2015 Tennessee Code
Title 50 - Employer And Employee
Chapter 7 - Tennessee Employment Security Law
Part 5 - Funds
§ 50-7-505 - Assessment for payment of interest -- Interest paid on advancement fund.

TN Code § 50-7-505 (2015) What's This?

(a) In addition to all other premiums due under this chapter, if on any June 1, the fund has utilized during the preceding eight-month period or it has been determined that during the next four-month period ending on September 30, the fund will utilize moneys advanced under 42 U.S.C. § 1321 and interest is or will be due on the moneys advanced, each employer, except any employer who has not had benefits charged against the employer's account during the two-year period ending on the preceding December 31, and who has not had a negative balance in the employer's account during the same two-year period, shall be assessed an amount that will be used exclusively for the payment of interest due on the advance.

(b) The rate at which each such employer liable under subsection (a) will be assessed shall be determined by dividing the interest that will be due on the next September 30, by ninety-five percent (95%) of the total taxable wages paid during the preceding calendar year ending on December 31 by those employers liable under subsection (a).

(c) In order to determine the assessment of each employer liable under subsection (a), multiply the rate as determined in subsection (b) by each such employer's total taxable wages paid during the preceding calendar year ending on December 31.

(d) Each employer liable under subsection (a) shall be notified of the amount due as a result of subsection (a) on or before June 30. The amount shall be considered delinquent if not paid on or before July 31. Amounts that are unpaid on the day following the date due and payable shall bear interest at the same rate as for regular premiums.

(e) The amount of the assessment will not be included in the determination of an employer's experience rating.

(f) There is created in the state treasury a special fund, to be known as the interest paid on advancement fund (IPA fund).

(g) All moneys collected under this section shall be deposited into the IPA fund and are appropriated and made available exclusively to the commissioner of labor and workforce development for use in paying interest owed on advancements.

(h) All remedies applicable to the collection of employer premiums are applicable to this section.

(i) Any interest required to be paid on advances under the Social Security Act, Title XII, compiled in 42 U.S.C. § 1321 et seq., shall be paid in a timely manner and shall not be paid, directly or indirectly, by an equivalent reduction in unemployment premiums or otherwise, from amounts in the unemployment fund.

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