UNEMPLOYMENT TAX RATE.
Each employer, unless otherwise prescribed in Section 3-111.1, 3-701 or 3-801 of this title, shall pay unemployment tax as follows:
1. All employers shall have an assigned tax rate of one and one-half percent (1.5%) until sufficient experience history exists in the employer's account to meet the At-Risk Rule set out in paragraph 3 of this section. If the account meets the At-Risk Rule, the employer will qualify for an earned tax rate calculated pursuant to the provisions of Part 1 of Article III of the Employment Security Act of 1980;
2. If an employer qualified for an earned tax rate under paragraph 1 of this section, or under a prior law, and at the time the employer's tax rate is being determined for a subsequent year the employer account lacks sufficient experience history to meet the At-Risk Rule of paragraph 3 of this section, the employer shall revert to the assigned tax rate of one and one-half percent (1.5%). The employer shall pay at the assigned tax rate until the provisions of paragraph 1 of this section are met; and
3. "At-Risk Rule" means an employer is required to be at-risk for a claim of unemployment benefits before an earned tax rate is calculated. An employer shall meet the At-Risk Rule and be eligible for an earned tax rate if, throughout the calendar year immediately preceding the year for which the employer's tax rate is being determined, there was an individual who could have filed a claim for unemployment benefits in each quarter of that year establishing a base period, as defined by Section 1-202 of this title, which would include wages from that employer.
Added by Laws 2015, c. 249, § 14, eff. Nov. 1, 2015. Amended by Laws 2016, c. 287, § 9, eff. Nov. 1, 2016.