Section 52-04-18 - Financing benefits paid to employees of nonprofit organizationsBenefits paid to employees of nonprofit organizations must be financed in accordance with the provisions of this section. For the purpose of this section, a nonprofit organization is an organization, or group of organizations, described in section 501(c)(3) of the United States Internal Revenue Code which is exempt from income tax under section 501(a) of such code.
1. Liability for contributions and election of reimbursement. Any nonprofit organization which, pursuant to subdivision i of subsection 15 of section 52-01-01, is, or becomes, subject to the North Dakota unemployment compensation law on or after January 1, 1972, shall pay contributions under the provisions of this chapter, unless it elects, in accordance with this subsection, to pay to the bureau 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 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 the North Dakota unemployment compensation law on January 1, 1972, 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, 1972, provided it files with the bureau a written notice of its election within the thirty-day period immediately following such date or within a like period immediately following the date of enactment of this subdivision, whichever occurs later.b. Any nonprofit organization which becomes subject to the North Dakota unemployment compensation law after January 1, 1972, may elect to become liable for payments in lieu of contributions for a period of not less than twelve months beginning with the date on which such subjectivity begins by filing a written notice of its election with the bureau not later than thirty days immediately following the date of the determination of such subjectivity.c. Any nonprofit organization which makes an election in accordance with subdivision a or subdivision b will continue to be liable for payments in lieu of contributions until it files with the bureau a written notice terminating its election not later than thirty days prior to the beginning of the taxable year for which such termination shall first be effective, and it shall thereafter be treated as a new or newly covered employer for the purpose of rate computation.d. Any nonprofit organization which has been paying contributions under the North Dakota unemployment compensation law for a period subsequent to January 1, 1972, may change to a reimbursable basis by filing with the bureau not later than thirty days prior to the beginning of any taxable year a written notice of election to become liable for payments in lieu of contributions. Such election is not terminable by the organization for that and the next year.e. The bureau 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 after December 31, 1969.f. The bureau, in accordance with such regulations as it may prescribe, shall notify each nonprofit organization of any determination which it 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 are subject to reconsideration, appeal, and review in accordance with administrative regulations of the bureau established for appeals from determinations on claims for benefits and thereafter the decision of the bureau is subject to judicial review as provided for in chapter 52-06.2. Reimbursement payments. Payments in lieu of contributions must be made in accordance with the provisions of this subsection including either subdivision a or b. a. At the end of each calendar quarter, or at the end of any other period as determined by the bureau, the bureau 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 to service in the employ of such organization.b. An alternative method for reimbursement payments may be as follows:(1) Each nonprofit organization that has elected payments in lieu of contributions may request permission to make such payments as hereinafter provided. Such method of payment becomes effective upon approval by the bureau.(2) At the end of each calendar quarter, the bureau shall bill each nonprofit organization for an amount representing one of the following:(a) For 1972, two-tenths of one percent of its total payroll for 1971.(b) For years after 1972, such percentage of its total payroll for the immediately preceding calendar year as the bureau shall determine. Such determination must be based each year on the average benefit costs attributable to service in the employ of nonprofit organizations during the preceding calendar year.(c) For any organization which did not pay wages throughout the four calendar quarters of the preceding calendar year, such percentage of its payroll during such year as the bureau shall determine.(3) At the end of each taxable year, the bureau may modify the quarterly percentage of payroll thereafter payable by the nonprofit organization in order to minimize excess or insufficient payments.(4) At the end of each taxable year, the bureau 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 is liable for payment of the unpaid balance to the fund in accordance with subdivision c. If the total payments exceed the amount so determined for the taxable year, all or a part of the excess may, at the discretion of the bureau, be refunded from the fund or retained in the fund as part of the payments which may be required for the next taxable year.c. Payment of any bill rendered under subdivision a or b must be made not later than thirty 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 in accordance with subdivision 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 bureau is conclusive on the organization unless, not later than fifteen days after the bill was mailed to the last-known address or otherwise delivered to it, the organization files an appeal with the bureau setting forth the grounds for such appeal. Proceedings on appeal to the bureau from the amount of a bill rendered under this subsection must be in accordance with administrative regulations of the bureau and thereafter the decision of the bureau is subject to judicial review as provided for in chapter 52-06.f. Past-due payments of amounts in lieu of contributions are subject to the same interest, delinquency fee, and penalties that, pursuant to this chapter apply to past-due contributions.3. Authority to terminate elections. If any nonprofit organization is delinquent in making payments in lieu of contributions as required under subsection 2, the bureau may terminate such organization's election to make payments in lieu of contributions as of the beginning of the next taxable year, and such termination is effective for that and the next taxable year.4. Allocation of benefit costs. Each employer that is liable for payments in lieu of contributions shall pay to the bureau for the fund the amount of regular benefits plus the amount of one-half of extended benefits paid that are attributable 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 fund by each employer that is liable for such payments must be determined in accordance with the provisions of subdivision a or b. a. Proportionate allocation, when fewer than all base-period employers are liable for reimbursement. 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 must 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 the individual's base-period employers.b. Proportionate allocation, when all base-period employers are liable for reimbursement. 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 must 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 the individual's base-period employers.5. Notwithstanding any provisions in this section, any nonprofit organization that prior to January 1, 1969, paid contributions required by this chapter, and elects, within thirty days after July 1, 1971, to make payments in lieu of contributions, may not be required to make any such payment on account of any regular or extended benefits paid, on the basis of wages paid by such organization to individuals for weeks of unemployment which begin on or after the effective date of such election until the total amount of such benefits equals the amount of the positive balance in the experience rating account of such organization.