Maryland SB 827: Unemployment Insurance - Computation of Earned Rate of Contribution - Applicable Table of Rates

Bill Text

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0827*

SENATE BILL 827
K2 2lr1496

By: Senator Klausmeier
Introduced and read first time: February 7, 2022
Assigned to: Finance

A BILL ENTITLED

AN ACT concerning 1

Unemployment Insurance – Computation of Earned Rate of Contribution – 2
Applicable Table of Rates 3

FOR the purpose of requiring that the earned rate of contributions for a certain calendar 4
year be calculated using a certain table of unemployment insurance rates under 5
certain circumstances; and generally relating to the computation of the earned rate 6
of contribution of unemployment insurance. 7

BY repealing and reenacting, with amendments, 8
Article – Labor and Employment 9
Section 8–612 10
Annotated Code of Maryland 11
(2016 Replacement Volume and 2021 Supplement) 12

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
That the Laws of Maryland read as follows: 14

Article – Labor and Employment 15

8–612. 16

(a) (1) Subject to paragraph (2) of this subsection, on the basis of the earned 17
rating record of an employing unit that qualifies for an earned rate of contribution under § 18
8–610 of this subtitle, the Secretary shall compute to the 4th decimal place a benefit ratio 19
for the employing unit in accordance with subsection (b) or (c) of this section. 20

(2) The Secretary may not assign an earned rate of contribution that is less 21
than 0.3% or more than 13.5%. 22

(b) For an employing unit that qualifies under § 8–610(a)(2) of this subtitle, the 23
Secretary shall compute a benefit ratio by: 24

2 SENATE BILL 827

(1) adding the regular, work sharing, and extended benefits that were 1
chargeable to the earned rating record of the employing unit and paid during the 3 rating 2
years immediately preceding the computation date; and 3

(2) dividing the figure determined under item (1) of this subsection by the 4
total of the reported taxable wages for the same period. 5

(c) For an employing unit that qualifies under § 8–610(a)(3) of this subtitle, the 6
Secretary shall compute a benefit ratio for the employing unit by: 7

(1) adding the regular, work sharing, and extended benefits that were 8
chargeable to the earned rating record of the employing unit and paid during the period 9
beginning with the 1st day of the calendar quarter in which the employing unit first became 10
subject to this title and ending on the June 30 immediately preceding the computation date; 11
and 12

(2) dividing the figure obtained under item (1) of this subsection by the 13
total of the reported taxable wages for the same period. 14

(d) (1) Except as provided in subsections (f), (g), and (h) of this section, for any 15
calendar year beginning on or after January 1, 2006, when the Unemployment Insurance 16
Fund balance on September 30 of the immediately preceding calendar year exceeds 5% of 17
the total taxable wages in covered employment for the 4 completed calendar quarters 18
immediately preceding September 30, the Table of Rates in this paragraph of this 19
subsection shall apply. 20

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Table of Rates – Table A
Employing Employing
Unit’s Benefit Unit’s
Ratio Rate
(1) .0000 –– ....................................................................... 0.30%
(2) .0001 –– .0027 ................................................................... 0.60%
(3) .0028 –– .0054 ................................................................... 0.90%
(4) .0055 –– .0081 ................................................................... 1.20%
(5) .0082 –– .0108 ................................................................... 1.50%
(6) .0109 –– .0135 ................................................................... 1.80%
(7) .0136 –– .0162 ................................................................... 2.10%
(8) .0163 –– .0189 ................................................................... 2.40%
(9) .0190 –– .0216 ................................................................... 2.70%
(10) .0217 –– .0243 ................................................................... 3.00%
(11) .0244 –– .0270 ................................................................... 3.30%
(12) .0271 –– .0297 ................................................................... 3.60%
(13) .0298 –– .0324 ................................................................... 3.90%
(14) .0325 –– .0351 ................................................................... 4.20%

SENATE BILL 827 3

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(2) Except as provided in subsections (f), (g), and (h) of this section, for any 12
calendar year beginning on or after January 1, 2006, when the Unemployment Insurance 13
Fund balance on September 30 of the immediately preceding calendar year exceeds 4.5%, 14
but is not in excess of 5% of the total taxable wages in covered employment for the 4 15
completed calendar quarters immediat