(a) Contributions with respect to wages for employment shall accrue and become payable by each employer for each calendar year in which he is subject to this chapter. Such contributions shall become due and be paid by each employer to the Commissioner of Finance for the Unemployment Fund not less frequently than quarterly, in accordance with such regulations as the Commissioner of Labor may prescribe, and shall not be deducted, in whole or in part, from the wages of individuals in employment for such employer.
Rates of contribution
(b)
(1) Except as otherwise provided in this subsection, each employer shall pay contributions equal to five and four-tenths percent (5.4%) of wages paid by him during the calendar year with respect to employment, subject to the limit on wages set forth in subsection (c) of this section. Each employer, shall pay an amount of $25 per employee, per year to pay the accrued interest on the Virgin Islands Federal Trust Fund Loan.
(2) Each employer newly subject to the provisions of this chapter shall pay contributions at the rate of two percent (2%) until such time as he has sufficient experience to qualify for a contribution rate in accordance with paragraph (3) of this subsection.
(3) In lieu of the five and four-tenths percent (5.4%) contribution rate set forth in paragraph (1) of this subsection, each employer whose account has been chargeable with benefits for each of the four completed calendar quarters ending September 30 of any year shall pay contributions at a rate determined by the employer's reserve ratio. An employer's reserve ratio shall be computed by subtracting the total amount of benefits charged to his account as of the period (not to exceed the 12 calendar quarters) ending such September 30 from the amount of contributions paid for the same period and dividing the result by the total amount of wages paid (without reference to the limitation in subsection (c) of this section), as reported by such employer for the same period. This computation shall be made no later than December 31 of the year immediately preceding the calendar year for which it shall apply and shall be performed in accordance with regulations prescribed by the Commissioner of Labor.
(4) Before December 31 of each year, the fund solvency contribution rate applicable for the following calendar year shall be determined on the basis of the relationship between the most recent current reserve fund and the most recent adequate reserve fund. The fund solvency contribution rate for a calendar year shall be that rate which appears on the same line as the ratio (rounded to the nearest hundredth) of the current reserve fund for the adequate reserve fund in the fund solvency contribution rate schedule set forth in this paragraph.
FUND SOLVENCY CONTRIBUTION RATE SCHEDULE
| Ratio of Current Reserve Fund to Adequate Reserve Fund | Fund Solvency Contribution Rate |
|---|---|
| 2.00 or more | -.5 percent |
| 1.50 to 1.99 | -.2 percent |
| 1.00 to 1.49 | 0 |
| .90 to .99 | +.4 percent |
| .80 to .89 | +.8 percent |
| .60 to .79 | +1.2 percent |
| .40 to .59 | +1.6 percent |
| .20 to .39 | +2.0 percent |
| Less than .20 | +2.4 percent |
(5) Benefits paid shall be charged to each base period employer in an amount which bears the same ratio to total benefits paid to an individual as the total base period wages paid to the individual by each such base period employer bears to the total base period wages paid to the individual by all such base period employers.
(6) The total amount of contributions to be paid by all employers, for any calendar year, shall be an amount which shall be determined as follows:
(A) Multiply total estimated wages for insured work for such calendar year by one hundred fifty (150) percent of the benefit cost ratio for the year in which such ratio was the highest during the first five of the last six (6) calendar years immediately preceding such calendar year; Provided, That in calculating the total amount of contributions to be paid by all employers for calendar years 1985 and 1986, the percentages of the benefit cost ratio shall be 117 percent and 134 percent respectively, in lieu of 150 percent. The benefit cost ratio shall be the total amount of benefits paid for such a year divided by the total wages paid for the same year.
(B) To the product of subparagraph (A) above, add the amount of the total estimated wages for the calendar year times benefits paid from the Unemployment Fund for the first five (5) of the last six (6) calendar years immediately preceding the calendar year divided by total wages paid for insured work for the same period.
(C) From the sum of subparagraph (B) above subtract the total cash balance in the Unemployment Fund on September 30 of the year immediately preceding the calendar year.
(D) From the difference of subparagraph (C) above subtract all contributions due as of the computation date according to Government records.
(7) From the total amount of contributions to be paid by all employers for the calendar year there shall be deducted the estimated total amount of contributions to be paid by each employer not entitled to have his contribution determined by reference to a reserve ratio. The difference shall be divided by the total amount of estimated wages for insured work to be paid for such period attributable to all reserve ratio employers. Each employer's initial contribution rate shall then be determined by subtracting his reserve ratio from the resulting quotient. The initial contribution rate shall then be divided by the ratio of total wages for insured work for all employers, subject to contributions, over total wages for insured work. The resulting quotient, multiplied by 100 and rounded to the nearest one-tenth of one percent (0.1%), shall be the employer's assigned contribution rate for the calendar year.
(8) The Commissioner shall announce the appropriate tax schedule which meets the requirements of the preceding paragraphs in accordance with regulations which he shall prescribe. No employer's contribution rate under such schedule shall be less than one and one half percent (1-½%) nor more than six percent (6%). Each employer shall be notified of his individual rate of contribution for the calendar year according to such regulations as the Commissioner shall prescribe.
(9) Such rates shall be final unless within fifteen (15) days after the notice was mailed to the employer's last known address, or delivered to him, the employer files an application for review and redetermination setting forth the reasons therefor. The Commissioner of Labor shall thereupon redetermine the contribution rate and notify the employer of the result and the reasons therefor. A redetermination shall be final unless within 30 days after the notice was mailed to the employer's last known address, or delivered to him, a petition for review is filed in the District Court of the Virgin Islands.
(c) For the purposes of subsection (a) and paragraphs (1), (2), (3), and (4) of subsection (b) of this section, wages shall not include that part of remuneration paid to an individual in a calendar year by an employer or his predecessor with respect to employment in insured work during any calendar year which is in excess of 60% of the average annual wage in insured work in such employment, rounded to the nearest one hundred dollars ($100); Provided, That, such amount shall not be less than the remuneration subject to a tax under a Federal Law imposing a tax against which credit may be taken for contributions required to be paid into a State Unemployment Fund. The average annual wage in insured work shall be determined by multiplying the average weekly wage in insured work, as determined in section 303(c) of this title, by fifty-two. This computation may be made no later than December 31 of each year and shall be effective for the following calendar year.
Financing benefits paid to employees of the Virgin Islands
(d)
(1) In lieu of contributions required of employers under this chapter, the Government of the Virgin Islands shall pay into the Unemployment Fund an amount equal to the full amount of regular benefits and 50 percent of the extended benefits paid based on service in its employ; Provided that for weeks of unemployment beginning on and after January 1, 1979, the Government of the Virgin Islands shall pay into the Unemployment Fund 100 percent of the amount of all benefits paid based on service in its employ. If benefits paid to an individual are based on service in the employ of both the Government of the Virgin Islands and one or more other employers, the amount payable by the Government of the Virgin Islands to the Unemployment Fund shall be calculated as provided in section 308(e)(4) of this title.
(2) The amount of the payments required under this subsection from the Government of the Virgin Islands or from any entity thereof shall be determined by the Commissioner of Labor quarterly. Such amounts shall be paid into the Unemployment Fund by the Government of the Virgin Islands or by any liable entity thereof at such times and in such manner as the Commissioner may prescribe. The Government of the Virgin Islands and any liable entity thereof shall be individually liable for making the required payments to the Unemployment Fund.
(3) Governmental entities which are separate and distinct instrumentalities of the Government of the Virgin Islands shall have the option of financing benefit costs either by contributions under the provisions of subsection (a) of this section or by payments in lieu of contributions as provided for nonprofit organizations in subsection (e) of this section. Each such instrumentality electing payments in lieu of contributions shall for all weeks of unemployment pay an amount equal to the full amount of regular and extended benefits attributable to service in its employ. The amount of the payments in lieu of contributions shall be calculated as provided in section 308(e)(4). The provisions in section 308(e)(3) of this title with respect to bonds or deposits shall not apply.
[Benefits paid to nonprofit organizations]
(e) Benefits paid to employees of nonprofit organizations shall be financed in accordance with the provisions of this subsection. For the purpose of this subsection, a nonprofit organization is an organization (or group of organizations) described in section 501(c)(3) of the Federal Internal Revenue Code which is exempt from income tax under section 501(a) of such Code.
(1) Any nonprofit organization which, pursuant to section 302(k)(1)(C) of this title is, or becomes, subject to this chapter on or after January 1, 1978 shall pay contributions under the provisions of subsection (a), unless it elects, in accordance with this paragraph, to pay to the Commissioner of Finance for the Unemployment Fund an amount equal to the amount of regular benefits and of one-half of the extended benefits paid, that is attributable under this chapter to service in the employ of such nonprofit organization, to individuals for weeks of unemployment which begin during the effective period of such election.
(A) Any nonprofit organization which is, or becomes, subject to this chapter on January 1, 1978, may elect to become liable for payments in lieu of contributions for a period of not less than one taxable year beginning with January 1, 1978, provided it files with the Commissioner of Labor a written notice of its election within the 30-day period immediately following such date or within a like period immediately following the date of enactment of this paragraph, whichever occurs later.
(B) Any nonprofit organization which becomes subject to this chapter after January 1, 1978, may elect to become liable for payments in lieu of contributions for a period of not less than 12 months beginning with the date on which such subjectivity begins by filing a written notice of its election with the Commissioner of Labor not later than 30 days immediately following the date of the determination of such subjectivity.
(C) Any nonprofit organization which makes an election in accordance with subparagraph (A) or subparagraph (B) of this paragraph will continue to be liable for payments in lieu of contributions until it files with the Commissioner of Labor a written notice terminating its election not later than 30 days prior to the beginning of the taxable year for which such termination shall first be effective.
(D) Any nonprofit organization which has been paying contributions under this chapter for a period subsequent to January 1, 1978, may elect to become liable for payments in lieu of contributions by filing with the Commissioner of Labor not later than 30 days prior to the beginning of any taxable year a written notice of election to become liable for payment in lieu of contributions. Such election shall not be terminable by the organization for that and the next taxable year.
(E) The Commissioner of Labor may for good cause extend the period within which a notice of election, or a notice of termination, must be filed and may permit an election to be retroactive but not any earlier than with respect to benefits paid for weeks of unemployment beginning on or after January 1 of the year in which the election is made.
(F) The Commissioner of Labor shall notify each nonprofit organization of any determination which he may make of its status as an employer and of the effective date of any election which it makes and of any termination of such election. Such determinations shall be subject to reconsideration, appeal and review in accordance with the provisions of section 307 of this title.
(2)
(A) At the end of each calendar quarter, or at the end of any shorter period as determined by the Commissioner of Labor, the Commissioner of Labor shall bill each nonprofit organization (or group of such organizations) which has elected to make payments in lieu of contributions for an amount equal to the full amount of regular benefits plus one-half of the amount of extended benefits paid during such quarter or other prescribed period that is attributable under this chapter to service in the employ of such organization.
(B)
(i) Each nonprofit organization that has elected payments in lieu of contributions may request permission to make such payments as provided in this subparagraph. Such method of payment shall become effective upon approval by the Commissioner of Labor.
(ii) At the end of each calendar quarter, or at the end of such other period as determined by the Commissioner of Labor, the Commissioner of Labor shall bill each nonprofit organization for an amount representing one of the following:
(I) For 1978, .675 percent of its total payroll for 1977 which was taxable under this chapter.
(II) For years after 1978, such percentage of its total taxable payroll for the immediately preceding calendar year as reflects the average benefit costs chargeable to such organization for such year.
(III) For each succeeding taxable year, the Commissioner of Labor shall modify the quarterly percentage of payroll payable by the nonprofit organization in order to minimize excess or insufficient payments.
(iii) At the end of each taxable year, the Commissioner of Labor shall determine whether the total of payments for such year made by a nonprofit organization is less than, or in excess of, the total amount of regular benefits plus one-half of the amount of extended benefits paid to individuals during such taxable year based on wages attributable to service in the employ of such organization. Each nonprofit organization whose total payments for such year are less than the amount so determined shall be liable for payment of the unpaid balance to the Unemployment Fund in accordance with subparagraph (C). If the total payments exceed the amount so determined for the taxable year, the excess shall be credited against the payments which may be required for the next taxable year.
(C) Payment of any bill rendered under subparagraph (A) or subparagraph (B) shall be made not later than 30 days after such bill was mailed to the last known address of the nonprofit organization or was otherwise delivered to it, unless there has been an application for review and redetermination in accordance with subparagraph (E).
(D) Payments made by any nonprofit organization under the provisions of this subsection shall not be deducted or deductible, in whole or in part, from the remuneration of individuals in the employ of the organization.
(E) The amount due specified in any bill from the Commissioner of Labor shall be conclusive on the organization unless, not later than 15 days after the bill was mailed to its last known address or otherwise delivered to it, the organization files an application for redetermination by the Commissioner of Labor or an appeal to a hearing examiner, setting forth the grounds for such application or appeal. The Commissioner of Labor shall promptly review and reconsider the amount due specified in the bill and shall thereafter issue a redetermination in any case in which such application for redetermination has been filed. Any such redetermination shall be conclusive on the organization unless, not later than 15 days after the determination was mailed to its last known address or otherwise delivered to it, the organization files an appeal to a hearing examiner, setting forth the grounds for the appeal. Proceedings on appeal to the hearing examiner from the amount of a bill rendered under this subsection or a redetermination of such amount shall be in accordance with the provisions of section 309(f) of this title, and the decision of the hearing examiner shall be subject to the provisions of section 309(g) of this title.
(F) Past due payments of amounts in lieu of contributions shall be subject to the same interest and penalties that, pursuant to section 309, apply to past due contributions.
(3) In accordance with regulations of the Commissioner of Labor, any nonprofit organization that elects to become liable for payments in lieu of contributions shall be required within 30 days after the effective date of its election, to execute and file with the Commissioner of Finance a surety bond approved by the Commissioner of Labor, or it may elect instead to deposit with the Commissioner money or securities. The amount of such bond or deposit shall be determined in accordance with the provisions of this paragraph.
(A) The amount of the bond or deposit required by this paragraph shall be equal to 1.35 percent of the organization's taxable wages as defined in section 308(c) of this title for the four calendar quarters immediately preceding the effective date of the election, the renewal date in the case of a bond, or the biennial anniversary of the effective date of election in the case of a deposit of money or securities, whichever date shall be most recent and applicable.
(B) Any bond deposited under this paragraph shall be in force for a period of not less than two taxable years and shall be renewed with the approval of the Commissioner of Labor at such times as the Commissioner of Labor may by regulation prescribe, but not less frequently than at two year intervals as long as the organization continues to be liable for payments in lieu of contributions. If the bond is to be increased, the adjusted bond shall be filed by the organization within 30 days of the date notice of the required adjustment was mailed or otherwise delivered to it. Failure by any organization covered by such bond to pay the full amount of payments in lieu of contributions when due, together with any applicable interest and penalties provided for in paragraph (2)(F) of this subsection, shall render the surety liable on said bond to the extent of the bond, as though the surety was such organization.
(C) Any deposit of money or securities in accordance with this paragraph shall be retained by the Commissioner in an escrow account until liability under the election is terminated, at which time it shall be returned to the organization, less any deductions as hereinafter provided. The Commissioner of Labor may deduct from the money deposited under this paragraph by a nonprofit organization or sell the securities it has so deposited to the extent necessary to satisfy any due and unpaid payments in lieu of contributions and any applicable interest and penalties provided for in paragraph (2)(F) of this subsection. The Commissioner of Labor shall require the organization within 30 days following any deduction from a money deposit or sale of deposited securities under the provisions of this subparagraph to deposit sufficient additional money or securities to make whole the organization's deposit at the prior level. Any cash remaining from the sale of such securities shall be a part of the organization's escrow account. If a deposit is to be adjusted, the additional deposit shall be made within 30 days of the date notice of the adjustment was mailed or otherwise delivered to the organization, or the Commissioner of Finance shall return to the organization such portion of the deposit as the Commissioner of Labor no longer considers necessary, whichever action is appropriate. Disposition of income from securities held in escrow shall be governed by the applicable law of the Virgin Islands.
(D) If any nonprofit organization fails to file a bond or make a deposit, or to file a bond in an increased amount or to increase or make whole the amount of a previously made deposit, as provided under this paragraph, the Commissioner of Labor may terminate such organization's election to make payments in lieu of contributions and such termination shall continue for not less than the four consecutive calendar quarter period beginning with the quarter in which such termination becomes effective; Provided, That the Commissioner of Labor may extend for good cause the applicable filing, deposit or adjustment period by not more than 30 days.
(4) Each employer that is liable for payments in lieu of contributions shall pay to the Unemployment Fund the amount of regular benefits plus the amount of one-half of extended benefits paid that are attributable under this chapter to service in the employ of such employer. If benefits paid to an individual are based on wages paid by more than one employer and one or more of such employers are liable for payments in lieu of contributions, the amount payable to the Unemployment Fund by each employer that is liable for such payments shall be determined in accordance with the provisions of subparagraph (A) or subparagraph (B).
(A) If benefits paid to an individual are based on wages paid by one or more employers that are liable for payments in lieu of contributions and on wages paid by one or more employers who are liable for contributions, the amount of benefits payable by each employer that is liable for payments in lieu of contributions shall be an amount which bears the same ratio to the total benefits paid to the individual as the total base-period wages paid to the individual by such employer bear to the total base-period wages paid to the individual by all of his base-period employers.
(B) If benefits paid to an individual are based on wages paid by two or more employers that are liable for payments in lieu of contributions, the amount of benefits payable by each such employer shall be an amount which bears the same ratio to the total benefits paid to the individual paid to the individual by such employer bear to the total base period wages paid to the individual by all of his base period employers.
(5) Two or more employers that have become liable for payments in lieu of contributions, in accordance with the provisions of subsection (e)(1), may file a joint application to the Commissioner of Labor for the establishment of a group account for the purpose of sharing the cost of benefits paid that are attributable to service in the employ of such employers. Each such application shall identify and authorize a group representative to act as the group's agent for the purpose of this paragraph. Upon his approval of the application, the Commissioner of Labor shall establish a group account for such employers effective as of the beginning of the calendar quarter in which he receives the application and shall notify the group's representative of the effective date of the account. Such account shall remain in effect for not less than two years and thereafter until terminated upon application by the group or terminated earlier for cause by the Commissioner of Labor. Upon establishment of the account, each member of the group shall be liable for payments in lieu of contributions with respect to each calendar quarter in the amount that bears the same ratio to the total benefits paid in such quarter that are attributable to service performed in the employ of all members of the group. The Commissioner of Labor shall prescribe regulations with respect to applications for establishment, maintenance and termination of group accounts that are authorized by this paragraph, for addition of new members to, and withdrawal of active members from, such accounts, and for the determination of the amounts that are payable under this paragraph by the group and members of the group and the time and manner of such payments.
(f) [Repealed.]
(g) [Repealed.]