Employer's contribution rate, how determined
Each year, Missouri looks at how much money an employer has in their unemployment tax account. That balance decides what percentage the employer pays into unemployment the next year. Employers who stay at the highest tax rate for two or more years in a row get extra fees added on top, but those extra fees can never add up to more than one and a half percent total. If a business owner bought a company and was charged the wrong tax rate because of it, there was a 60-day window starting October 16, 2015 to ask for money back for up to the last five years.
*288.120. Employer's , how determined — , how computed — for employers at the maximum rate — overpayments, time limit for . — 1. On each June thirtieth, or within a reasonable time thereafter as may be by , the balance of an employer's , except an employer participating in a shared work plan under section 288.500, shall determine his contribution rate for the following as determined by the following table:
2. Using the same mathematical principles used in constructing the table provided in 1 of this section, the following table has been constructed. The contribution rate for the following calendar year of any employer participating in a shared work plan under section 288.500 during the current calendar year or any calendar year during a prior three-year period shall be determined from the balance in such employer's experience rating account as of the previous June thirtieth, or within a reasonable time thereafter as may be fixed by regulation, from the following table:
3. the of subsection 2 of section 288.090, any employer participating in a shared work plan under section 288.500 who has not had at least twelve months immediately preceding the throughout which his account could have been shall have a contribution rate equal to the highest contribution rate in the table in subsection 2 of this section, until such time as his account has been for the period of time sufficient to enable him to qualify for a computed rate on the same basis as other employers participating in shared work plans.
4. Employers who have been taxed at the maximum rate this section for two years shall have a of one-quarter percent added to their contribution rate calculated pursuant to this section. In the event that an employer remains at the maximum rate pursuant to this section for a third or subsequent year, an additional surcharge of one-quarter percent shall be annually assessed, but in no case shall the surcharge in this subsection cumulatively exceed one percent. Additionally, if an employer continues to remain at the maximum rate pursuant to this section an additional surcharge of one-half percent shall be assessed. In no case shall the total surcharge assessed to any employer exceed one and one-half percent in any given year.
5. For a period of sixty days beginning ** October 16, 2015, an employer who reasonably believes that he or she has been an as a result of the purchase of a company shall have the right to file a for recovery of overpayments for the last five years due to such erroneous .
Tap any gold-underlined word to see what it means.
Red section numbers link to that law.
Source & history notes
(L. 1972 H.B. 1017, A.L. 1979 S.B. 477, A.L. 1984 H.B. 1251 & 1549, A.L. 1987 S.B. 153, A.L. 2004 H.B. 1268 & 1211, A.L. 2006 H.B. 1456, A.L. 2015 H.B. 150) *Effective 10-16-15, see § 21.250. H.B. 150 was vetoed on May 5, 2015. The veto was overridden by the House on May 12, 2015, and by the Senate on September 16, 2015. *Revisor's Note: This section was declared unconstitutional in Pestka et al. v. State, see 2016 annotation below. **Word "with" appears in original rolls. (2016) Only bills returned by the Governor on or after the fifth day before the end of the regular legislative session can be taken up during September veto session, thus Senate veto session vote to override the Governor's veto of HB 150 was untimely. Pestka et al. v. State, No. SC95369 (Mo.).
Legal information, not legal advice. Always confirm with the official source at revisor.mo.gov.