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11-10-706. Future rates — Stabilization tax.
Arkansas Code — all titles (historical 2020) · legal_authorities
11-10-706. Future rates — Stabilization tax.
(a)(1) Each employer shall be required to pay a stabilization tax on wages paid by the employer with respect to employment.
(2) This stabilization tax shall not be credited to the separate account of each employer.
(b) The stabilization tax shall be determined as follows:
(1) If the assets of the Unemployment Compensation Fund on the computation date are equal to or greater than two percent (2%) but less than two and one-half percent (2.5%) of total payrolls for employment during the preceding calendar year, the stabilization tax shall be one-tenth of one percent (0.1%);
(2) If the assets of the Unemployment Compensation Fund on the computation date are greater than one and one-half percent (1.5%) but less than two percent (2%) of total payrolls for employment during the preceding calendar year, the stabilization tax shall be two-tenths of one percent (0.2%);
(3) If the assets of the Unemployment Compensation Fund on the computation date are greater than one percent (1%) but less than one and one-half percent (1.5%) of total payrolls for employment during the preceding calendar year, the stabilization tax shall be three-tenths of one percent (0.3%);
(4) If the assets of the Unemployment Compensation Fund on the computation date are greater than one-half of one percent (0.5%) but less than one percent (1%) of total payrolls for employment during the preceding calendar year, the stabilization tax shall be four-tenths of one percent (0.4%);
(5) If the assets of the Unemployment Compensation Fund on the computation date are less than one-half of one percent (0.5%) of total payrolls for employment during the preceding calendar year, the stabilization tax shall be seven-tenths of one percent (0.7%); and
(6) If the
Source: Arkansas Code — historical release 78 (November 6, 2020) · 11-10-706
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:11-10-706
Source file: gov.ar.code.title.11.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 7c7c2d242b2459a81d7235a64d7d3211d07d5ceaa2df5cc2fcf124f8571e12d2
Source location: content.xml paragraph 13398
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11-10-706. Future rates — Stabilization tax.
(a)(1) Each employer shall be required to pay a stabilization tax on wages paid by the employer with respect to employment.
(2) This stabilization tax shall not be credited to the separate account of each employer.
(b) The stabilization tax shall be determined as follows:
(1) If the assets of the Unemployment Compensation Fund on the computation date are equal to or greater than two percent (2%) but less than two and one-half percent (2.5%) of total payrolls for employment during the preceding calendar year, the stabilization tax shall be one-tenth of one percent (0.1%);
(2) If the assets of the Unemployment Compensation Fund on the computation date are greater than one and one-half percent (1.5%) but less than two percent (2%) of total payrolls for employment during the preceding calendar year, the stabilization tax shall be two-tenths of one percent (0.2%);
(3) If the assets of the Unemployment Compensation Fund on the computation date are greater than one percent (1%) but less than one and one-half percent (1.5%) of total payrolls for employment during the preceding calendar year, the stabilization tax shall be three-tenths of one percent (0.3%);
(4) If the assets of the Unemployment Compensation Fund on the computation date are greater than one-half of one percent (0.5%) but less than one percent (1%) of total payrolls for employment during the preceding calendar year, the stabilization tax shall be four-tenths of one percent (0.4%);
(5) If the assets of the Unemployment Compensation Fund on the computation date are less than one-half of one percent (0.5%) of total payrolls for employment during the preceding calendar year, the stabilization tax shall be seven-tenths of one percent (0.7%); and
(6) If the assets of the Unemployment Compensation Fund on the computation date are less than four-tenths of one percent (0.4%) of total payrolls for employment during the preceding calendar year, the stabilization tax shall be one and one-tenth percent (1.1%) for the calendar year 1993, nine-tenths of one percent (0.9%) for the calendar year 1994, and eight-tenths of one percent (0.8%) for the calendar year 1995 and thereafter.
(c) Each employer eligible for an experience rating under § 11-10-705 shall have the employer's contribution rate reduced by one-tenth of one percent (0.1%) for any rate year when the assets of the Unemployment Compensation Fund on the computation date are greater than five percent (5%) of total payrolls for employment during the preceding calendar year.
(d) Employers who have elected to reimburse the Unemployment Compensation Fund in lieu of contributions under § 11-10-404 or § 11-10-713 shall be excluded from the provisions of §§ 11-10-703 — 11-10-708 or any experience rate computation.
(e)(1) The provisions of this section shall not be effective for any rate year when the assets of the Unemployment Compensation Fund, excluding contributions not yet paid, on the computation date equal or exceed two and one-half percent (2.5%) but are less than five percent (5%) of total payrolls for employment during the preceding calendar year.
(2) For the purposes of §§ 11-10-703 — 11-10-708, total payrolls shall exclude payrolls of employers who have elected to reimburse the Unemployment Compensation Fund in lieu of contributions under § 11-10-404 or § 11-10-713.
(3)(A) For the purposes of §§ 11-10-703 — 11-10-708, the assets of the Unemployment Compensation Fund as of the computation date shall include only contributions which were paid on or before June 30, the computation date.
(B) Provided, however, for the purposes of this section, the computation date is defined as September 30 of the calendar year preceding the tax year.
(C) It shall include any accounts receivable from the United States for its share of extended benefit payments which have been paid from the Unemployment Compensation Fund and any accounts receivable from employers who have elected to reimburse the Unemployment Compensation Fund for benefits paid under § 11-10-404 or § 11-10-713.
(D) However, it shall exclude the assets of the Unemployment Compensation Fund Extended Benefits Account and shall be reduced by any outstanding advances owed to the United States Government.
(f)(1)(A) However, the proceeds of the stabilization tax in the amount of two and one-half hundredths of one percent (0.025%) of taxable wages collected during the period July 1, 2007, through June 30, 2023, shall be deposited and credited to the Division of Workforce Services Training Trust Fund, there to be used for worker training.
(B) The total amount deposited into the Division of Workforce Services Training Trust Fund in any one (1) fiscal year shall not exceed two million five hundred thousand dollars ($2,500,000).
(2)(A) However, the proceeds of the stabilization tax in the amount of two and one-half hundredths of one percent (0.025%) of taxable wages collected during the period July 1, 2007, through June 30, 2023, shall be deposited and credited to the Division of Workforce Services Unemployment Insurance Administration Fund, there to be used for personal services and operating expenses of the unemployment insurance program necessary for the proper administration of the Division of Workforce Services Law, § 11-10-101 et seq., as determined by the Director of the Division of Workforce Services.
(B)(i) The total amount deposited into the Division of Workforce Services Unemployment Insurance Administration Fund in any one (1) fiscal year shall not exceed two million five hundred thousand dollars ($2,500,000).
(ii) If the amount deposited into the Division of Workforce Services Unemployment Insurance Administration Fund under subdivision (f)(2)(B)(i) of this section is not sufficient to meet the administrative needs under the Division of Workforce Services Law, § 11-10-101 et seq., the Division of Workforce Services may deposit up to an additional three million five hundred thousand dollars ($3,500,000) in any one (1) fiscal year to the Division of Workforce Services Unemployment Insurance Administration Fund upon approval by the Chief Fiscal Officer of the State.
(3) The director shall report to the Legislative Council on a quarterly basis as to any and all uses of the Division of Workforce Services Training Trust Fund and the Division of Workforce Services Unemployment Insurance Administration Fund.
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Arkansas Code — all titles (historical 2020) · legal_authorities
11-10-404. Nonprofit employers.
(a)(1)(A) Any political subdivision of this state may elect to cover under this chapter service performed by employees in all of the hospitals and institutions of higher education, as defined in §§ 11-10-220 and 11-10-221, operated by the political subdivision.
(B) Election is to be made by filing with the Director of the Division of Workforce Services a notice of the election at least thirty (30) days prior to the effective date of the election.
(2) The election shall exclude any services described in § 11-10-210(a)(4).
(3) Any political subdivision electing coverage under this section shall make payments in lieu of contributions with respect to benefits attributable to the employment as provided with respect to nonprofit organizations in § 11-10-713(c) and (f).
(b) The provisions in § 11-10-509 with respect to benefit rights based on service for state and nonprofit institutions of higher education shall be applicable also to service covered by an election under this section.
(c) The amounts required to be paid in lieu of contributions by any political subdivision under this section shall be billed and payment made as provided in § 11-10-713(d) with respect to similar payments of nonprofit organizations.
(d) An election under this section may be terminated by filing with the director written notice not later than thirty (30) days preceding the last day of the calendar year in which the termination is to be effective. The termination becomes effective as of the first day of the next ensuing calendar year with respect to services performed after that date.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 11-10-404
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 11-10-404. This identifies an authority to review, not proof of applicability.
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
11-10-705. 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. The source passage cites 11-10-705. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
11-10-713. Employees of nonprofit organizations and governmental entities — Definitions.
(a) Benefits paid to individuals based on wages paid by any nonprofit organization or government employing unit shall be financed in accordance with this section.
(b) As used in this section and § 11-10-714:
(1) A “government employing unit” is one for which service in employment as defined in § 11-10-210(a)(2) is performed;
(2) A “nonprofit organization” is an organization for which service in employment as defined in § 11-10-210(a)(3) is performed and which is exempt from income tax under section 501(a) of the Internal Revenue Code of 1954; and
(3) “Wages” are not limited by any amount specified in § 11-10-215.
(c)(1) Any nonprofit organization or government employing unit which, pursuant to § 11-10-210(a)(2) or (a)(3), is subject to this chapter shall pay contributions under § 11-10-701 unless it elects, in accordance with this subsection, to pay to the Director of the Division of Workforce Services for the Unemployment Compensation Fund an amount equal to the amount of regular benefits and, to the extent that the fund is not reimbursed for the extended benefits in accordance with section 204 of the Federal-State Extended Unemployment Compensation Act of 1970, the extended benefits paid, based on wages paid by the employer to individuals for weeks of unemployment that begin during the effective period of the election.
(2) Any nonprofit organization or government employing unit that is or becomes subject to this chapter may elect to become liable for payments in lieu of contributions for a period of not less than one (1) calendar year, provided that it files with the director a written notice of its election within the thirty-day period immediately following the date
Source: Arkansas Code — historical release 78 (November 6, 2020) · 11-10-713
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 11-10-713. This identifies an authority to review, not proof of applicability.