2005 Idaho Code - 72-1346A — ADVANCES UNDER TITLE XII OF THE SOCIAL SECURITY ACT TO EMPLOYMENT SECURITY FUND -- FEDERAL ADVANCE INTEREST REPAYMENT FUND

                                  TITLE  72
                      WORKER'S COMPENSATION AND RELATED
                        LAWS -- INDUSTRIAL COMMISSION
                                  CHAPTER 13
                           EMPLOYMENT SECURITY LAW
    72-1346A.  ADVANCES UNDER TITLE XII OF THE SOCIAL SECURITY ACT TO
EMPLOYMENT SECURITY FUND -- FEDERAL ADVANCE INTEREST REPAYMENT FUND. (1) In
the event the director determines that it is necessary to obtain advances from
the federal unemployment account in the unemployment trust fund pursuant to
title XII of the social security act (42 U.S.C. 1321), and that a request for
such advances is authorized under section 1201 of the social security act, or
under any other act of congress extending such authority, the director shall
request the governor to make application to the secretary of labor of the
United States for such advances.
    (2)  The governor is authorized to make application to the secretary of
labor of the United States to obtain advances pursuant to title XII of the
social security act (42 U.S.C. 1321 et seq.). Funds so advanced shall be for
the payment of unemployment insurance benefits.
    (3)  Any amount transferred to the employment security fund by the
secretary of the treasury of the United States in accordance with this section
shall be repaid from the employment security fund as provided in section 1202
of the social security act (42 U.S.C. 1322).
    (4)  There is established in the state treasury the "Federal Advance
Interest Repayment Fund." This fund shall consist of all moneys collected
pursuant to subsection (5) of this section and interest earned upon any moneys
in the fund. All moneys in the fund are perpetually appropriated to the
director for the payment of interest on any advance made to this state
pursuant to title XII of the social security act, except that if, at the end
of any calendar year, all advances and interest have been repaid, any
remaining balance in the fund shall be transferred to the employment security
fund. Interest charges due and payable pursuant to section 1202 of the social
security act, may be paid by the director from the federal advance interest
repayment fund. Such expenditures shall not be subject to any law requiring
specific appropriations or other formal release by state officers of money in
their custody, nor shall such expenditures require the approval of the board
of examiners.
    (5)  A federal advance interest repayment tax may be levied in accordance
with the following provisions when required under paragraph (b) of this
subsection:
    (a)  On the first day of the third month of a calendar quarter, the
    director shall:
         (i)   Estimate the interest payable on federal advances obtained
         under subsections (1) and (2) of this section;
         (ii)  Estimate the amount of federal advance interest repayment tax
         receipts expected to be collected during the quarter for any
         preceding calendar quarter in which such tax was assessed;
         (iii) Add the amount in the federal advance interest repayment fund
         on the last day of the immediately preceding calendar quarter to the
         estimate in paragraph (ii) of this subsection; and
         (iv)  Subtract the sum obtained in paragraph (iii) from the estimate
         in paragraph (i) of this subsection.
    (b)  If the remainder obtained under paragraph (iv) of subsection (5)(a)
    of this section is more than zero, each covered employer subject to this
    section may, at the director's sole discretion, be assessed a federal
    advance interest repayment tax. Such tax shall be a percentage of the
    contributions payable under sections 72-1349 and 72-1350, Idaho Code, for
    the calendar quarter, but in no case shall be less than one dollar
    ($1.00). The percentage shall be determined by dividing the remainder in
    paragraph (iv) of subsection (5)(a) of this section by the estimated
    amount of contributions due and payable on wages paid during the quarter.
    The percentage shall be rounded up to the next one-tenth of a percent
    (0.1%).
    (c)  The tax assessed shall be collected and paid in accordance with such
    rules as the director may prescribe. All such taxes collected shall be
    deposited in the federal advance interest repayment fund. Any such tax
    imposed in a calendar quarter shall be paid on or before the last day of
    the second month following the close of such calendar quarter. An
    extension of time for payment may be granted for good cause in accordance
    with section 72-1349(4), Idaho Code.
    (d)  If any covered employer fails to pay such tax on or before the date
    on which they are due, such tax shall bear penalty at a rate of five
    dollars ($5.00) for each month or fraction thereof until paid; provided,
    that in no case shall the penalty exceed the actual amount of the tax due
    and payable. The date of payment shall be deemed the date of actual
    receipt by the director, or if mailed, the date of mailing. Penalties
    collected pursuant to this subsection shall be paid into the federal
    advance interest payment fund. Furthermore, if any employer becomes
    delinquent in making payment of the tax as required by this subsection,
    such employer shall be subject to the collection provisions in sections
    72-1355 and 72-1360, Idaho Code.
    (e)  A covered employer may make application to the director for a refund
    or credit of any amount erroneously paid as tax under this subsection.
    Such applications and the director's determinations regarding them shall
    be made in accordance with the provisions of section 72-1357, Idaho Code.
    (f)  This section does not apply to covered employers eligible and
    electing the cost reimbursement payment method under section 72-1349A,
    Idaho Code.