Benefits paid to employees of nonprofit organizations must be financed in accordance with the provisions of this section. For the purpose of this section, a nonprofit organization is an organization, or group of organizations, described in section 501(c)(3) of the United States Internal Revenue Code which is exempt from income tax under section 501(a) of such code. 1. Liability for contributions and election of reimbursement. Any nonprofit organization which, pursuant to subdivision i of subsection 15 of section 52-01-01, is, or becomes, subject to the North Dakota unemployment compensation law on or after January 1, 1972, shall pay contributions under the provisions of this chapter, unless it elects, in accordance with this subsection, to pay to the bureau for the unemployment 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 such nonprofit organization, to individuals for weeks of unemployment which begin during the effective period of such election. a. Any nonprofit organization which is, or becomes, subject to the North Dakota unemployment compensation law on January 1, 1972, may elect to become liable for payments in lieu of contributions for a period of not less than one taxable year beginning with January 1, 1972, provided it files with the bureau a written notice of its election within the thirty-day period immediately following such date or within a like period immediately following the date of enactment of this subdivision, whichever occurs later. b. Any nonprofit organization which becomes subject to the North Dakota unemployment compensation law after January 1, 1972, may elect to become liable for payments in lieu of contributions for a period of not less than twelve months beginning with the date on which such subjectivity begins by filing a written notice of its election with the bureau not later than thirty days immediately following the date of the determination of such subjectivity. c. Any nonprofit organization which makes an election in accordance with subdivision a or subdivision b will continue to be liable for payments in lieu of contributions until it files with the bureau a written notice terminating its election not later than thirty days prior to the beginning of the taxable year for which such
termination shall first be effective, and it shall thereafter be treated as a new or newly covered employer for the purpose of rate computation. d. Any nonprofit organization which has been paying contributions under the North Dakota unemployment compensation law for a period subsequent to January 1, 1972, may change to a reimbursable basis by filing with the bureau not later than thirty days prior to the beginning of any taxable year a written notice of election to become liable for payments in lieu of contributions. Such election is not terminable by the organization for that and the next year. e. The bureau 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 December 31, 1969. f. The bureau, in accordance with such regulations as it may prescribe, shall notify each nonprofit organization of any determination which it may make of its status as an employer and of the effective date of any election which it makes and of any termination of such election. Such determinations are subject to reconsideration, appeal, and review in accordance with administrative regulations of the bureau established for appeals from determinations on claims for benefits and thereafter the decision of the bureau is subject to judicial review as provided for in chapter 52-06. 2. Reimbursement payments. Payments in lieu of contributions must be made in accordance with the provisions of this subsection 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 bureau, the bureau shall bill each nonprofit organization, or group of such organizations, which 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 such quarter or other prescribed period that is attributable to service in the employ of such organization. b. An alternative method for reimbursement payments may be as follows: (1) Each nonprofit organization that has elected payments in lieu of contributions may request permission to make such payments as hereinafter provided. Such method of payment becomes effective upon approval by the bureau. (2) At the end of each calendar quarter, the bureau shall bill each nonprofit organization for an amount representing one of the following: (a) For 1972, two-tenths of one percent of its total payroll for 1971. (b) For years after 1972, such percentage of its total payroll for the immediately preceding calendar year as the bureau shall determine. Such determination must be based each year on the average benefit costs attributable to service in the employ of nonprofit organizations during the preceding calendar year. (c) For any organization which did not pay wages throughout the four calendar quarters of the preceding calendar year, such percentage of its payroll during such year as the bureau shall determine. (3) At the end of each taxable year, the bureau may modify the quarterly percentage of payroll thereafter payable by the nonprofit organization in order to minimize excess or insufficient payments. (4) At the end of each taxable year, the bureau shall determine whether the total of payments for such 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 such taxable year based on wages attributable to service in the employ of such organization. Each nonprofit organization whose total payments for such year are less than the amount so determined is liable for payment of the unpaid balance to the fund in accordance with subdivision c. If the total payments exceed
the amount so determined for the taxable year, all or a part of the excess may, at the discretion of the bureau, be refunded from the fund or retained in the fund as part of the payments which may be required for the next taxable year. c. Payment of any bill rendered under subdivision a or b must be made not later than thirty days after such bill was mailed to the last-known address of the nonprofit organization or was otherwise delivered to it, unless there has been an application for review in accordance with subdivision e. d. Payments made by any nonprofit organization under the provisions of this subsection shall not be deducted or deductible, in whole or in part, from the remuneration of individuals in the employ of the organization. e. The amount due specified in any bill from the bureau is conclusive on the organization unless, not later than fifteen days after the bill was mailed to the last-known address or otherwise delivered to it, the organization files an appeal with the bureau setting forth the grounds for such appeal. Proceedings on appeal to the bureau from the amount of a bill rendered under this subsection must be in accordance with administrative regulations of the bureau and thereafter the decision of the bureau is subject to judicial review as provided for in chapter 52-06. f. Past-due payments of amounts in lieu of contributions are subject to the same interest, delinquency fee, and penalties that, pursuant to this chapter apply to past-due contributions. 3. Authority to terminate elections. If any nonprofit organization is delinquent in making payments in lieu of contributions as required under subsection 2, the bureau may terminate such organization's election to make payments in lieu of contributions as of the beginning of the next taxable year, and such termination is effective for that and the next taxable year. 4. Allocation of benefit costs. Each employer that is liable for payments in lieu of contributions shall pay to the bureau for the 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 such employer. If benefits paid to an individual are based on wages paid by more than one employer and one or more of such employers are liable for payments in lieu of contributions, the amount payable to the fund by each employer that is liable for such payments must be determined in accordance with the provisions of subdivision a or b. a. Proportionate allocation, when fewer than all base-period employers are liable for reimbursement. If benefits paid to an individual are based on wages paid by one or more employers that are liable for payments in lieu of contributions and on wages paid by one or more employers who are liable for contributions, the amount of benefits payable by each employer that is liable for payments in lieu of contributions must be an amount which bears the same ratio to the total benefits paid to the individual as the total base-period wages paid to the individual by such employer bear to the total base-period wages paid to the individual by all of the individual's base-period employers. b. Proportionate allocation, when all base-period employers are liable for reimbursement. If benefits paid to an individual are based on wages paid by two or more employers that are liable for payments in lieu of contributions, the amount of benefits payable by each such employer must be an amount which bears the same ratio to the total benefits paid to the individual as the total base-period wages paid to the individual by such employer bear to the total base-period wages paid to the individual by all of the individual's base-period employers. 5. Notwithstanding any provisions in this section, any nonprofit organization that prior to January 1, 1969, paid contributions required by this chapter, and elects, within thirty days after July 1, 1971, to make payments in lieu of contributions, may not be required to make any such payment on account of any regular or extended benefits paid, on the
basis of wages paid by such organization to individuals for weeks of unemployment which begin on or after the effective date of such election until the total amount of such benefits equals the amount of the positive balance in the experience rating account of such organization.
52-04-19. Financing benefits paid to employees of the state hospitals or state institutions of higher education. Benefits paid to employees based on service attributable to employment in state hospitals or of state institutions of higher education must be financed in accordance with the provisions of this section. For the purpose of this section and subdivision h of subsection 15 of section 52-01-01, an institution of higher education means an educational institution defined in subsection 27 of section 52-01-01, and a state hospital means an institution defined in subsection 25 of section 52-01-01. An employing unit which, pursuant to subdivision h of subsection 15 of section 52-01-01, is, or becomes, subject to the North Dakota unemployment compensation law on or after January 1, 1972, shall pay contributions under the provisions of this chapter, unless it elects as hereafter provided to pay to the bureau for the unemployment fund an amount equal to the amount of regular benefits and the extended benefits paid, that is attributable to service in the employ of such state hospital or such state institution of higher education, to individuals for weeks of unemployment which begin during the effective period of such election. Payments in lieu of contributions must be made at the end of each calendar quarter or at the end of any other period determined by the bureau. Election and changes in the method of financing must be in the same manner provided for in section 52-04-18.
52-04-19.1. Financing benefits paid to employees of the state of North Dakota and governmental entities within the state of North Dakota. 1. Benefits paid to employees of the state of North Dakota, its departments and instrumentalities, or any instrumentality of more than one of the foregoing, or an instrumentality of the foregoing and one or more other states, which are attributable to employment by an employing unit which, after December 31, 1977, is defined as an employer, must be financed by one of the following methods: a. By payment of contributions as provided under section 52-04-06, plus one-half the cost of the extended benefits paid that are attributable to wages paid by an employer. b. By payment in lieu of contributions each quarter for the calendar years 1978 and 1979 in an amount equal to one percent of their total quarterly payroll, and the rate of contributions to be paid for each two-year period after 1979 must be as determined by the bureau each January by computing the cost of benefits paid under chapters 52-06 and 52-07.1 which are attributable to wages paid by employers, and the bureau may modify such rate in order to minimize excess or insufficient payments in any prior periods. c. In lieu of contributions an employer may elect to pay to the bureau for the unemployment fund an amount equal to the amount of benefits paid under chapters 52-06 and 52-07.1 which are attributable to wages paid in the employ of such governmental employer, to individuals for weeks of unemployment. 2. Benefits paid to employees of political subdivisions, other than state government, its departments and instrumentalities, or any instrumentality of more than one of the foregoing which are attributable to employment by an employing unit which, after December 31, 1977, is defined as an employer, must be financed by one of the following methods: a. By payment of contributions as provided under section 52-04-06 plus one-half the cost of the extended benefits paid that are attributable to wages paid by an employer. b. By payment in lieu of contributions each quarter for the calendar year 1978 in an amount equal to one percent of their total quarterly payroll, and the rate of contribution to be paid quarterly each year after 1978 must be determined by the bureau each January by computing the cost of benefits paid under chapters
52-06 and 52-07.1 which are attributable to wages paid by employers, and the bureau may modify such rate in order to minimize excess or insufficient payments in any prior periods. c. In lieu of contributions an employer may elect to pay to the bureau for the unemployment fund an amount equal to the amount of benefits paid under chapters 52-06 and 52-07.1 which are attributable to wages paid in the employ of such governmental employer, to individuals for weeks of unemployment. 3. Employers under this section shall notify the bureau of the plan selected for financing benefits within sixty days of becoming an employer. In the event of an unexcused failure of an employer to notify the bureau of the plan selected for financing benefits, the bureau shall assess that employer the rate of contributions provided for in section 52-04-06 plus one-half the cost of the extended benefits paid that are attributable to wages paid by that employer. 4. Elections and changes in the method of financing provided for in section 52-04-18 are applicable to employers under this section. 5. Any two or more employers under this section may file a joint application for the establishment of a group for the purpose of wage reporting and financing as regulations may prescribe. 6. Past-due payments under this section are subject to the same interest and penalties that apply to past-due contributions in section 52-04-11.