2019 Tennessee Code
Title 50 - Employer and Employee
Chapter 7 - Tennessee Employment Security Law
Part 4 - Premiums
§ 50-7-405. Period, election and termination of employer's coverage.

(a) Any employing unit that is or becomes an employer subject to this chapter within any calendar year shall be subject to this chapter during the whole of the calendar year.

(b)

• (1)

  • (A) Except as otherwise provided in this section, an employing unit other than one covered under § 50-7-205(5) shall cease to be an employer subject to this chapter only as of January 1 of any calendar year only if it files with the administrator, prior to April 1 of the year, a written application for termination of coverage, and the administrator finds that there were no twenty (20) different days, each day being in a different week within the preceding calendar year, within which the employing unit employed one (1) or more individuals in employment subject to this chapter, and that there was no calendar quarter in either the current or preceding calendar year during which the employing unit paid one thousand five hundred dollars ($1,500) or more in wages for service in employment, or if an agricultural employer, the administrator finds there were no twenty (20) different days, each day being in a different week within the preceding calendar year, within which the employing unit employed ten (10) or more individuals in employment subject to this chapter, and that there were no calendar quarters in either the current or preceding calendar year during which the employing unit paid twenty thousand dollars ($20,000) or more in wages for service in employment, or, if a domestic employer, the administrator finds there were no calendar quarters in either the current or preceding calendar year during which the employing unit paid one thousand dollars ($1,000) or more in cash wages for service in employment. During any calendar year, if the administrator deems advisable, the administrator, on the administrator's own motion, may file an application for termination of coverage on behalf of any employer who, during any preceding year, was liable for premiums under the terms of this chapter but who:

    • (i) Has removed from the state;

    • (ii) Has discontinued the business conducted by the employer at the time the employer became liable under the terms of this chapter;

    • (iii) Has been adjudged bankrupt or insolvent;

    • (iv) Has not, if other than an agricultural or domestic employer, in the preceding or current calendar year for some portion of a day in each of twenty (20) different weeks, whether or not the weeks were consecutive, had in employment one (1) or more individuals, regardless of whether the same individuals were employed in each day, and that there was no calendar quarter in either the current or preceding calendar year during which the employing unit paid one thousand five hundred dollars ($1,500) or more in wages for service in employment;

    • (v) Has not, if an agricultural employer, in the preceding or current calendar year for some portion of a day in each of twenty (20) different weeks, whether or not the weeks were consecutive, had in employment ten (10) or more individuals, regardless of whether the same individuals were employed in each day, and there were no calendar quarters in either the current or preceding calendar year during which the employing unit paid twenty thousand dollars ($20,000) or more in wages for service in employment; or

    • (vi) If a domestic employer, has no calendar quarters in either the current or preceding calendar year during which the employing unit paid one thousand dollars ($1,000) or more in cash wages for service in employment.

  • (B) The application for termination of coverage filed by the administrator on the administrator's own motion shall be acted upon in the same manner as though the application had been filed by the employer.

• (2)

  • (A) Except as otherwise provided in this section, an employing unit that became an employer through the application of § 50-7-205(5) shall cease to be an employer subject to this chapter only as of January 1 of any calendar year only if it files with the administrator, prior to April 1 of such year, a written application for termination of coverage, and the administrator finds that there were no twenty (20) different days, each day being in a different week within the preceding calendar year, within which the employing unit employed four (4) or more individuals in employment subject to this chapter. During any calendar year, if the administrator deems advisable, the administrator on the administrator's own motion, may file an application for termination of coverage on behalf of any employer who, during any preceding year, was liable for contributions or reimbursement of benefits paid and charged to the employer's account under the terms of this chapter, but who has:

    • (i) Removed from the state;

    • (ii) Discontinued the business conducted by the employer at the time the employer became liable under the terms of this chapter;

    • (iii) Been adjudged bankrupt or insolvent; or

    • (iv) Not for some portion of a day in each of twenty (20) different weeks, whether or not the weeks were consecutive, had in employment four (4) or more individuals, regardless of whether the same individuals were employed in each day.

  • (B) The application for termination of coverage filed by the administrator on the administrator's own motion shall be acted upon in the same manner as though the application had been filed by the employer.

(c) Any employing unit that is, or becomes, an employer only by virtue of § 50-7-205(3) shall, in addition to the foregoing requirements of this section, cease to become an employer subject to this chapter only as of January 1 of any calendar year, only if the administrator finds, in addition to the findings prescribed by this section, that within the preceding calendar year no services in employment were performed for the employer with respect to which the employer was liable for any federal tax against which credit may be taken for contributions required to be paid to a state unemployment compensation fund.

(d)

• (1) An employing unit, not otherwise subject to this chapter, that files with the administrator its written election to become an employer subject to this chapter for not less than two (2) calendar years, shall, with the written approval of the election by the administrator, become an employer subject to this chapter to the same extent as all other employers, as of the date stated in the approval, and shall cease to be subject to this chapter as of January 1 of any calendar year, subsequent to the two (2) calendar years, only if it files with the administrator, prior to April 1 of that year, a written notice to that effect, except as otherwise provided by this section.

• (2) Any employing unit, for which services that do not constitute employment, as defined in this chapter, are performed, may file with the administrator a written election that all the services performed by individuals in its employ in one (1) or more distinct establishments or places of business shall be deemed to constitute employment for all the purposes of this chapter for not less than two (2) calendar years. Upon the written approval of the election by the administrator, the services shall be deemed to constitute employment subject to this chapter from and after the date stated in the approval. The services shall cease to be deemed employment subject to this chapter as of January 1 of any calendar year subsequent to the two (2) calendar years, only if the employing unit files with the administrator, prior to April 1 of that year, a written notice to that effect, except as otherwise provided by this section.

• (3) Elective coverage by political subdivisions:

  • (A) Any political subdivision of this state may elect to cover, under this chapter, service performed by employees in all of the hospitals and institutions of higher education, as defined in § 50-7-207(f)(6) and (7), operated by the political subdivision. Election is to be made by filing with the administrator a notice of the election at least thirty (30) days prior to the effective date of the election. The election may exclude any services described in § 50-7-207(c)(5). Any political subdivision electing coverage under this subdivision (d)(3) shall make payments in lieu of premiums with respect to benefits attributable to the employment as provided with respect to nonprofit organizations in § 50-7-403(h);

  • (B) Section 50-7-207(c)(9) with respect to benefit rights based on service for state and nonprofit institutions of higher education shall be applicable also to service covered by an election under this section;

  • (C) The amounts required to be paid in lieu of premiums by any political subdivision under this section shall be billed and payment made as provided in § 50-7-403(h) with respect to similar payments by nonprofit organizations; and

  • (D) An election under this section may be terminated by filing with the administrator written notice not later than thirty (30) days preceding the last day of the calendar year in which the termination is to be effective. The termination becomes effective as of the first day of the next ensuing calendar year with respect to services performed after that date.