2005 Idaho Code - 72-1349A — FINANCING OF BENEFIT PAYMENTS BY NONPROFIT ORGANIZATIONS AND GOVERNMENTAL ENTITIES

                                  TITLE  72
                      WORKER'S COMPENSATION AND RELATED
                        LAWS -- INDUSTRIAL COMMISSION
                                  CHAPTER 13
                           EMPLOYMENT SECURITY LAW
    72-1349A.  FINANCING OF BENEFIT PAYMENTS BY NONPROFIT ORGANIZATIONS AND
GOVERNMENTAL ENTITIES. (1) Benefits paid to employees of governmental entities
and nonprofit organizations shall be financed in accordance with the
provisions of this section.
    A group of such organizations or entities may elect, with the approval of
the director, to act as a group in fulfilling the requirements of this
chapter.
    (2)  Liability for contributions and election of reimbursements. A
nonprofit organization or governmental entity shall pay contributions under
the provisions of section 72-1349, Idaho Code, unless it elects, in accordance
with this section to pay to the director an amount equal to the full amount of
regular benefits paid and the amount paid for extended benefits for which the
department is not reimbursed by the federal government, for any reason
including, but not limited to, payments made as a result of a determination or
payments erroneously paid or paid as a result of a determination of
eligibility which is subsequently reversed if said payment or any portion
thereof was made as a result of wages earned in the employ of such
organization or entity. Any sums recovered by the department from a claimant
as a result of said payments shall be credited to the account of the nonprofit
organization or governmental entity which reimbursed the fund for the payment
of said benefits. Where such benefits are paid utilizing wages paid by two (2)
or more employers, the portion of benefits to be repaid by the organization or
entity shall be its proportionate share.  This shall be computed on the basis
of the relationship between wages utilized which were earned for services
performed for such organization or entity and the total wages utilized in
paying such benefits.
    (3)  Any nonprofit organization or governmental entity may elect to become
liable for payments in lieu of contributions, provided it files with the
director a written notice of election not later than thirty (30) days prior to
the beginning of any taxable year or within thirty (30) days after the date of
the final determination that such organization or entity is subject to this
chapter. Such election shall be effective for not less than two (2) full
taxable years  after the election is made, and will continue to be in effect
until terminated.  The organization or entity must file with the director a
written notice of termination of such election not later than thirty (30) days
prior to the beginning of the taxable year for which such termination shall
first be effective. The director may, in his discretion, terminate an election
as provided in this section or extend the period within which a notice of
election or a notice of termination must be filed. The director shall notify
each nonprofit organization and governmental entity of any determination he
makes of its status as an employer and of the effective date of any election
which it makes and of any termination of such election.
    (4)  Reimbursement payments. Payments in lieu of contributions shall be
made in accordance with the provisions of this subsection, including either
paragraph (a) or paragraph (b).
    (a)  At the end of each calendar quarter, or at the end of any other
    period as determined by the director, the director shall bill each
    organization or entity (or group of organizations or entities) which has
    elected to make payments in lieu of contributions for an amount equal to
    the full amount of regular benefits paid, and the amount paid for extended
    benefits for which the department is not reimbursed by the federal
    government, if paid as a result of wages earned in the employ of such
    organization or entity.
    (b)  Payment in advance. Nonprofit organizations or governmental entities
    may elect to make payments in lieu of contributions in advance of actual
    billing for payment costs. Advance payments shall be made as follows:  At
    the end of each calendar quarter, the nonprofit organization or
    governmental entity shall pay one percent (1%) of its total quarterly
    payroll unless the director determines that a lesser percentage will cover
    the cost of payment of benefits to the employees of said employer. For
    purposes of this section, the total quarterly payroll for school districts
    shall be computed based upon only those school districts which have
    elected cost reimbursement status. Such payments shall become due and
    payable within thirty (30) days following the quarter ending.
         At the end of such taxable year, the director shall compute the
    benefit costs attributable to the employer as provided in subsection (2)
    of this section. The director will then debit the employer's account with
    these costs. When payments exceed benefit costs, either the employer will
    be credited on subsequent benefit costs with the overpayment or, at the
    director's discretion, the overpayment will be refunded to the employer.
    When payments are not sufficient to pay benefit costs, either the employer
    will be billed the additional amount necessary to pay such costs or, at
    the director's discretion, the employer's advance payment rate for the
    next taxable year will be set at a rate that will cover such costs.
    (5)  Bond requirements. Any nonprofit organization that elects to become
liable for payments in lieu of contributions may be required to obtain and
deposit with the director a surety bond approved by the director. The amount
of the bond shall be determined by the director on the basis of potential
liability for benefit costs of each employing nonprofit organization. Such
bond shall be in force for a period of not less than two (2) years, and shall
be renewed not less frequently than two (2) year intervals for as long as the
organization continues to be liable for payments in lieu of contributions. The
director shall require adjustments to be made in the bond filed as deemed
appropriate. When upward adjustments are required, the adjusted bond shall be
filed within thirty (30) days of the date notice of the required adjustment
was mailed. Failure by an organization covered by such bond to pay the full
amount of payments due, together with interest and penalties, as provided in
section 72-1354, Idaho Code, shall render  the surety liable on said bond to
the extent of the bond, as though the surety was a liable organization.
    (6)  Failure to pay timely. If any nonprofit organization or governmental
entity is delinquent in making payments in lieu of contributions, the director
may terminate such employer's election to make payments in lieu of
contributions as of the beginning of the next taxable year, and such
termination shall be effective for that and the next taxable year. Any
nonprofit organization or governmental entity becoming delinquent in making
payments in lieu of contributions shall be subject to the same penalty
provisions as any other covered employer as provided in this chapter.
    (7)  Appeals procedure. Nonprofit organizations and governmental entities
making payments in lieu  of contributions may appeal a determination made
pursuant to this section as provided in section 72-1361, Idaho Code.
    (8)  In the payment of any payments in lieu of contributions a fractional
part of a dollar shall be disregarded unless it amounts to fifty cents (50¢)
or more, in which case it shall be increased to one dollar ($1.00).