Section 982 Of Article 3. Contribution Rates From California Unemployment Insurance Code >> Division 1. >> Part 1. >> Chapter 4. >> Article 3.
982
. (a) Except as provided in subdivision (b), no employer shall
be eligible for a contribution rate of more or less than 3.4 percent
for any rating period unless his or her reserve account has been
subject to benefit charges during the period of 12 complete
consecutive calendar quarters ending on the computation date for that
rating period and he or she is qualified under Sections 977 and
977.5.
(b) No new employer shall be eligible for a contribution rate of
more or less than 3.4 percent unless his or her reserve account has
been subject to benefit charges during the period of 12 complete
consecutive calendar months ending on the computation date and the
new employer is qualified under Sections 977 and 977.5.
(c) For the purposes of this section "new employer" means any of
the following:
(1) An employer who first qualifies as an employer after the 1969
calendar year, and whose account is continuously subject to benefit
charges from the date of first chargeability, except that a successor
employer under Section 1051 is not a new employer if the successor
applies for or obtains the transfer of the reserve account or part
thereof of a predecessor who is not a new employer.
(2) An employer whose entire reserve account has been transferred
to a successor under Article 5 (commencing with Section 1051) of
Chapter 4 of this part.
(3) An employer whose reserve account has been canceled pursuant
to Section 1029.
(d) Section 905 applies to a new employer, except that for the
purposes of this section "average base payroll" means:
(1) The payroll in the calendar year immediately preceding the
computation date for a new employer with a payroll only in that
calendar year.
(2) The quotient obtained by dividing by two the total amount of
taxable wages paid by a new employer during the most recent period of
two consecutive calendar years immediately preceding the computation
date, for a new employer with a payroll only in each of, or only in
the first of, the two consecutive calendar years.
(e) The contribution rate of an employer, for any period prior to
January 1, 1988, shall not be changed, other than by the provisions
of Sections 977 and 977.5, when the director makes a determination,
pursuant to Section 135.1 or 135.2, because of arrangements entered
into or business activities conducted between January 1, 1984, and
January 1, 1986.
(f) This section does not apply to an employer assigned the
maximum rate pursuant to subdivision (c) of Section 977.