California Code of Regulations › Title 22 - Social Security › Division 1 - Employment Development Department › Subdivision 1 - Director of Employment Development › Division 1 - Unemployment and Disability Compensation › Part 1 - Unemployment Compensation › Chapter 3 - SCOPE OR COVERAGE › Article 5 - ELECTIONS FOR FINANCING UNEMPLOYMENT INSURANCE COVERAGE › Section 803-1 - Elective Financing -Nonprofit Organizations, Public Entities

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) A nonprofit
						  organization or public entity under Sections
						  702.1,
						  710,
						  801, and
						  802 of the code may elect to
						  reimburse the cost of benefits paid pursuant to Section
						  803 of the code and subdivision
						  (b) of this section, in lieu of contributions required of employers. As used in
						  this section, "entity" means any such employing unit that is authorized by
						  Sections 702.1,
						  710,
						  801, and
						  802 of the code to elect the cost
						  of benefits paid method of financing permitted under Section
						  803 of the code.
(b) An entity may elect to pay into the
						  Unemployment Fund the cost of benefits (including extended duration benefits
						  and federal-state extended benefits) paid based on base period wages with
						  respect to employment for that entity and charged to its account in the manner
						  provided by Section
						  1026 of the code. "The cost of
						  benefits paid" means the proportion of the total amount of benefits paid to the
						  claimant which the total wages paid to that claimant in his or her base period
						  by that entity bears to the total wages paid to that claimant in employment by
						  all employers in his or her base period.
The director shall prepare an annual statement, which
							 shall be a public record, calculating the maximum potential liability of any
							 reimbursing public entity and of any nonprofit organization. The federal
							 government pays one-half the cost of federal-state extended benefits for
							 reimbursing nonprofit organizations. Public entities bear the full cost of
							 reimbursing federal-state extended benefits for weeks of unemployment on or
							 after January 1, 1979.
(c)
						  An application for elective financing under subdivision (b) of Section
						  803 of the code may be made at the
						  time an application is made for elective coverage under the code and shall be
						  effective on the effective date of the elective coverage agreement, or may be
						  made in any calendar quarter and shall take effect with respect to services
						  performed from and after the first day of the calendar quarter in which the
						  election is filed with the director, pursuant to Sections
						  801 and
						  802 of the code.
(d) Except as provided in subdivisions (e)
						  and (f) of this section and by subdivision (e) of Section
						  803 of the code, an approved
						  elective financing agreement may not be amended or terminated until it has been
						  in effect for not less than two full calendar years.
(e) If an entity under an approved elective
						  coverage agreement is succeeded in whole or in part by another entity, the
						  successor, if it elects to continue the elective coverage agreement of the
						  predecessor in accordance with the provisions of subdivision (d) of Section
						  702.1-1 or subdivision (d) of
						  Section 710-1 of these regulations, may
						  elect to continue the method of financing elected by the predecessor or may
						  elect one of the methods of financing set forth in this section in lieu of
						  paying contributions required of employers. If the successor is required to
						  continue the elective coverage agreement of the predecessor in accordance with
						  the provisions of subdivision (d) of Section
						  702.1-1 or subdivision (d) of
						  Section 710-1 of these regulations, the
						  successor's elective financing agreement shall relate to the continued elective
						  coverage agreement of the predecessor.
(f) If an approved elective coverage
						  agreement is terminated as provided in Section
						  705-1 or subdivision (c) or (d) of
						  Section 702.1-1 or subdivision (c) or (d)
						  of Section
						  710-1 of these regulations, any
						  approved elective financing agreement shall also terminate upon the date of the
						  termination of the elective coverage agreement to which the financing
						  relates.
1.
							 Amendment filed 12-18-78; effective thirtieth day thereafter (Register 78, No.
							 50). For prior history, see Register 76, No. 6.
2. Amendment of
							 subsection (b) filed 11-20-81; effective thirtieth day thereafter (Register 81,
							 No. 47).
Note: Authority cited: Sections
								305
								and
								306,
								Unemployment Insurance Code. Reference: Sections
								702.1,
								705,
								710,
								801,
								802
								and
								803,
								Unemployment Insurance Code.