Section 23:1536 - Determination of rate; ratio of reserves to payroll as a basisA. Repealed by Acts 2014, No. 349, 2.B. The administrator shall for the experience-rating year determine the contribution rate of each employer who has met the requirements specified in R.S. 23:1535 on the basis of his experience-rating record in accordance with the formula and rate tables which follow.C. Definitions. (1) "Fund balance on computation date" means the statement balance on computation date.(2) "Average benefit payout" means the annual average of the benefits charged to the contributing employer's accounts plus any benefits paid out based on the contributing employer's wages, but not charged to his account for the thirty-six months ending on the computation date.(3) "Current benefit payout" means the benefits charged to the contributing employer's accounts plus any benefits paid out based on the contributing employer's wages, but not charged to his account for the twelve-month period ending on the computation date.D. Rate Table. Each employer's rate of contribution is as set forth in the rate table below and shall be computed as follows:
(1) The employer's reserve is the total contributions paid on or before July thirty-first immediately succeeding the computation date with respect to wages paid by the employer on or before the computation date, reduced by benefits which were chargeable to the employer's experience-rating record and were paid on or before July thirty-first with respect to weeks of unemployment ending on or before the computation date. Such reserve as computed shall be reflected as a positive or negative balance.(2) For the purpose of this computation, the reserve ratio is the percentage derived by dividing the employer's reserve by the employer's average annual payroll as defined in R.S. 23:1542(2). Such reserve ratio shall be reflected as a positive or negative percentage.(3) The rate table is as follows: Employer's Reserve Ratio |
NEGATIVE RESERVE RATIO | RATE |
999.99 or more | 6.00 |
500 but less than 999.99 | 3.11 |
300 but less than 500 | 3.08 |
200 but less than 300 | 3.05 |
100 but less than 200 | 3.02 |
30 but less than 100 | 2.99 |
28.0 but less than 30.0 | 2.96 |
26.0 but less than 28.0 | 2.93 |
24.0 but less than 26.0 | 2.91 |
22.0 but less than 24.0 | 2.89 |
20.0 but less than 22.0 | 2.86 |
15.0 but less than 20.0 | 2.84 |
14.0 but less than 15.0 | 2.38 |
13.0 but less than 14.0 | 2.37 |
12.0 but less than 13.0 | 2.36 |
11.0 but less than 12.0 | 2.35 |
10.0 but less than 11.0 | 2.34 |
9.0 but less than 10.0 | 2.14 |
8.0 but less than 9.0 | 2.12 |
7.0 but less than 8.0 | 2.11 |
6.0 but less than 7.0 | 2.09 |
5.0 but less than 6.0 | 2.08 |
4.0 but less than 5.0 | 2.04 |
3.0 but less than 4.0 | 2.00 |
2.0 but less than 3.0 | 1.94 |
1.0 but less than 2.0 | 1.90 |
0.0 but less than 1.0 | 1.89 |
POSITIVE RESERVE RATIO |
less than 0.4 | 1.85 |
0.4 but less than 0.8 | 1.84 |
0.8 but less than 1.2 | 1.84 |
1.2 but less than 1.6 | 1.83 |
1.6 but less than 2.0 | 1.82 |
2.0 but less than 2.4 | 1.81 |
2.4 but less than 2.8 | 1.80 |
2.8 but less than 3.2 | 1.78 |
3.2 but less than 3.6 | 1.77 |
3.6 but less than 4.0 | 1.76 |
4.0 but less than 4.4 | 1.75 |
4.4 but less than 4.8 | 1.74 |
4.8 but less than 5.0 | 1.73 |
5.0 but less than 5.2 | 1.71 |
5.2 but less than 5.4 | 1.70 |
5.4 but less than 5.6 | 1.64 |
5.6 but less than 5.8 | 1.56 |
5.8 but less than 6.0 | 1.38 |
6.0 but less than 6.2 | 1.26 |
6.2 but less than 6.4 | 1.20 |
6.4 but less than 6.6 | 1.09 |
6.6 but less than 6.8 | 1.03 |
6.8 but less than 7.0 | 1.00 |
7.0 but less than 7.2 | 0.88 |
7.2 but less than 7.4 | 0.79 |
7.4 but less than 7.6 | 0.73 |
7.6 but less than 7.8 | 0.70 |
7.8 but less than 8.0 | 0.59 |
8.0 but less than 8.2 | 0.50 |
8.2 but less than 8.4 | 0.44 |
8.4 but less than 8.6 | 0.35 |
8.6 but less than 8.8 | 0.29 |
8.8 but less than 9.0 | 0.23 |
9.0 but less than 9.2 | 0.21 |
9.2 but less than 9.5 | 0.15 |
9.5 or more | 0.09 |
NOTE: Paragraph (E)(1) suspended through the 60th day after final adjournment of the 2022 R.S. by S.C.R. No. 5 of the 2021 R.S., relative to the unemployment insurance solvency tax on employers.
E.(1) If the administrator reports, in any calendar quarter, that the fund balance projected by the administrator for the next four calendar quarters, together with projected contributions to be collected plus amounts otherwise pledged thereto, less the amount of benefits projected by the administrator to be paid from the fund during the next four calendar quarters, will result in a fund balance of less than one hundred million dollars, there shall be added to the contributions, for the calendar quarter beginning six months after the end of the calendar quarter in which the projection is made, required of each employer by the rate table above a solvency tax arrived at as follows: The administrator shall determine a ratio, expressed as a fraction, the numerator of which is the amount by which the projected fund balance during the next four calendar quarters is less than one hundred million dollars and the denominator of which is the amount of the projected employer contributions for the calendar quarter beginning six months after the end of the calendar quarter in which the projection is made and this ratio shall be applied as a percentage to each employer's contributions for the calendar quarter beginning six months after the end of the calendar quarter in which the projection is made as a solvency tax, provided that the aggregate of this added solvency tax for any quarter shall not exceed a total of thirty percent of the employer's contributions for that quarter. Prior to adding the solvency tax to the contributions as required in this Paragraph, the administrator shall notify the House and Senate committees on labor and industrial relations, the House Committee on Ways and Means, and the Senate Committee on Revenue and Fiscal Affairs of the status of the fund and of his intention to add the solvency tax. The administrator's report shall also contain recommendations of alternative actions which may be taken either administratively or legislatively to protect the solvency of the fund. Also prior to adding the solvency tax to the contributions as required in this Paragraph, the administrator shall conduct within such calendar quarter in which the projection is made a public hearing for informational purposes only after public notice thereof. The notice of such hearing shall be published once in the official journal of the state at least fifteen days prior to such hearing date.(2) If, at the computation date in any year, the fund balance, including all monies in the benefit transfer account, exceeds four hundred million dollars, a ten percent reduction in contributions due under the rate table as provided in Subsection D of this Section shall be granted to each employer with a positive reserve ratio.(3) If, at the computation date in any year, the fund balance, including all monies in the benefit transfer account, exceeds one billion four hundred million dollars, a ten percent reduction in contributions due under the rate table provided in Subsection D of this Section shall be granted to each employer with a positive reserve ratio.F.(1) If the unemployment compensation fund is utilizing moneys advanced by the federal government under the provisions of 42 U.S.C.A. 1321, the interest due on such federal advances as computed herein shall be recouped in accordance with the provisions of this Section. The rate for recoupment of any amounts due on any bonds, notes, certificates, or other evidences of indebtedness referred to in R.S. 23:1536(F)(3) shall be equal to the lesser of the amount of surtax levied for recoupment of interest due on federal advances in the year in which such bonds, notes, certificates, or other evidences of indebtedness referred to in R.S. 23:1536(F)(3) were issued or an amount equal to twice the maximum future annual debt service due on any outstanding bonds. This rate shall be assessed as a surtax on the taxable payroll of those years in which such bonds, notes, obligations, or other evidences of indebtedness are outstanding in the same manner in which the surtax was assessed in the year in which said bonds, notes, obligations, or other evidences of indebtedness were issued. In addition, the rate for recoupment of interest, to the extent not provided for by the issuance of such bonds, notes, obligations, or other evidences of indebtedness referred to in R.S. 23:1536(F)(3), shall be determined by dividing the interest due by ninety-five percent of the taxable payroll of the preceding calendar year in which the interest is due and this rate shall be assessed as a surtax on the taxable payroll of that year. The obligation to maintain the surtax for the recoupment of amounts due on any bonds, notes, certificates, or other evidences of indebtedness at the level described herein shall not exceed fifteen years for any particular series of bonds, notes, certificates, or other evidences of indebtedness.(2) Interest due pursuant to this Subsection in excess of twelve million dollars shall be paid from the special employment security administration fund up to a maximum of thirty-five percent of the balance in the special employment security administration fund as of June first. Each employer will be notified of the contribution due under this Subsection by June thirtieth of each year, and the contribution shall be considered delinquent thirty days thereafter.(3)(a) The proceeds derived from the surtax provided in this Subsection shall be placed in a special account in the Employment Security Administration Fund and shall be pledged and utilized in the following order of priority: (i) For the repayment of bonds, notes, certificates, or other evidences of indebtedness issued upon approval of the State Bond Commission for the purpose of amortizing or stabilizing the payment of interest on federal advances as shall be set forth by written contract between the administrator and the issuer of such bonds, notes, certificates, or other evidences of indebtedness.(ii) For the payment of interest on federal advances.(b) Interest derived from this special account shall be used solely for the payment of interest on federal advances. At such time as the federal advances are repaid and no further interest payment to the federal government is due, and there are no more bonds, notes, certificates, or other evidences of indebtedness referred to above outstanding, any remaining balance in this special account shall be paid into the unemployment trust fund. The administrator may establish additional special accounts and subaccounts within the Employment Security Administration Fund for the purpose of identifying more precisely the sources of payments into and disbursements from the Employment Security Administration Fund.(c) The provisions of R.S. 9:2347(J) shall not apply to the contract between the administrator and the issuer of any bonds, notes, certificates, or other evidences of indebtedness as provided for in this Subsection.G. The amounts collected pursuant to Subsection E of this Section and R.S. 23:1532.1(B) shall not be credited to the employer's experience rating account.H. Repealed by Acts 1987, 1st Ex. Sess., No. 1, 2, eff. Sept. 17, 1987.I. Repealed by Acts 1997, No. 1053, 2, eff. Jan. 1, 1998.J. Repealed by Acts 2014, No. 349, 2.Amended by Acts 2021, No. 316,s. 1, eff. 8/1/2021.Amended by Acts 2014, No. 349,ss .1, .2eff. 8/1/2014.Amended by Acts 1988, No. 174, §1; Acts 1988, No. 192, §3, eff. 7/3/1988; Acts 1988, No. 618, §1, eff. 7/14/1988; Acts 1997, No. 1053, §§1, 2, eff. 1/1/1998; Acts 1999, No. 197, §1, eff. 1/1/2000; Acts 2005, No. 239, §1, eff. 1/1/2006; Acts 2008, No. 169, §1, eff. 6/12/2008.