New Mexico Administrative Code › Title 11 - LABOR AND WORKERS' COMPENSATION › Chapter 3 - EMPLOYMENT SECURITY › Part 400 - TAX ADMINISTRATION › Section 11.3.400.415 - CONTRIBUTION RATING OF EMPLOYERS

Current through Register Vol. 35, No. 13, July 16, 2024
Contribution rates for employers are calculated in
				  accordance with Section
				  51-1-11
				  NMSA 1978.
A. ELIGIBILITY OF
				EMPLOYER'S ACCOUNT FOR COMPUTED RATE BASED ON 24 MONTHS EXPERIENCE. For
				purposes of the interpretation and application of Subsection F of Section
				51-1-11
				NMSA 1978, no employer's experience rating account shall be deemed to have been
				chargeable with benefits throughout the preceding 24 consecutive calendar month
				period ending on a computation date as defined in Subsection J of
				11.3.400.7
				NMAC, unless as of such computation date, the department finds that the
				employer paid wages in employment during any part of the first calendar quarter
				of the 24 month period ending on such computation date and that the payment of
				such wages was not interrupted for eight or more consecutive calendar quarters,
				or by termination of coverage under Section
				51-1-18
				NMSA 1978; provided, all quarterly wage and contribution reports received by
				the department by July 31 following the computation date will be considered in
				computing the rate for the succeeding calendar year.
B. CONTRIBUTING EMPLOYERS FOR 24 MONTHS. For
				each calendar year, if, as of the computation date of that year, an employer
				has been a contributing employer throughout the preceding 24 months, the
				contribution rate for that employer shall be determined by multiplying the
				employer's benefit ratio by the reserve factor then multiplying that product by
				the employer's experience history factor. An employer's benefit ratio is
				determined by dividing the employer's benefit charges during the immediately
				preceding fiscal years, up to a maximum of three fiscal years, by the total of
				the annual payrolls of the same time period, calculated to four decimal places,
				disregarding any remaining fraction. The reserve factor is the annual numerical
				factor determined by the department that is necessary to ensure that the
				unemployment trust fund sustains an adequate reserve. The employer's experience
				history factor shall be based on the employer's reserve. The employer's reserve
				shall be calculated as the difference between all of the employer's previous
				years' contribution payments and all of the employer's previous years' benefit
				charges, divided by the average of the employer's annual payrolls for the
				immediately preceding fiscal years, up to a maximum of three fiscal years,
				calculated to four decimal places, disregarding any remaining fraction, as set
				forth in the following table and provided that an employer's contribution rate
				shall not be less than thirty-three hundredths percent or more than five and
				four-tenths percent.
If an employer's reserve is:
The employer's experience history factor is:
6.0% and over
0.4000
5.0% - 5.9%
0.5000
4.0% - 4.9%
0.6000
3.0% - 3.9%
0.7000
2.0% - 2.9%
0.8000
1.0% - 1.9%
0.9000
0.0% - 0.9%
0.9500
Under 0.0%
1.0000
C.
				CONTRIBUTING EMPLOYERS FOR LESS THAN 24 MONTHS. For each calendar year, if, as
				of the computation date of that year, an employer has been a contributing
				employer for less than 24 months, the contribution rate for that employer shall
				be the average of the contribution rates for all contributing employers in the
				employer's industry based on its North American industry classification system
				(NAICS) sector, but shall not be less than one percent or more than five and
				four-tenths percent; provided that an individual, type of organization or
				employing unit that acquires all or part of a employing enterprise that has a
				rate of contribution less than the average of the contribution rates for all
				contributing employers in the employer's industry, shall be entitled to the
				transfer of the contribution rate of the other employing unit to the extent
				permitted pursuant to Subsection D of
				11.3.400.417
				NMAC.
D. EXCESS CLAIMS PREMIUM. If
				an employer's contribution rate pursuant to Subsection B of 11.3.400.415 NMAC
				is calculated to be greater than five and four-tenths percent, notwithstanding
				the limitation in Subsection B of 11.3.400.415 NMAC, the employer shall be
				charged an excess claims premium in addition to the contribution rate
				applicable to the employer; provided that an employer's excess claims premium
				shall not exceed one percent of the employer's annual payroll. The excess
				claims premium shall be determined by multiplying the employer's excess claims
				rate by the employer's annual payroll. An employer's excess claims rate shall
				be determined by multiplying the difference of the employer's contribution
				rate, notwithstanding the limitation in Subsection B of 11.3.400.415 NMAC, less
				five and four-tenths percent by ten percent.
E. NOTIFICATION OF ANNUAL RATE CONTRIBUTIONS.
				The department shall promptly notify each employer of the employer's rate of
				contributions and excess claims premium as determined for any calendar year on
				or before January 31st of the year the rate is effective. Such notification
				shall include the amount determined as the employer's annual payroll, the total
				of all of the employer's contributions paid on the employer's behalf for all
				the past years, total benefits charged to the employer for all such years and
				the employer's experience history factor. For an employer that has been a
				contributing employer for less than 24 months, the contribution rate for that
				employer shall be the average of the contribution rates for all contributing
				employers in the employer's industry as set forth in Subsection C of
				11.3.400.415 NMAC. Such determination shall become conclusive and binding upon
				the employer unless, within 30 days after the service of notice thereof to the
				employer's address of record, the employer files an application for review and
				redetermination, setting forth the employer's reason therefor. The employer
				shall be promptly notified of the decision on the employer's application for
				review and redetermination, which shall become final unless, within 15 days
				after the service of notice thereof to the employer's address of record,
				further appeal is initiated pursuant to Subsection B of
				11.3.500.8
				NMAC. The employer shall not have standing, in any appeal involving the
				employer's rate of contributions or contribution liability, to contest the
				chargeability to the employer of any benefits paid in accordance with a
				decision pursuant to Section
				51-1-8 NMSA
				1978, except upon the ground that the services on the basis of which such
				benefits were found to be chargeable did not constitute services performed in
				employment for the employer and only in the event that the employer was not a
				party to the decision, or to any other proceedings under the Unemployment
				Compensation Law in which the character of such services was
				determined.
F. NOTIFICATION OF
				QUARTERLY CHARGES. The department shall provide each contributing employer a
				written determination of benefits chargeable to the employer within 90 days of
				the end of each calendar quarter. Such determination shall become conclusive
				and binding upon the employer unless, within 30 days after the service of the
				determination to the employer's address of record, the employer files an
				application for review and redetermination, setting forth the employer's reason
				therefor. The employer shall be promptly notified of the decision on the
				employer's application for review and redetermination, which shall become final
				unless, within 15 days after the service of notice thereof to the employer's
				address of record, further appeal is initiated pursuant to Subsection B of
				11.3.500.8
				NMAC. The employer shall not have standing, in any appeal involving the
				employer's quarterly rate of contributions or contribution liability, to
				contest the chargeability to the employer of any benefits paid in accordance
				with a decision pursuant to Section
				51-1-8 NMSA
				1978, except upon the ground that the services on the basis of which such
				benefits were found to be chargeable did not constitute services performed in
				employment for the employer and only in the event that the employer was not a
				party to the decision, or to any other proceedings under the Unemployment
				Compensation Law in which the character of such services was
				determined.
G. CORRECTION OF
				ERRORS. The secretary shall correct any error in the determination of an
				employer's rate of contribution during the calendar year to which the erroneous
				rate applies, notwithstanding that notification of the employer's rate of
				contribution may have been issued and contributions paid pursuant to the
				notification. Upon issuance by the division of a corrected rate of
				contribution, the employer shall have the same rights to review and
				redetermination as provided in Subsection E of 11.3.400.415 NMAC.