New Mexico Administrative Code › Title 11 - LABOR AND WORKERS' COMPENSATION › Chapter 3 - EMPLOYMENT SECURITY › Part 400 - TAX ADMINISTRATION › Section 11.3.400.421 - EMPLOYERS ELECTING COST BASIS FINANCING AND GROUP ACCOUNTS

Current through Register Vol. 35, No. 13, July 16, 2024
A. CHARGING OF
				BENEFITS: Any benefits or any portion thereof, paid on the basis of wage
				credits earned within the claimant's base period with any employer who has
				elected to become liable for payments in lieu of contributions, shall be
				reimbursed by the employer in accordance with Subsection B of Section 51-1 -13
				NMSA 1978, and any benefits or portion thereof, paid on the basis of wage
				credits earned within the claimant's base period with any employer while the
				employer was subject to contributions pursuant to Subsection A of Section 51-1
				-18 NMSA 1978, shall be charged to the experience rating account of the
				employer as provided in Section 51-1 -11 NMSA 1978.
B. DUE DATES OF WAGE AND CONTRIBUTION REPORTS
				AND PAYMENTS IN LIEU OF CONTRIBUTIONS: Each employer who has elected to become
				liable for payments in lieu of contributions shall submit a wage and
				contribution report electronically to the department each calendar quarter with
				respect to wages paid in such quarter. Said wage and contribution report shall
				be submitted on or before the end of the month following the close of the
				calendar quarter to which the wage and contribution report applies. The wages
				so reported shall not be used for computation of rates as provided for
				employers subject to contributions.
C. SUBMISSION OF WAGE AND CONTRIBUTION
				REPORTS FOR GROUP ACCOUNTS: The quarterly wage and contribution report required
				of each group member of a group account shall be transmitted electronically by
				the group representative. The payments in lieu of contributions required of
				each group member shall be transmitted by the group representative, together
				with all amounts owing by all the group members, within 30 days after
				transmission by the department of a statement showing the payments in lieu of
				contributions owing. Each report and any payments required of each employer or
				group member not transmitted within the time specified will be delinquent and
				penalties and interest as provided by the Unemployment Compensation Law shall
				be assessed from and after the delinquent date.
D. EXTENSION OF TIME TO SUBMIT REPORTS: Upon
				written application, transmitted prior to the due date, by an employer, group
				member, or group account representative establishing to the satisfaction of the
				department that good cause exists, excluding any dilatory act, negligence or
				lack of funds on the part of the employer, an extension, not to exceed 30 days,
				may be granted by the department with respect to the due date of the wage and
				contribution report or payment.
E.
				TERMINATION OF RIGHT TO MAKE PAYMENTS IN LIEU OF CONTRIBUTIONS: If, after due
				notice, any employer who has elected to become liable for payments in lieu of
				contributions remains delinquent for payments or interest or penalty, the
				department shall transmit a determination to said employer of pending
				termination of the organization's election to make payments in lieu of
				contributions for the next calendar year. If payment is not forthcoming within
				30 days from the date of said notice, the department shall transmit a final
				determination to such employer that election has been terminated for the next
				calendar year.
F. REQUIREMENTS FOR
				SURETY BOND: At the discretion of the department, termination of an
				organization's election to make payments in lieu of contributions shall
				continue effective for any succeeding calendar year unless the employer
				provides a surety bond or other surety acceptable to the department and
				underwritten by a corporate surety authorized to transact business in New
				Mexico; or an agreement of cash collateral assignment, executed with a state or
				national bank or federally insured savings association authorized to do
				business in New Mexico, as trustee, in a form prescribed by the department.
				Interest, if any, accumulating on the cash collateral assignment shall accrue
				to the employer. Said surety or cash bond shall be in the amount of not more
				than two and seven tenths percent of the taxable wages paid for employment
				subject to the Unemployment Compensation Law by the employer in the four
				quarter period immediately preceding the date of notice of termination was
				issued and shall be released by the department only when no further delinquency
				for payment in lieu of contributions of the employer exists.
G. ESTABLISHING ACCOUNTS, PROVIDING FOR
				ADDITIONS AND WITHDRAWALS OF GROUP MEMBERS: The department, upon receipt of
				properly completed form prescribed by the department bearing the endorsement of
				each group member, accompanied by any forms enumerated therein or otherwise
				requested in writing, shall establish a group account and notify the group
				representative of the effective date as provided in Subsection E of Section
				51-1 -13 NMSA 1978. The group account shall remain in effect for a period of
				not less than two calendar years, ending on December 31, and thereafter, until
				terminated at the discretion of the department, or by approval by the
				department, of an application from the group received on or before December 1,
				immediately preceding the calendar year in which termination is desired. Upon
				establishment and after termination of the group account, each group member,
				group account and group account representative shall be fully liable for:
(1) any payment in lieu of contributions,
				penalties or interest required under Subsection E of Section 51-1 -13 NMSA
				1978, for the period during which any benefits or portion thereof are payable
				on the basis of wage credits earned during the period the claimant's base
				period employer was a group member; and
(2) the performance of the group
				representative.