DAR File No. 27318

Workforce Services, Workforce Information and Payment Services

R994-310

Coverage

NOTICE OF PROPOSED RULE

DAR File No.: 27318
Filed: 07/30/2004, 01:22
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The changes are made to reflect statutory changes made in S.B. 5, 2004 General Session. (DAR NOTE: S.B. 5 is found at UT L 2004 Ch 7, and was effective 07/01/2004.)

Summary of the rule or change:

Previously only those employers who paid wages of $140 per quarter or more were subject to the Employment Security Act. Under the amendment in S.B. 5, all employers who pay wages are subject to the Act.

State statutory or constitutional authorization for this rule:

Section 35A-4-310

Anticipated cost or savings to:

the state budget:

There are no costs or savings to the State budget because unemployment is a federally-funded program. The State's unemployment liability will remain unchanged.

local governments:

There are no costs or savings to local governments because this is a federally-funded program. Local government's unemployment liability will remain the same.

other persons:

There are no costs or savings to any person as a result of this change. The change is being made to comply with State law.

Compliance costs for affected persons:

There are no compliance costs associated with this change.

Comments by the department head on the fiscal impact the rule may have on businesses:

It is not anticipated that there will be any fiscal impact on any business by this rule as there are no businesses currently paying less than $140 per quarter in wages. Additionally, since this rule change is only being made to reflect the change made in statute, it is assumed that any costs which might be associated with this change were contemplated in the statutory change which is identical.

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Direct questions regarding this rule to:

Suzan Pixton at the above address, by phone at 801-526-9645, by FAX at 801-526-9211, or by Internet E-mail at spixton@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

09/15/2004

This rule may become effective on:

09/16/2004

Authorized by:

Raylene G. Ireland, Executive Director

RULE TEXT

R994. Workforce Services, Workforce Information and Payment Services.

R994-310. Coverage.

R994-310-102. Terminating Coverage.

(1) [Coverage will be terminated in two ways:

(a) Upon written request from the employing unit, coverage shall be terminated when the employing unit has paid wages less than $140 in each of the four calendar quarters of the preceding calendar year.

(b) ]Coverage will automatically be terminated [only ]if the employing unit has paid no wages in the preceding calendar year.

(2) If within the calendar year after coverage is terminated an employer becomes subject to the Act again, the termination will be canceled or the employer's account will be re-opened.[ The employer is then responsible for filing delinquent reports caused by the cancellation of the termination and those reports are due 30 days after it is determined that the employer is subject again.]

(3) If the Department determines that the termination was not bona fide, but an attempt to manipulate the rate provisions of the Act, the termination will be canceled and the employer will be assigned [his]it's earned rate.

R994-310-103. Elections to Become Covered.

An employing unit's election to become covered under the Act for either the entire employing unit or for services which do not constitute employment as defined in the Act, may be approved by the Executive Director [of the Department]or designee.

KEY: unemployment compensation, coverage*

[1989]2004

Notice of Continuation July 14, 2004

35A-4-310

ADDITIONAL INFORMATION

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For questions regarding the content or application of this rule, please contact Suzan Pixton at the above address, by phone at 801-526-9645, by FAX at 801-526-9211, or by Internet E-mail at spixton@utah.gov

For questions about the rulemaking process, please contact the Division of Administrative Rules (801-538-3764). Please Note: The Division of Administrative Rules is NOT able to answer questions about the content or application of these administrative rules.