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11-10-705. Future rates — Computation of contribution rates.
Arkansas Code — all titles (historical 2020) · legal_authorities
11-10-705. Future rates — Computation of contribution rates.
(a)(1) Each employer's contribution rate beginning January 1 for each twelve-month period shall be determined on the basis of the employer's record through June 30 of the previous calendar year.
(2) The record of an employer shall include, for the purpose of computing an employer's contribution rate, any payment, except a payment that represents a stabilization tax payment or a payment that represents an extended benefit tax payment, made by the employer on or before July 31 on wages paid by the employer on or before June 30 of the calendar year.
(b)(1)(A) The contribution rate of an employer who has had three (3) or more years of benefit risk as defined at § 11-10-707 shall be that shown on the corresponding line that reflects the employer's reserve ratio in the contribution rate schedule which follows.
(B) The reserve ratio in the following schedule is determined by dividing the difference in contributions paid and regular benefits charged by the annual taxable payroll:
CONTRIBUTION RESERVE RATIO RATE 0.1% 9.95% or more 0.3% 9.35% but less than 9.95% 0.5% 8.85% but less than 9.35% 0.8% 8.65% but less than 8.85% 1.2% 8.35% but less than 8.65% 1.6% 7.95% but less than 8.35% 2.0% 7.35% but less than 7.95% 2.4% 6.75% but less than 7.35% 2.8% 5.45% but less than 6.75% 3.2% 2.45% but less than 5.45% 4.0% 1.35% but less than 2.45% 5.0% Less than 1.35% with a positive reserve balance 6.0% Less than 0.00%
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(2)(A) Notwithstanding any other provision of this chapter, for any calendar year beginning on and after January 1, 2008, an employer that has been assigned a contribution rate of six percent (6%) under this chapter and that has had such a r
Source: Arkansas Code — historical release 78 (November 6, 2020) · 11-10-705
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
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Stable record: arkansas_code:legal_authorities:11-10-705
Source file: gov.ar.code.title.11.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 097bdba544e10b26123e3640735a8a10431a53759b4dc7854e03dc8866a497f4
Source location: content.xml paragraph 13361
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11-10-705. Future rates — Computation of contribution rates.
(a)(1) Each employer's contribution rate beginning January 1 for each twelve-month period shall be determined on the basis of the employer's record through June 30 of the previous calendar year.
(2) The record of an employer shall include, for the purpose of computing an employer's contribution rate, any payment, except a payment that represents a stabilization tax payment or a payment that represents an extended benefit tax payment, made by the employer on or before July 31 on wages paid by the employer on or before June 30 of the calendar year.
(b)(1)(A) The contribution rate of an employer who has had three (3) or more years of benefit risk as defined at § 11-10-707 shall be that shown on the corresponding line that reflects the employer's reserve ratio in the contribution rate schedule which follows.
(B) The reserve ratio in the following schedule is determined by dividing the difference in contributions paid and regular benefits charged by the annual taxable payroll:
CONTRIBUTION RESERVE RATIO RATE 0.1% 9.95% or more 0.3% 9.35% but less than 9.95% 0.5% 8.85% but less than 9.35% 0.8% 8.65% but less than 8.85% 1.2% 8.35% but less than 8.65% 1.6% 7.95% but less than 8.35% 2.0% 7.35% but less than 7.95% 2.4% 6.75% but less than 7.35% 2.8% 5.45% but less than 6.75% 3.2% 2.45% but less than 5.45% 4.0% 1.35% but less than 2.45% 5.0% Less than 1.35% with a positive reserve balance 6.0% Less than 0.00%
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(2)(A) Notwithstanding any other provision of this chapter, for any calendar year beginning on and after January 1, 2008, an employer that has been assigned a contribution rate of six percent (6%) under this chapter and that has had such a rate for the two (2) preceding calendar years will be assigned an additional contribution assessment of two percent (2%).
(B) After two (2) consecutive years of being assessed an additional contribution of two percent (2%) under subdivision (b)(2)(A) of this section, this additional contribution assessment shall increase to four percent (4%).
(C) For calendar years beginning January 1, 2014, and thereafter, after two (2) consecutive years of being assessed an additional contribution of four percent (4%) under subdivision (b)(2)(B) of this section, the additional contribution assessment shall increase to six percent (6%).
(D) For calendar years beginning January 1, 2014, and thereafter, after two (2) consecutive years of being assessed an additional contribution of six percent (6%) under subdivision (b)(2)(C) of this section, the additional contribution assessment shall increase to eight percent (8%).
(c)(1)(A) Notwithstanding any other provisions of this chapter and unless prohibited by § 11-10-723(c)(1), an employer that has been assigned a contribution rate pursuant to this chapter may make a voluntary payment to the Unemployment Compensation Trust Fund Account, in addition to the contributions required pursuant to this chapter, to be credited to the employer's account.
(B) The Director of the Division of Workforce Services shall provide to each eligible employer an annual notice of voluntary payment amounts that may be submitted to reduce the employer's contribution rate.
(2)(A)(i) Voluntary payments to the fund account under subdivision (c)(1) of this section shall be made no later than March 31 of the calendar year for which the new contribution rate is effective.
(ii) Upon receipt of a timely voluntary payment, the director shall compute a new contribution rate for the employer and provide notice to the employer of the new contribution rate.
(B) Any adjustments made under §§ 11-10-703 — 11-10-708 shall be used only in the form of credit against accrued or future contributions.
(C) No refund shall ever be made to any employer of any voluntary payment so made.
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Arkansas Code — all titles (historical 2020) · legal_authorities
11-10-703. Future rates — Maintenance of separate accounts.
(a)(1)(A) The Director of the Division of Workforce Services shall maintain a separate account for each employer and shall credit the employer's account with all the contributions paid on the employer's own behalf except as otherwise provided in §§ 11-10-701 — 11-10-715.
(B) However, nothing in this chapter shall be construed to grant any employer or individuals in the employer's service prior claims or rights to the amounts paid by the employer into the fund either on the employer's behalf or on behalf of such individuals.
(2)(A)(i) Regular benefits paid to an eligible individual based on an initial claim shall be charged to the separate account of each employer in the base period in the proportion to which wages paid by each employer to the individual during the base period bears to total wages paid by all such employers to such individual within the base period.
(ii)(a) However, regular benefits paid to an eligible individual after the individual has established a benefit year against a base-period employer under qualifying conditions and whose employment continued with the employer but who subsequently left the employment under conditions that would have been a noncharge under subdivisions (a)(3) and (4) of this section shall be charged through the date on which the subsequent separation occurred to the separate account of the base-period employer.
(b) Benefits paid from the established benefit year to an individual after the date on which the subsequent separation occurred shall not be charged to the separate account of the base-period employer.
(B) Nothing in §§ 11-10-701 — 11-10-715 shall be construed to limit regular benefits payable pursuant to §§ 11-10-501 — 11-10-506 and 11-10-609 — 11-10
Source: Arkansas Code — historical release 78 (November 6, 2020) · 11-10-703
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 11-10-703. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
11-10-707. Future rates — Definitions — Notifications.
(a)(1) As used in §§ 11-10-701 — 11-10-715:
(A) The term “annual payroll” means the total amount of taxable wages paid during a calendar year by an employer for employment and for the employer who has had three (3) or more years of benefit risk experience; and
(B) The term “average annual payroll” means the average of the annual payrolls for the last three (3) or the five (5) preceding calendar years, whichever is the lesser.
(2)(A) However, with respect to rate years beginning January 1, 1972, and thereafter, an employer who has been subject to three (3) or more years of benefit risk may voluntarily elect to be rated each year on the basis of total taxable wages paid during the preceding calendar year instead of the average of the annual payrolls for the last three (3) or last five (5) preceding calendar years, whichever is the lesser.
(B) A voluntary election by an employer shall be made at the time and in the manner prescribed by rules of the Director of the Division of Workforce Services.
(C) Any voluntary election so made shall be irrevocable, except with respect to an employer who acquires the experience of the electing employer under the provision of § 11-10-710.
(b) The director shall for each rate year:
(1)(A)(i) Periodically notify each employer of the regular benefits paid that are chargeable to the employer's account.
(ii) The notification shall become conclusive and binding upon the employer unless within thirty (30) days after mailing of the notice the employer files an application for review and redetermination as provided in subdivision (c)(1) of this section.
(B)(i) With the exception of charges that might be changed under § 11-10-703(a)(2)(A)(ii), an application for review and r
Source: Arkansas Code — historical release 78 (November 6, 2020) · 11-10-707
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 11-10-707. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
11-10-708. Future rates — Advance interest tax.
(a)(1)(A) In addition to the contributions and any stabilization and extended benefits taxes levied under other provisions of §§ 11-10-703 — 11-10-708, each employer, except employers that have made an election to reimburse the Unemployment Compensation Fund under § 11-10-713(c), shall pay a separate and additional tax, to be known as the advance interest tax, on wages paid by that employer with respect to employment.
(B) For rate years beginning on and after January 1, 1993, the advance interest tax shall be two-tenths of one percent (0.2%) when the state has an outstanding interest-bearing advance under Title XII of the Social Security Act.
(C) The tax is effective the first month of the quarter following the state's obtaining an interest-bearing advance and shall remain until the quarter immediately following the repayment of the advancement and the Employment Security Advance Interest Trust Fund, § 19-5-935, attains a balance of five million dollars ($5,000,000).
(2) For purposes of this section, the definition of the assets of the trust fund shall be the same as that set forth in § 11-10-706, and the computation date is defined as September 30 of the calendar year preceding the tax year.
(3) This advance interest tax shall not be credited to the separate account of any employer. It shall be levied and collected in the same manner as contributions and shall be subject to the same penalty and interest, collection, impoundment, priority, lien, certificate of assessment, and assessment provisions and procedures set forth in §§ 11-10-716 — 11-10-722.
(b)(1) Receipts from this advance interest tax and any penalty and interest collected on overdue advance interest taxes shall be deposited into the Unemployment Co
Source: Arkansas Code — historical release 78 (November 6, 2020) · 11-10-708
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 11-10-708. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
11-10-723. Special rules regarding transfers of experience and assignment of rates — Definitions.
(a) Notwithstanding any other provision of law, the following shall apply regarding assignment of rates and transfers of experience:
(1) If an employer transfers its trade or business, or a portion thereof, to another employer and, at the time of the transfer, there is any common ownership, management, or control of the two (2) employers, then the unemployment experience attributable to the transferred trade or business, or portion thereof, shall be combined with the employer to whom the business is transferred. The combining of experience and recalculation of applicable employer tax rates shall be made effective the first day of the calendar quarter following the date of transfer of the trade or business, or portion thereof. The transfer of some or all of an employer's workforce to another employer shall be considered a transfer of trade or business, or portion thereof; and
(2) If following a transfer of experience under subdivision (a)(1) of this section or transfer of experience as otherwise provided in this chapter involving only a portion of a trade or business, the Director of the Division of Workforce Services determines that a substantial purpose of the transfer was to obtain a reduced liability for contributions, then the experience rating accounts of the employers involved shall be combined into a single account and a single rate assigned to such an account effective the first day of the calendar quarter following the date of transfer.
(b) Whenever a person is not an employer under this chapter at the time it acquires the trade or business of an employer, the unemployment experience of the acquired business shall not be transferred to that person if the di
Source: Arkansas Code — historical release 78 (November 6, 2020) · 11-10-723
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 11-10-723. This identifies an authority to review, not proof of applicability.