§ 1321. Contributions; taxable wage base changes
(a) Payment of contributions. Contributions shall accrue and become payable by each employer for each calendar
year in which the employer is subject to this chapter, with respect to wages paid
for employment, as defined in subdivision 1301(6) of this subchapter, occurring during
the calendar year, except as otherwise provided in this section. The contributions
shall become due and be payable at times and in installments prescribed by the Board.
(b) Base of contributions. The term “wages” shall not include that part of remuneration that, after remuneration
equal to $13,000.00 on January 1, 2011, and $16,000.00 on January 1, 2012, has been
paid in a calendar year to an individual by an employer with respect to employment
during a calendar year, unless that part of the remuneration is subject to a tax under
a federal law imposing a tax against which credit may be taken for contributions required
to be paid into a state unemployment fund. After January 1, 2012, whenever the Unemployment
Compensation Fund has a positive balance and all advances made to the State Unemployment
Compensation Fund pursuant to Title XII of the Social Security Act have been repaid
as of June 1, the base of contribution amount shall be adjusted on January 1 of the
following year by the same percentage as any increase in the State annual average
wage as calculated pursuant to subsection 1338(g) of this subchapter. When the unemployment
contribution rate schedule established by subsection 1326(e) of this subchapter is
reduced to schedule III, the base of contribution amount shall be reduced by $2,000.00
on January 1 of the following year and shall be adjusted annually thereafter on January
1 of the following year by the same percentage as any increase in the State annual
average wage as calculated pursuant to subsection 1338(g) of this subchapter. When
the unemployment contribution rate schedule established by subsection 1326(e) of this
subchapter is reduced to schedule I, the base of contribution amount shall be reduced
by $2,000.00 on January 1 of the following year and shall be adjusted annually thereafter
on January 1 of the following year by the same percentage as any increase in the State
annual average wage as calculated pursuant to subsection 1338(g) of this subchapter.
For the purposes of this subsection:
(1) any employer who acquired the entire or a distinct and severable portion of the organization,
trade, or business of an employer shall be treated as a single unit with its predecessor
for the calendar year in which the acquisition occurs; and
(2) the term employment shall include service constituting employment under any unemployment
compensation law of another state.
(c)(1) Financing benefits paid to employees of nonprofit organizations.
(A) Benefits paid to employees of nonprofit organizations shall be financed in accordance
with the provisions of this subsection (c).
(B) As used in this subsection (c), “nonprofit organization” means an organization, or
group of organizations, described in Section 501(c)(3) of the U.S. Internal Revenue Code that is exempt from income tax under Section 501(a) of the Internal Revenue Code.
(2) Liability for contributions and election of reimbursement. Any nonprofit organization that, pursuant to subdivision 1301(5)(B)(i) of this chapter,
is or becomes subject to this chapter shall pay contributions under the provisions
of this section unless it elects, in accordance with this subsection, to pay to the
Commissioner for the Unemployment Insurance Trust Fund an amount equal to the amount
of regular benefits and of one-half of the extended benefits paid that is attributable
to service in the employ of the nonprofit organization to individuals for weeks of
unemployment that begin during the effective period of the election.
(A) [Repealed.]
(B) Any nonprofit organization that becomes subject to this chapter may elect to become
liable for payments in lieu of contributions for a period of not less than 12 months
by filing a written notice of its election with the Commissioner not later than 30
days immediately following the date of the determination that the organization is
subject to this chapter.
(C) Any nonprofit organization that makes an election in accordance with subdivision (B)
of this subdivision (c)(2) shall continue to be liable for payments in lieu of contributions
until it files with the Commissioner a written notice terminating its election not
later than 30 days prior to the beginning of the calendar year for which the termination
shall first be effective.
(D) Any nonprofit organization that has been paying contributions under this chapter may
elect to become liable for payments in lieu of contributions by filing with the Commissioner
not later than 30 days prior to the beginning of any calendar year a written notice
of election to become liable for payments in lieu of contributions. An election under
this subdivision (c)(2)(D) shall not be terminable by the organization for that year
and the next year.
(E) The Commissioner may for good cause extend the period within which a notice of election,
or a notice of termination, must be filed and may permit an election to be retroactive.
(F) The Commissioner, in accordance with any applicable rules adopted by the Board, shall
notify each nonprofit organization of any determination that the Commissioner makes
with regard to its status as an employer and the effective date of any election that
the organization makes and of any termination of an election. The determinations shall
be subject to reconsideration and to appeal and review in accordance with the provisions
of section 1337a of this title.
(3) Reimbursement payments. Payments in lieu of contributions shall be made in accordance with the provisions
of this subdivision, including either subdivision (A) or (B).
(A) At the end of each calendar quarter, or at the end of any other period as determined
by the Commissioner, the Commissioner shall bill each nonprofit organization, or group
of nonprofit organizations, that has elected to make payments in lieu of contributions
for an amount equal to the full amount of regular benefits plus one-half of the amount
of extended benefits paid during the quarter or other prescribed period that is attributable
to service in the employ of the organization.
(B)(i) Each nonprofit organization that has elected payments in lieu of contributions may
request permission to make payments as provided in this subdivision (c)(3)(B). Payment
pursuant to the provisions of this subdivision (c)(3)(B) shall become effective upon
approval of the Commissioner.
(ii) At the end of each calendar quarter, the Commissioner shall bill each nonprofit organization
approved to make payments pursuant to the provisions of this subdivision (c)(3)(B)
for an amount representing a percentage of its total payroll for the immediately preceding
calendar year that the Commissioner determines to be appropriate based on the average
benefit costs attributable to service in the employ of nonprofit organizations during
the preceding calendar year. The Commissioner may determine a different rate for any
organization that did not pay wages throughout the four calendar quarters of the preceding
calendar year.
(iii) At the end of each calendar year, the Commissioner may modify the quarterly percentage
of payroll thereafter payable by the nonprofit organization in order to minimize excess
or insufficient payments.
(iv) At the end of each calendar year, the Commissioner shall determine whether the total
of payments for the year made by a nonprofit organization is less than, or in excess
of, the total amount of regular benefits plus one-half of the amount of extended benefits
paid to individuals during the taxable year based on wages attributable to service
in the employ of the organization. Each nonprofit organization whose total payments
for the year are less than the amount determined shall be liable for payment of the
unpaid balance to the Trust Fund in accordance with subdivision (C) of this subdivision
(c)(3). If the total payments exceed the amount so determined for the taxable year,
all or a part of the excess shall, at the election of the nonprofit organization,
be refunded from the Trust Fund or retained in the Trust Fund as part of the payments
that may be required for the next calendar year.
(C) Payment of any bill rendered under subdivision (2) of this subsection (c) or this
subdivision (c)(3) shall be made not later than 30 days after the bill is mailed to
the last known address of the nonprofit organization or is otherwise delivered to
it unless there has been an application for redetermination by the Commissioner or
a petition for hearing before a referee in accordance with subdivision (E) of this
subdivision (c)(3).
(D) Payments made by any nonprofit organization under the provisions of this section shall
not be deducted or deductible, in whole or in part, from the remuneration of individuals
in the employ of the organization.
(E)(i) The amount due specified in any bill from the Commissioner shall be conclusive on
the organization unless, not later than 30 days after the date of the bill, the organization
files an application for reconsideration by the Commissioner, or a petition for a
hearing before a referee, setting forth the grounds for the application or petition.
(ii) The Commissioner shall promptly review and reconsider the amount due specified in
the bill and shall thereafter issue a redetermination in any case in which an application
for redetermination has been filed. Any such redetermination shall be conclusive on
the organization unless, not later than 30 days after the date of the redetermination,
the organization files a petition for a hearing before a referee setting forth the
grounds for the petition.
(iii) Proceedings on the petition for a hearing before a referee on the amount of a bill
rendered under this section or a redetermination of the amount shall be in accordance
with the provisions of section 1331 of this title, and the decision of the referee shall be subject to the provisions of that section.
Review of the decision of the referee by the Employment Security Board shall be in
accordance with, and its decision shall be subject to, the provisions of section 1332 of this title.
(F) Any employer, including the State of Vermont, that makes payments in lieu of contributions
under this section shall be subject to the provisions of sections 1314, 1322, 1328, 1329, 1334, and 1336 of this title as follows:
(i) The employer shall be liable for any reports required by the Commissioner pursuant
to sections 1314 and 1322 of this title.
(ii) The employer shall be liable for any penalty imposed pursuant to sections 1314 and 1328 of this title.
(iii) The employer shall be liable for the same interest on past due payments pursuant to
subsection 1329(a) of this title.
(iv) The employer shall be subject to a civil action for the collection of past due payments
as if those payments were contributions pursuant to subsections 1329(b) and 1334(a) of this title.
(v) The employer shall be subject to actions for the collection of past due payments as
if those payments were contributions pursuant to subsections 1329(c) and (d) and 1334(b)
and (c) and section 1336 of this title; however, those provisions shall not apply to the State of Vermont.
(4) Authority to terminate elections. If any nonprofit organization is delinquent in making payments in lieu of contributions
as required under this subsection, the Commissioner may terminate the organization’s
election to make payments in lieu of contributions as of the beginning of the next
taxable year, and the termination shall be effective for that and the next taxable
year.
(5) Allocation of benefit costs.
(A) Each employer that is liable for payments in lieu of contributions shall pay to the
Commissioner for the Trust Fund the amount of regular benefits plus the amount of
one-half of extended benefits paid that are attributable to service in the employ
of the employer.
(B) If benefits paid to an individual are based on wages paid by more than one employer
and one or more of the employers are liable for payments in lieu of contributions,
the amount payable to the Trust Fund by each employer that is liable for payments
in lieu of contributions shall be an amount that bears the same ratio to the total
benefits paid to the individual as the total base-period wages paid to the individual
by the employer bear to the total base-period wages paid to the individual by all
of the individual’s base-period employers.
(6) Group accounts. Two or more employers that have become liable for payments in lieu of contributions,
in accordance with the provisions of this section and section 1380 of this title, may file a joint application to the Commissioner for the establishment of a group
account for the purpose of sharing the cost of benefits paid that are attributable
to service in the employ of the employers. Each application shall identify and authorize
a group representative to act as the group’s agent for the purpose of this section.
Upon approval of the application, the Commissioner shall establish a group account
for the employers effective as of the beginning of the calendar quarter in which the
Commissioner receives the application and shall notify the group’s representative
of the effective date of the account. The account shall remain in effect for not less
than two years and thereafter until terminated at the discretion of the Commissioner
or upon application by the group. Upon establishment of the account, each member of
the group shall be liable for payments in lieu of contributions with respect to each
calendar quarter in the amount that bears the same ratio to the total benefits paid
in the quarter that are attributable to service performed in the employ of all members
of the group as the total wages paid for service in employment by the member in the
quarter bear to the total wages paid during the quarter for service performed in the
employ of all members of the group. The Board shall adopt rules as it deems necessary
with respect to applications for establishment, maintenance, and termination of group
accounts that are authorized by this subdivision, for addition of new members to,
and withdrawal of active members from, such accounts, and for the determination of
the amounts that are payable under this subsection by members of the group and the
time and manner of the payments.
(7) [Repealed.]
(d) Financing benefits paid to employees of State. In lieu of contributions required of employers subject to this chapter, the State
of Vermont, including State hospitals but excluding any State institution of higher
education, shall pay to the Commissioner, for the Unemployment Compensation Trust
Fund, an amount equal to the amount of benefits paid, including the full amount of
extended benefits paid, attributable to service by individuals in the employ of the
State. At the end of each calendar quarter, or at the end of any other period as determined
by the Commissioner, the Commissioner shall bill the State for the amount of benefits
paid during the quarter or other prescribed period that is attributable to service
in the employ of the State. Subdivisions (c)(3)(C) through (3)(F), inclusive, and
subdivisions (c)(5) and (6) of this section as they apply to nonprofit organizations
shall also apply to the State of Vermont, except that the State shall be liable for
all benefits paid, including the full amount of extended benefits paid, attributable
to service in the employ of the State.
(e) Contributions paid by political subdivisions. Any municipality, any State institution of higher education, and any political or
governmental subdivisions or instrumentalities of the State shall pay contributions,
unless it elects to pay to the Commissioner for the Unemployment Compensation Trust
Fund, an amount equal to the amount of benefits paid, including the full amount of
extended benefits paid, attributable to service by individuals in the employ of the
entity. Subsections (a) and (b) and subdivisions (c)(3)(C) through (3)(F), inclusive,
and subdivisions (c)(4) through (6), inclusive, of this section as they apply to nonprofit
organizations shall also apply to the entities designated in this subsection, except
that these entities shall be liable for all benefits paid, including the full amount
of extended benefits paid, attributable to service in the employ of these entities.
(1) Any entity designated in this subsection may elect to become liable for payments in
lieu of contributions for a period of not less than one calendar year if it files
with the Commissioner a written notice of its election within the 30-day period immediately
following that date.
(2) Any entity designated in this subsection may elect to become liable for payments in
lieu of contributions for a period of not less than one calendar year following the
date on which it becomes subject to the provisions of this chapter by filing a written
notice of its election with the Commissioner not later than 30 days immediately following
the date of the determination of that subjectivity.
(3) Any entity designated in this subsection that makes an election in accordance with
subdivisions (1) and (2) of this subsection will continue to be liable for payments
in lieu of contributions until it files with the Commissioner a written notice terminating
its election not later than 30 days prior to the beginning of the calendar year for
which the termination shall first be effective.
(4) Any entity designated in this subsection that has been paying contributions under
this chapter may change to a reimbursable basis by filing with the Commissioner not
later than 30 days prior to the beginning of any calendar year a written notice of
election to become liable for payments in lieu of contributions. The election shall
not be terminable by the organization for that year and the next year.
(5) The Commissioner may for good cause extend the period within which a notice of election
or a notice of termination must be filed and may permit an election to be retroactive
but not any earlier than with respect to benefits paid after the date that entity
became subject to this chapter.
(6) The Commissioner shall notify each entity designated in this subsection of any determinations
that the Commissioner makes regarding its status as an employer and of the effective
date of any election that it makes and of any termination of that election. The determination
shall be subject to reconsideration and to appeal and review in accordance with the
provisions of section 1337a of this subchapter.
(f) Payments in lieu of contributions considered self-insuring. Any employer who makes payments in lieu of contributions under the provisions of
this section is considered to be self-insuring and shall pay to the Commissioner for
the Unemployment Compensation Trust Fund any amounts the Commissioner finds to be
due under this chapter, including benefits paid but denied on appeal or benefits paid
in error that cannot be properly charged either against another employer who makes
payments in lieu of contributions or against the experience-rating record of another
employer who pays contributions. Benefits improperly paid where repayment by the claimant
is ordered pursuant to subsection 1347(a) or (b) of this title will be credited to
the employer’s account when repayment from the claimant is actually received by the
Commissioner. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1963, No. 106, § 1, eff. Jan. 1, 1964; 1971, No. 77, § 3, eff. Dec. 31, 1971; 1977, No. 64, §§ 8-11, 23; 1979, No. 120 (Adj. Sess.), § 7, eff. April 14, 1980; 1981, No. 86, § 9, eff. May 10, 1981; 1983, No. 16, §§ 3-5, eff. April 4, 1983; 1989, No. 132 (Adj. Sess.), § 4; 1991, No. 183 (Adj. Sess.), § 3; 2009, No. 2 (Sp. Sess.), § 1, eff. June 9, 2009; 2009, No. 124 (Adj. Sess.), § 2; 2023, No. 76, § 41, eff. July 1, 2023; 2023, No. 85 (Adj. Sess.), § 180, eff. July 1, 2024; 2023, No. 184 (Adj. Sess.), § 6, eff. July 1, 2024; 2025, No. 18, § 33, eff. May 13, 2025.)