California Unemployment Insurance Code 828 – Each school employer shall be responsible for a quarterly local …
Each school employer shall be responsible for a quarterly local experience charge as set forth below, together with the charges or penalties set by the administrator for administrative indiscretions, including tardiness and error, as well as all costs for benefits and administration resulting from failure to properly cover an employee. The reimbursement for charges shall be delinquent 30 days from the date of notice and if not paid within the time required, the school employer shall pay a penalty of 10 percent of the unpaid amount, plus interest at the adjusted annual rate established pursuant to § 19521 of the Revenue and Taxation Code from and after the date of delinquency until paid. The local experience charge to be levied against each school employer shall be computed as follows:
Local Experience Charge
Terms Used In California Unemployment Insurance Code 828
- administrator: means the Director of Employment Development. See California Unemployment Insurance Code 821.3
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- school employer: means the governing board of any school district or community college district, any county board of education, any county superintendent of schools, or any personnel commission of a school district or community college district which has a merit system pursuant to any provision of the Education Code, or any instrumentality of the foregoing, or any instrumentality of more than one of the foregoing, which employs one or more employees. See California Unemployment Insurance Code 821.4
(a) The local experience charge rate shall be 10 percent for the first three complete fiscal years of participation in the School Employees Fund.
(b) The local experience charge rate for the fourth fiscal year, and each succeeding fiscal year, shall be determined by dividing the reserve balance at the end of the fiscal year which began 24 months prior to the fiscal year for which the rate is being calculated by the benefits paid for that same prior fiscal year.
The factor derived is the employer’s reserve ratio. If, as of the computation date, the school employer’s reserve ratio equals or exceeds that which appears on any line in column 1 of the following table, but is less than that which appears in column 2 of that table, the local experience charge rate shall be the figure appearing on that same line in column 3 of that table.
| (Column 1) | (Column 2) | (Column 3) | ||
| Line | Reserve Ratio | Rate | ||
| 1 …………………… negative | to | 1.00 | 15% | |
| 2 …………………… 1.00 | to | 2.00 | 10% | |
| 3 …………………… 2.00 | to | 3.00 | 5% | |
| 4 …………………… 3.00 | or | more | 0% | |
(c) The rate determined in subdivision (a) or (b) shall be multiplied by the employer’s quarterly benefit charges to compute the local experience charges.
The administrator shall, not later than March 31 of each year, notify each school employer participating in the School Employees Fund of their local experience charge rate for the succeeding fiscal year.
(Amended by Stats. 2005, Ch. 152, Sec. 8. Effective January 1, 2006.)