%   1.50%   1.30%   1.10%   0.90%     0.80%        0.70%

1.4%    1.6%    1.90%   1.70%   1.50%   1.30%   1.10%   0.90%   0.80%     0.70%        0.60%

1.6%    1.8%    1.70%   1.50%   1.30%   1.10%   0.90%   0.80%   0.70%     0.60%        0.50%

1.8%    2.0%    1.50%   1.30%   1.10%   0.90%   0.80%   0.70%   0.60%     0.50%        0.40%

2.0%    2.2%    1.30%   1.10%   0.90%   0.80%   0.70%   0.60%   0.50%     0.40%        0.30%

2.2%    2.4%    1.10%   0.90%   0.80%   0.70%   0.60%   0.50%   0.40%     0.30%        0.20%

2.4%    2.6%    0.90%   0.80%   0.70%   0.60%   0.50%   0.40%   0.30%     0.20%        0.15%

2.6%    2.8%    0.80%   0.70%   0.60%   0.50%   0.40%   0.30%   0.20%     0.15%        0.10%

2.8%    3.0%    0.70%   0.60%   0.50%   0.40%   0.30%   0.20%   0.15%     0.10%        0.09%

3.0%    3.2%    0.60%   0.50%   0.40%   0.30%   0.20%   0.15%   0.10%     0.09%        0.08%

3.2%    3.4%    0.50%   0.40%   0.30%   0.20%   0.15%   0.10%   0.09%     0.08%        0.07%

3.4%    3.6%    0.40%   0.30%   0.20%   0.15%   0.10%   0.09%   0.08%     0.07%        0.06%

3.6%    3.8%    0.30%   0.20%   0.15%   0.10%   0.09%   0.08%   0.07%     0.06%        0.05%

3.8%    4.0%    0.20%   0.15%   0.10%   0.09%   0.08%   0.07%   0.06%     0.05%        0.04%

4.0%    4.2%    0.15%   0.10%   0.09%   0.08%   0.07%   0.06%   0.05%     0.04%        0.03%

4.2%    4.4%    0.10%   0.09%   0.08%   0.07%   0.06%   0.05%   0.04%     0.03%        0.02%

4.4%    4.6%    0.09%   0.08%   0.07%   0.06%   0.05%   0.04%   0.03%     0.02%        0.01%

4.6%    4.8%    0.08%   0.07%   0.06%   0.05%   0.04%   0.03%   0.02%     0.01%        0.01%

4.8%    5.0%    0.07%   0.06%   0.05%   0.04%   0.03%   0.02%   0.01%     0.01%        0.01%

5.0%   &OVER 0.00%  0.00%   0.00%   0.00%   0.00%   0.00%   0.00%     0.00%        0.00%"

Sec. 3.  Effective January 1, 1998, G.S. 96-9(b)(3)d2. is repealed.

Sec. 4.  Section 3 of this act becomes effective January 1, 1998.  The remainder of this act is effective upon ratification and applies to quarters beginning on or after January 1, 1995.

In the General Assembly read three times and ratified this the 27th day of February, 1995.

 

 

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Dennis A. Wicker

President of the Senate

 

 

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Harold J. Brubaker

Speaker of the House of Representatives