Section 984.5 Of Article 3. Contribution Rates From California Unemployment Insurance Code >> Division 1. >> Part 1. >> Chapter 4. >> Article 3.
984.5
. (a) Effective January 1, 1994, the director shall prepare a
statement on or before November 30 of each calendar year, which shall
be a public record, declaring the rate of contributions of the
succeeding calendar year for all employers and self-employed
individuals covered under Section 708 or 708.5 and shall notify
promptly the employers and self-employed individuals of the rate. For
calendar years 1994 to 1996, inclusive, worker contributions
required under Section 708 or 708.5 shall be at a rate determined by
the director to reimburse the Disability Fund for the sum of
estimated administrative costs due to those sections and unemployment
compensation disability benefits estimated to be paid to all
employers and self-employed individuals covered by those sections.
The rate shall be determined by dividing the sum of the benefits
expected to be paid in the following calendar year and the
administrative costs expected to be incurred under Section 708 or
708.5 during that calendar year by earnings estimated to be reported
under those sections for that same calendar year. The resulting rate
shall be rounded to the next higher one-hundredth percentage point.
This rate may also be reduced or increased by a factor estimated to
maintain as nearly as practicable a cumulative zero balance in funds
contributed pursuant to Section 708 or 708.5.
For calendar year 1997, and each calendar year thereafter, the
rate established each November 30 shall be determined by multiplying
the current year's rate by the ratio of 1.10 times the current year
disbursements divided by contributions for the same period, under
Sections 708 and 708.5. If in any calendar year the cumulative
balance of contributions minus disbursements equals or exceeds 20
percent of annual disbursements, the contribution rate for the
succeeding year shall be adjusted to a level necessary to maintain
revenues at no more than 20 percent over annual disbursements. If
legislation is enacted necessitating adjustments in the benefit
levels for employers and self-employed individuals covered under
Section 708 or 708.5, the rate may be adjusted by a factor estimated
to provide that funds contributed pursuant to Section 708 or 708.5
cover disbursements pursuant to these sections.
For the purpose of this subdivision, disbursements are defined as
the sum of unemployment compensation disability benefits paid to
employers and self-employed individuals covered under Section 708 or
708.5, plus administrative costs related to those sections. Estimates
made pursuant to this subdivision shall be available for public
inspection.
(b) The director's action in determining a rate under this section
shall not constitute an authorized regulation.