In this subtitle the following words have the meanings indicated.
“Election” means an election to make reimbursement payments instead of paying contributions in accordance with Part III of this subtitle.
“Predecessor employer” means an employer that sells or otherwise transfers all or part of its assets, business, organization, or trade to another employer.
“Reimbursement payment” means a payment that an employing unit makes under an election to reimburse the Unemployment Insurance Fund for benefits paid.
“Taxable wage base” means the amount of wages under § 8-607 of this subtitle for which an employing unit pays contributions.
On the Secretary’s own initiative or on application of an employer, the Secretary shall, on the basis of facts that the Secretary finds, determine:
whether the employer is an employing unit;
which employment is covered;
the contribution rate to be assigned;
benefits charged to an employer; and
the status of the employer under § 8–613 of this subtitle, including whether the employer is a reorganized employer, a predecessor employer, or a successor employer; and
whether the employer has violated § 8–614 of this subtitle.
The Secretary shall send notice of the determination under subsection (a) of this section to the employer at its last known address or otherwise deliver notice to the employer.
The notice shall:
include a statement of the supporting facts found by the Secretary;
advise the employer of the employer’s right to request a review determination as provided under § 8–604 of this subtitle; and
advise the employer that the determination is final and not subject to appeal if the employer does not request a review determination in accordance with § 8–604 of this subtitle.
An employer may appeal a determination of the Secretary to the Board of Appeals within 15 days after the Secretary mailed or otherwise delivered the notice under subsection (b) of this section.
The Board of Appeals shall allow the appeal.
The Secretary shall be a party to the appeal.
The Board of Appeals shall give the parties a reasonable opportunity for a fair hearing as provided under Subtitle 5A of this title.
Except in the case of fraud or a period for which a report under § 8–626 of this subtitle was not filed, a determination made under subsection (a) of this section shall be sent to the employer within 3 years of the last day for the period at issue in the determination.
Each employer shall keep posted in places readily accessible to its employees printed statements that are provided without cost to the employer by the Secretary about:
the right to benefits;
claims for benefits;
the right of some employees to continuation of health insurance coverage under § 15-407 of the Insurance Article; and
any other matter relating to administration of this title that the Secretary requires by regulation.
In accordance with regulations that the Secretary adopts, each employing unit shall supply to its employees copies of printed statements or other material relating to claims for benefits provided to the employing unit without cost by the Secretary.
In this section, “employer” includes any employer, employing unit, governmental entity, or nonprofit organization entitled to notice of a determination under this subtitle.
This subsection applies to any determination under this subtitle for which the right to request a review determination is available.
An employer may request a review determination within 30 days after the date the Secretary’s determination was sent to the employer.
The request for a review determination shall state the reasons the employer disagrees with the Secretary’s determination.
Except as provided in subparagraph (ii) of this paragraph, if an employer does not make a timely request for a review determination, the previously issued determination of the Secretary is final and not subject to appeal.
If an employer makes a late request for a review determination, the Secretary may, in the Secretary’s discretion, accept the request for a review determination as if the request had been made timely.
The review determination shall be conducted in accordance with procedures established by the Secretary.
The Secretary may adopt regulations establishing procedures for conducting a review determination.
After conducting a review determination, the Secretary shall issue a review determination decision and send it to the employer.
The review determination decision:
shall include a statement of the facts on which the decision is based;
may accept, reconsider, or amend the Secretary’s initial determination; and
may be appealed to the Lower Appeals Division in accordance with § 8–605 of this subtitle.
If the Secretary has not issued a review determination decision within 60 days after the date the review determination request was sent, the employer may request, in writing, that the Secretary adopt the previously issued determination as a final determination, which may be appealed to the Lower Appeals Division in accordance with § 8–605 of this subtitle.
On receipt of a request under paragraph (1) of this subsection, the Secretary shall issue and send to the employer a notice:
adopting the Secretary’s previously issued determination as a review determination decision; and
advising the employer of the right to file an appeal to the Lower Appeals Division in accordance with § 8–605 of this subtitle.
An employer may appeal a review determination decision issued under § 8–604 of this subtitle to the Lower Appeals Division within 30 days after the Secretary sent the review determination decision to the employer.
An appeal under this section shall identify all facts and issues on which the appeal is based.
The Lower Appeals Division shall allow the appeal.
A hearing examiner shall provide the parties with a reasonable opportunity for a fair hearing in accordance with Subtitle 5 of this title.
The hearing examiner’s decision under this section and Subtitle 5 of this title is final if the employer or the Secretary does not file an appeal with the Board of Appeals in accordance with Subtitle 5A of this title within 30 days after the decision is sent to the employer.
In this section the following words have the meanings indicated.
“New employer” has the meaning stated in § 8–609(a) of this subtitle.
“Taxable wage base” has the meaning stated in § 8–601 of this subtitle.
Beginning January 1, 2026, each employing unit that is determined to be liable under this subtitle to pay contributions shall be subject to an annual administrative fee of 0.15% of its taxable wage base.
The timing and manner of payment shall be as determined by the Secretary.
Subject to subparagraph (ii) of this paragraph, beginning January 1, 2026, the contribution rate assigned to each employing unit under this subtitle, exclusive of any penalties, fines, or interest required to be paid by an employing unit under any other provision of this title, shall be adjusted by subtracting 0.15% from each rate.
A new employer shall pay at least 1% of its taxable wage base.
The administrative fee payments collected under this section:
shall be considered separate and distinct from contributions;
may not be credited to the accounts of individual employing units; and
shall be deposited into the Special Administrative Expense Fund established under § 8–419 of this title.
The administrative fees collected under this section may be used for administrative expenses in accordance with § 8–421 of this title, including expenses to improve customer service, conduct data analysis, support information technology improvements, combat fraud, and accelerate reemployment.
The administrative fees collected under this section may not be used for administrative expenses of the Division of Workforce Development and Adult Learning.
The Secretary may adopt regulations necessary to carry out this section.
In this Part II of this subtitle the following words have the meanings indicated.
“Annual payroll” means the total wages for covered employment that an employing unit pays to all employees in a calendar year on which the employing unit is required to pay contributions.
“Base period wages” means wages paid to an individual during the base period, as defined in § 8–101 of this title, of the individual for covered employment.
“Computation date” means the July 1 immediately preceding the calendar year for which a rate of contribution is assigned.
“Rating year” means the 12–month period beginning July 1 and ending June 30 immediately preceding the computation date.
Except as provided in Part III of this subtitle, an employing unit shall pay to the Secretary contributions for the Unemployment Insurance Fund on taxable wages for covered employment that is performed for the employing unit.
Subject to paragraph (2) of this subsection, the taxable wage base is the first $8,500 in wages that:
an employing unit pays to each employee for covered employment during a calendar year;
an employing unit pays to each employee for covered employment in this State and another state during a calendar year if the employee was continuously employed immediately before and after a transfer of a business from another state during a calendar year;
a reorganized employer pays to each employee for covered employment if the employee was continuously employed immediately before and after the reorganization in a calendar year and if the contribution rate of the reorganized employer is based on the experience with payrolls and benefit charges of the employing unit before the reorganization in accordance with § 8–613(b) of this subtitle; or
an employing unit or predecessor employer or combination of both pays to each employee for covered employment during a calendar year if the payrolls and benefit charges of the predecessor employing unit are transferred to the successor employing unit in accordance with § 8–613(d) or (e) of this subtitle.
If the Federal Unemployment Tax Act or any other federal tax law that allows a credit for a contribution to a state unemployment insurance fund increases the maximum amount of wages taxable under that law in a calendar year to more than $8,500, the taxable wage base under paragraph (1) of this subsection shall be the same as under the federal law.
The Secretary shall determine the rate of contribution for each employing unit as of the computation date for the next calendar year.
The rate of contribution is effective for 1 calendar year.
By regulation, the Secretary shall set:
the date when contributions are due; and
subject to § 8–607.1 of this subtitle, the manner in which contributions are to be paid.
In accordance with regulations adopted by the Secretary, an employing unit shall:
submit to the Secretary periodic reports for determination of the amount of contributions due; and
pay the contribution.
For payment of contributions, a fractional part of a cent:
that is less than one–half cent shall be disregarded; and
that is one–half cent or more shall be increased to 1 cent.
Wages paid by a private, for–profit employing unit to an incarcerated individual of a custodial or penal institution before the incarcerated individual is permanently released from the custodial or penal institution, including released by parole, may not constitute taxable wages.
An employing unit may not deduct contributions, wholly or partly, from the wages of an employee.
The Secretary shall:
for any calendar year in which Table F is applicable under § 8–612(d)(6) of this subtitle, offer a variety of payment plan options that spread through the end of August the dates when contributions are due on taxable wages for covered employment of the first 6 months of the calendar year; and
offer a variety of additional payment plan options that:
mutually serve the interest of the Division and individual employing units; and
for plans offered in a calendar year in which Table F is applicable under § 8–612(d)(6) of this subtitle, provide more flexibility for an employing unit than the plans offered under item (1) of this section.
In this subtitle, “standard rate” means the maximum rate in the applicable Table of Rates under § 8-612(d) of this subtitle.
Except as otherwise provided in this subtitle, an employing unit shall pay contributions at the standard rate applied to the taxable wage base.
In this section the following terms have the meanings indicated.
“Employer industry category” means the 6–digit North American Industry Classification System promulgated by the Federal Office of Management and Budget.
“New employer” means an employing unit that does not qualify for an earned rate under § 8–610 of this subtitle.
Subject to § 8–605.1(b) of this subtitle, a new employer shall pay contributions at a rate that does not exceed 2.6% of the taxable wage base, and that is the highest of:
1% of the taxable wage base;
the 5–year benefit cost rate of the State as computed under subsection (c) of this section; or
the contribution rate under § 8–612 of this subtitle that applies to an employing unit with a benefit ratio of 0.000.
Annually, the Secretary shall compute the 5–year benefit cost rate of the State by dividing the sum of regular benefits, work sharing benefits, and 50% of extended benefits that the State paid during the 5 consecutive calendar years immediately preceding the computation date by the total amount of wages that employing units in the State paid during the same period that were subject to contributions.
In this subsection, “foreign contractor” means a person:
who, for a commission or fixed price bids on, accepts, or offers to accept orders or contracts for performing or superintending construction, removal, repair, or improvement of any building or structure that is permanently annexed to real property that is owned, controlled, or leased by another person; and
all or a majority part of whose primary operations traditionally have been and continue to be based or headquartered in another state and are not controlled or directed from this State.
The contribution rate for a new employer who is a foreign contractor shall be the average of the rates for employers in the State in the same employer industry category as the foreign contractor, except that the rate may not be lower than the new employer rate in effect for that year.
An employing unit that meets the qualifications of this subsection shall be assigned an earned rate of contribution that is based on the experience of the employing unit.
An employing unit qualifies under this subsection if, during each of the 3 rating years immediately preceding the computation date the employing unit:
had an earned rating record that was chargeable with benefits; and
reports taxable wages as required by § 8–626 of this subtitle for the 3 rating years immediately preceding the computation date.
An employing unit that does not qualify under paragraph (2) of this subsection qualifies if:
throughout the rating year immediately preceding the computation date, the employing unit had an earned rating record that was chargeable with benefits; and
during each of the 2 rating years immediately preceding the computation date, the employing unit reports taxable wages as required by § 8–626 of this subtitle for the 2 rating years immediately preceding the computation date.
An employing unit that transfers an operation from another state to this State qualifies for an earned rate of contribution effective on the transfer if:
the employing unit had the experience with benefit charges and payrolls in the other state that subsection (a)(2) of this section requires an employing unit to have in this State; and
the employing unit submits to the Secretary an application that includes the information that is needed to determine the benefit ratio of the employing unit as if the benefit charges and payrolls in the other state had been paid in this State.
The Secretary shall determine the accuracy of the information in the application.
If an employing unit has met each of the requirements to qualify for an earned rate but files no contribution reports for any of the 3 rating years immediately preceding the computation date as required by § 8–626 of this subtitle, the Secretary shall assign the employing unit the standard rate of contribution.
On termination of an election, a nonprofit organization or a governmental entity is presumed:
to have reported wages in each calendar year during the election in which the employing unit actually paid individuals for services; and
to have been chargeable with benefits during any period when it was subject to this title under an election.
The basis for calculating an earned rating record shall be money paid for services and benefits paid.
An employing unit that has knowingly failed to properly classify an individual as an employee under § 8–201.1 of this title shall pay contributions for 2 years:
at a rate applied to the taxable wage base that would have been assigned to the employing unit under this subtitle if the employing unit had not knowingly failed to properly classify an individual as an employee; plus
two percentage points.
For each employing unit, the Secretary shall keep an earned rating record that shows all benefits that are based on covered employment that was performed for the employing unit.
Except as provided in subsection (d) of this section, the Secretary shall charge pro rata against the earned rating record of each base period employer all regular benefits and the share of extended benefits required under subsection (c) of this section in the same proportion as the wages paid by the base period employer is to the total wages of the claimant during the base period, and rounded to the nearest dollar.
Notwithstanding any other provision of this title, the Secretary may not charge against the earned rating record of an employing unit an extended benefit payment for which the State receives full reimbursement from the federal government.
Except as provided in subsection (d) of this section, the appropriate share of extended benefits:
for a governmental entity, is all extended benefits paid to a claimant; and
for other employing units, is 50% of extended benefits paid to a claimant.
The Secretary shall charge all regular and extended benefits paid to a claimant against the earned rating record of an employing unit that caused the claimant’s unemployment during any period in which the unemployment is caused by a shutdown of the employing unit:
to have employees take their vacations at the same time;
for inventory;
for retooling; or
for any other purpose that is primarily other than a lack of work and that causes unemployment for a definite period.
The Secretary may not charge benefits paid to a claimant against the earned rating record of an employing unit if:
the claimant left employment voluntarily without good cause attributable to the employing unit;
the claimant was discharged by the employing unit for gross misconduct as defined in § 8–1002 of this title;
the claimant was discharged by the employing unit for aggravated misconduct as defined in § 8–1002.1 of this title;
the claimant left employment voluntarily to accept better employment or enter training approved by the Secretary;
the employing unit participates in a work release program that is designed to give an incarcerated individual of a correctional institution an opportunity to work while imprisoned and unemployment was the result of the claimant’s release from prison;
the claimant was paid additional training benefits under § 8–812 of this title; or
the claimant left employment for good cause directly attributable to the claimant or the claimant’s spouse, minor child, or parent being a victim of domestic violence as defined in § 8–1001(b)(3) of this title.
Except as provided in paragraph (2) of this subsection, if the Secretary determines before the first day of the calendar year for which the rate is assigned, that benefits that have been charged against the earned rating record of an employing unit are recoverable under § 8–809 of this title, the Secretary shall remove those charges from the earned rating record before computation of the earned rate.
The Secretary may not remove a benefit charge from an earned rating record if:
the benefit was paid as a direct or indirect result of the failure of the employing unit, or the employing unit’s agent, to provide timely or adequate information relating to a claim for benefits in response to a request for information made by the Secretary under this title or regulations adopted to carry out this title; and
the employing unit, or the employing unit’s agent, has not shown good cause for failing to provide timely or adequate information.
In determining whether the Secretary is prohibited from removing a benefit charge under subparagraph (i) of this paragraph:
an employing unit, or the employing unit’s agent, must raise the issue of good cause in writing for the issue to be considered; and
the employing unit, or the employing unit’s agent, has the burden of proving there was good cause for failing to provide timely or adequate information.
The Secretary may not charge the earned rating record of an employing unit that has employed a claimant on a continuous part–time basis and continues to do so while the claimant is separated from other employment and is eligible for benefits because of that separation.
The Secretary may not charge the earned rating record of an employing unit for benefits that are paid to a claimant during a period in which the claimant is disqualified as a result of a reversal or redetermination.
If, as a direct or indirect result of an erroneous report of wages or other information by an employing unit, benefits are paid to a claimant who is not entitled to the benefits, the Secretary shall charge the benefits against the earned rating record of the employing unit responsible for the erroneous report.
Notwithstanding paragraph (1) of this subsection, on request of an employing unit, the Secretary for cause may waive a charge to the employing unit earned rating record that results from erroneous report by the employing unit.
If the Secretary allows an adjustment or refund under this title, the Secretary shall correct the employing unit’s earned rating record.
The Secretary may not change an earned rate assigned to an employing unit as a result of an adjustment or refund unless under this title the application is submitted by the December 31 preceding the calendar year for which the rate is assigned.
The Secretary shall waive the December 31 deadline for good cause.
Subject to paragraph (3) of this subsection, the Secretary may waive the charge of benefits paid to a claimant against the earned rating record of an employing unit if:
the benefits are paid to the claimant during a period in which the claimant is temporarily unemployed because the employing unit shut down due to a natural disaster; and
the Governor declared a state of emergency due to the natural disaster.
If the Secretary waives the charge of benefits under paragraph (1) of this subsection, the waiver may be in effect only until the earlier of:
4 months after the natural disaster; or
the date the employing unit reopens.
The Secretary shall waive the charge of benefits paid to a claimant against the earned rating record of an employing unit for any claim of benefits if:
the claim is determined by the Secretary to be related to the reduced operations of the Port of Baltimore due to the collapse of the Francis Scott Key Bridge; and
the employing unit had no direct or indirect control over the actions leading to the disruption in employment.
Subject to paragraph (2) of this subsection, on the basis of the earned rating record of an employing unit that qualifies for an earned rate of contribution under § 8–610 of this subtitle, the Secretary shall compute to the 4th decimal place a benefit ratio for the employing unit in accordance with subsection (b) or (c) of this section.
Subject to § 8–605.1(b) of this subtitle, the Secretary may not assign an earned rate of contribution that is less than 0.3% or more than 13.5%.
For an employing unit that qualifies under § 8–610(a)(2) of this subtitle, the Secretary shall compute a benefit ratio by:
adding the regular, work sharing, and extended benefits that were chargeable to the earned rating record of the employing unit and paid during the 3 rating years immediately preceding the computation date; and
dividing the figure determined under item (1) of this subsection by the total of the reported taxable wages for the same period.
For an employing unit that qualifies under § 8–610(a)(3) of this subtitle, the Secretary shall compute a benefit ratio for the employing unit by:
adding the regular, work sharing, and extended benefits that were chargeable to the earned rating record of the employing unit and paid during the period beginning with the 1st day of the calendar quarter in which the employing unit first became subject to this title and ending on the June 30 immediately preceding the computation date; and
dividing the figure obtained under item (1) of this subsection by the total of the reported taxable wages for the same period.
Except as provided in subsection (f) of this section, for any calendar year beginning on or after January 1, 2006, when the Unemployment Insurance Fund balance on September 30 of the immediately preceding calendar year exceeds 5% of the total taxable wages in covered employment for the 4 completed calendar quarters immediately preceding September 30, the Table of Rates in this paragraph of this subsection shall apply.
Table of Rates – Table A
Employing Employing
Unit’s Benefit Unit’s
Ratio Rate
.0000�––����������…...…………....……………………………….………… 0.30%
.0001�––�.0027.…………………………………………………………… 0.60%
.0028�––�.0054……………………………………………….…………… 0.90%
.0055�––�.0081………………………………………………….………… 1.20%
.0082�––�.0108……………………………………………….…………… 1.50%
.0109�––�.0135.…………………………………………………………… 1.80%
.0136�––�.0162.…………………………………………………………… 2.10%
.0163�––�.0189……………………………………………………………. 2.40%
.0190�––�.0216………………………………………………………….… 2.70%
.0217�––�.0243………………………………………………….………… 3.00%
.0244�––�.0270………………………………………………………….… 3.30%
.0271�––�.0297……………………………………………………….…… 3.60%
.0298�––�.0324……………………………………………………….…… 3.90%
.0325�––�.0351……………………………………………………….…… 4.20%
.0352�––�.0378……………………………………………………….…… 4.50%
.0379�––�.0405……………………………………………………….…… 4.80%
.0406�––�.0432……………………………………………………….…… 5.10%
.0433�––�.0459……………………………………………………….…… 5.40%
.0460�––�.0486……………………………………………………….…… 5.70%
.0487�––�.0513……………………………………………………….…… 6.00%
.0514�––�.0540……………………………………………………….…… 6.30%
.0541�––�.0567……………………………………………………….…… 6.60%
.0568�––�.0594……………………………………………………….…… 6.90%
.0595�––�.0621……………………………………………………….…… 7.20%
.0622�––�and over……………………………………………………...… 7.50%
Except as provided in subsection (f) of this section, for any calendar year beginning on or after January 1, 2006, when the Unemployment Insurance Fund balance on September 30 of the immediately preceding calendar year exceeds 4.5%, but is not in excess of 5% of the total taxable wages in covered employment for the 4 completed calendar quarters immediately preceding September 30, the Table of Rates in this paragraph of this subsection shall apply.
Table of Rates – Table B
Employing Employing
Unit’s Benefit Unit’s
Ratio Rate
.0000�––����������…………………….……………………………………… 0.60%
.0001�––�.0027…………………………….……………………………… 0.90%
.0028�––�.0054………………………….………………………………… 1.20%
.0055�––�.0081…………………………….……………………………… 1.50%
.0082�––�.0108…………………………………….……………………… 1.80%
.0109�––�.0135……………………………………….…………………… 2.10%
.0136�––�.0162……………………………………….…………………… 2.40%
.0163�––�.0189…………………………………………………….……… 2.70%
.0190�––�.0216…………………………………………………….……… 3.00%
.0217�––�.0243………………………………………………….………… 3.30%
.0244�––�.0270………………………………………………….………… 3.60%
.0271�––�.0297……………………………………………………….…… 3.90%
.0298�––�.0324……………………………………………………….…… 4.20%
.0325�––�.0351…………………………………………………….……… 4.50%
.0352�––�.0378……………………………………………………….…… 4.80%
.0379�––�.0405……………………………………………………….…… 5.10%
.0406�––�.0432…………………………………………………….……… 5.40%
.0433�––�.0459…………………………………………………….……… 5.70%
.0460�––�.0486…………………………………………………….……… 6.00%
.0487�––�.0513…………………………………………………….……… 6.30%
.0514�––�.0540………………………………………………….………… 6.60%
.0541�––�.0567 …………………………………………………………… 6.90%
.0568�––�.0594…………………………………………………….……… 7.20%
.0595�––�.0621………………………………………………….………… 7.50%
.0622�––�.0648……………………………………………………….…… 7.80%
.0649�––�.0675……………………………………………….…………… 8.10%
.0676�––�.0702……………………………………………….…………… 8.40%
.0703�––�.0729………………………………………………….………… 8.70%
.0730�––�and over……………………………………………...………… 9.00%
Except as provided in subsection (f) of this section, for any calendar year beginning on or after January 1, 2006, when the Unemployment Insurance Fund balance on September 30 of the immediately preceding calendar year exceeds 4%, but is not in excess of 4.5% of the total taxable wages in covered employment for the 4 completed calendar quarters immediately preceding September 30, the Table of Rates in this paragraph of this subsection shall apply.
Table of Rates – Table C
Employing Employing
Unit’s Benefit Unit’s
Ratio Rate
.0000�––����������…………………………………………………….……… 1.00%
.0001�––�.0027………………………………………………….………… 1.50%
.0028�––�.0054………………………………………………….………… 1.80%
.0055�––�.0081………………………………………………….………… 2.10%
.0082�––�.0108………………………………………………….………… 2.40%
.0109�––�.0135………………………………………………….………… 2.70%
.0136�––�.0162………………………………………………….………… 3.00%
.0163�––�.0189………………………………………………….………… 3.30%
.0190�––�.0216………………………………………………….………… 3.60%
.0217�––�.0243………………………………………………….………… 3.90%
.0244�––�.0270………………………………………………….………… 4.20%
.0271�––�.0297………………………………………………….………… 4.50%
.0298�––�.0324…………………………………………………….……… 4.80%
.0325�––�.0351………………………………………………………….… 5.10%
.0352�––�.0378……………………………………………………….…… 5.40%
.0379�––�.0405………………………………………………….………… 5.70%
.0406�––�.0432…………………………………………………….……… 6.00%
.0433�––�.0459………………………………………………….………… 6.30%
.0460�––�.0486………………………………………………………….… 6.60%
.0487�––�.0513……………………………………………………….…… 6.90%
.0514�––�.0540……………………………………………………….…… 7.20%
.0541�––�.0567……………………………………………………….…… 7.50%
.0568�––�.0594………………………………………………………….… 7.80%
.0595�––�.0621………………………………………………………….… 8.10%
.0622�––�.0648……………………………………………………….…… 8.40%
.0649�––�.0675……………………………………………………….…… 8.70%
.0676�––�.0702………………………………………………………….… 9.00%
.0703�––�.0729……………………….…………………………………… 9.30%
.0730�––�.0756………………………….………………………………… 9.60%
.0757�––�.0783……………………………………………….…………… 9.90%
.0784�––�.0810………………………………………………………….. 10.20%
.0811�––�and over…………………………………………….………… 10.50%
Except as provided in subsection (f) of this section, for any calendar year beginning on or after January 1, 2006, when the Unemployment Insurance Fund balance on September 30 of the immediately preceding calendar year exceeds 3.5%, but is not in excess of 4% of the total taxable wages in covered employment for the 4 completed calendar quarters immediately preceding September 30, the Table of Rates in this paragraph of this subsection shall apply.
Table of Rates – Table D
Employing Employing
Unit’s Benefit Unit’s
Ratio Rate
.0000�––����������……………….…………………………………………… 1.40%
.0001�––�.0027…………………………………………….……………… 2.10%
.0028�––�.0054…………………………………………….……………… 2.40%
.0055�––�.0081………………………………………………………….… 2.70%
.0082�––�.0108…………….……………………………………………… 3.00%
.0109�––�.0135……………………………………………………….…… 3.30%
.0136�––�.0162……………………………………………………….…… 3.60%
.0163�––�.0189……………………………………………………….…… 3.90%
.0190�––�.0216……………………………………………….…………… 4.20%
.0217�––�.0243……………………………………………….…………… 4.50%
.0244�––�.0270……………………………………………….…………… 4.80%
.0271�––�.0297……………………………………………….…………… 5.10%
.0298�––�.0324…………………………………………………….……… 5.40%
.0325�––�.0351………………………………………………….………… 5.70%
.0352�––�.0378……………………………………………….…………… 6.00%
.0379�––�.0405……………………………………………….…………… 6.30%
.0406�––�.0432…………………………………………….……………… 6.60%
.0433�––�.0459………………………………………………….………… 6.90%
.0460�––�.0486……………………………………………….…………… 7.20%
.0487�––�.0513……………………………………………….…………… 7.50%
.0514�––�.0540…………………………………………………….……… 7.80%
.0541�––�.0567………………………………………………….………… 8.10%
.0568�––�.0594………………………………………………….………… 8.40%
.0595�––�.0621……………………………………………….…………… 8.70%
.0622�––�.0648…………………………………………………….……… 9.00%
.0649�––�.0675…………………………………………………….……… 9.30%
.0676�––�.0702…………………………………………………….……… 9.60%
.0703�––�.0729……………………………………………………….…… 9.90%
.0730�––�.0756..………………………………………………………… 10.20%
.0757�––�.0783…………………………………………..……………… 10.50%
.0784�––�.0810……………………………………………..…………… 10.80%
.0811�––�.0837……………………………………………..…………… 11.10%
.0838�––�.0864…………………………………………………..……… 11.40%
.0865�––�.0891……………………………………………………..…… 11.70%
.0892�––�and over………………………………………………….…… 11.80%
Except as provided in subsection (f) of this section, for any calendar year beginning on or after January 1, 2006, when the Unemployment Insurance Fund balance on September 30 of the immediately preceding calendar year exceeds 3%, but is not in excess of 3.5% of the total taxable wages in covered employment for the 4 completed calendar quarters immediately preceding September 30, the Table of Rates in this paragraph of this subsection shall apply.
Table of Rates – Table E
Employing Employing
Unit’s Benefit Unit’s
Ratio Rate
.0000�––�����������…………………………………………………………… 1.80%
.0001�––�.0027……………………………………………………….…… 2.60%
.0028�––�.0054……………………………………………………….…… 2.90%
.0055�––�.0081……………………………………………………….…… 3.20%
.0082�––�.0108……………………………………………………….…… 3.50%
.0109�––�.0135……………………………………………………….…… 3.80%
.0136�––�.0162………………………………………………….………… 4.10%
.0163�––�.0189………………………………………………….………… 4.40%
.0190�––�.0216………………………………………………….………… 4.70%
.0217�––�.0243………………………………………………….………… 5.00%
.0244�––�.0270………………………………………………….………… 5.30%
.0271�––�.0297………………………………………………….………… 5.60%
.0298�––�.0324………………………………………………….………… 5.90%
.0325�––�.0351………………………………………………….………… 6.20%
.0352�––�.0378……………………………………………………….…… 6.50%
.0379�––�.0405………………………………………………….………… 6.80%
.0406�––�.0432………………………………………………….………… 7.10%
.0433�––�.0459……………………………………………………….…… 7.40%
.0460�––�.0486………………………………………………….………… 7.70%
.0487�––�.0513………………………………………………….………… 8.00%
.0514�––�.0540………………………………………………….………… 8.30%
.0541�––�.0567………………………………………………….………… 8.60%
.0568�––�.0594…………………………………………………….……… 8.90%
.0595�––�.0621…………………………………………………….……… 9.20%
.0622�––�.0648……………………………………………………….…… 9.50%
.0649�––�.0675……………………………………….…………………… 9.80%
.0676�––�.0702…………………………………………..……………… 10.10%
.0703�––�.0729……………………………………………..…………… 10.40%
.0730�––�.0756………………………………………………..………… 10.70%
.0757�––�.0783…………………………………………………..……… 11.00%
.0784�––�.0810…………………………………………………..……… 11.30%
.0811�––�.0837…………………………………………………..……… 11.60%
.0838�––�.0864…………………………………………………..……… 11.90%
.0865�––�.0891………………………………………………………..… 12.20%
.0892�––�.0918………………………………………………………..… 12.50%
.0919�––�.0945………………………………………………………..… 12.80%
.0946�––�and over………………………………………………….…… 12.90%
Except as provided in subsection (f) of this section, for any calendar year beginning on or after January 1, 2006, when the Unemployment Insurance Fund balance on September 30 of the immediately preceding calendar year is not in excess of 3% of the total taxable wages in covered employment for the 4 completed calendar quarters immediately preceding September 30, the Table of Rates in this paragraph of this subsection shall apply.
Table of Rates – Table F
Employing Employing
Unit’s Benefit Unit’s
Ratio Rate
.0000�––����������………….………………………………………………… 2.20%
.0001�––�.0027……………………………………………………….……3.10%
.0028�––�.0054……………………………………………………….…… 3.40%
.0055�––�.0081……………………………………………………….…… 3.70%
.0082�––�.0108………………………………………………………….… 4.00%
.0109�––�.0135……………………………………………………….…… 4.30%
.0136�––�.0162……………………………………………………….…… 4.60%
.0163�––�.0189………………………………………………………….… 4.90%
.0190�––�.0216……………………………………………………….…… 5.20%
.0217�––�.0243……………………………………………………….…… 5.50%
.0244�––�.0270……………………………………………………….…… 5.80%
.0271�––�.0297……………………………………………………….…… 6.10%
.0298�––�.0324……………………………………………………….…… 6.40%
.0325�––�.0351………………………………………………………….… 6.70%
.0352�––�.0378……………………………………………………….…… 7.00%
.0379�––�.0405……………………………………………………….…… 7.30%
.0406�––�.0432……………………………………………………….…… 7.60%
.0433�––�.0459……………………………………………………….…… 7.90%
.0460�––�.0486……………………………………………………….…… 8.20%
.0487�––�.0513……………………………………………………….…… 8.50%
.0514�––�.0540…………………………………………………….……… 8.80%
.0541�––�.0567……………………………….…………………………… 9.10%
.0568�––�.0594……………………………………….…………………… 9.40%
.0595�––�.0621………………………………………….………………… 9.70%
.0622�––�.0648…………………………………………..……………… 10.00%
.0649�––�.0675…………………………………………………..……… 10.30%
.0676�––�.0702…………………………………………………..……… 10.60%
.0703�––�.0729……………………………………………………..…… 10.90%
.0730�––�.0756……………………………………………………..…… 11.20%
.0757�––�.0783……………………………………………………..…… 11.50%
.0784�––�.0810………………………………………………………..… 11.80%
.0811�––�.0837……………………………………………………..…… 12.10%
.0838�––�.0864……………………………………………………..…… 12.40%
.0865�––�.0891……………………………………………………..…… 12.70%
.0892�––�.0918……………………………………………………..…… 13.00%
.0919�––�.0945………………………………………………………..… 13.30%
.0946�––�and over…………………………………………………….… 13.50%
For the purpose of making any computation under this section:
money that has been credited to the account of the State in the Unemployment Trust Fund under § 903 of the Social Security Act and that has been appropriated for expenses of administration, whether or not withdrawn from the account, shall be excluded from the total amount available for benefits in the Unemployment Insurance Fund; and
the total amount available for benefits in the Unemployment Insurance Fund includes:
money receivable by the Unemployment Insurance Fund as federal reimbursement for shareable benefits under the Federal–State Extended Unemployment Compensation Act of 1970;
all advance payments made to the Unemployment Insurance Fund on behalf of eligible employing units who elect to make reimbursement payments; and
money receivable by the Unemployment Insurance Fund from an eligible employing unit who elects to make reimbursement payments.
For any calendar year beginning on or after January 1, 2017, the Table of Rates in effect for the immediately preceding calendar year shall continue to apply if:
the Unemployment Insurance Fund balance on September 30 of the immediately preceding calendar year was at a level that would result in a Table of Rates that had lower rates being applied under subsection (d) of this section; and
the federal funding goals requirement in 20 C.F.R. § 606.32 were not met as of December 31 of the second immediately preceding calendar year.
In this section the following terms have the meanings indicated.
“Business” or “trade” includes the employer’s workforce.
“Reorganized employer” means:
an employer that alters its legal status, including changing from a sole proprietorship or a partnership to a corporation; or
an employer that otherwise changes its trade name or business identity while remaining under any of the same ownership.
“Successor employer” means an employer that acquires, by sale or otherwise, all or part of the assets, business, organization, or trade of another employer.
A reorganized employer shall be liable for all contributions, interest, penalties, and administrative fees owed by the employing unit before the reorganization.
Subject to § 8–605.1(b) of this subtitle, a reorganized employer shall continue to pay contributions at the contribution rate of the employing unit before the reorganization from the date of the reorganization through the next December 31.
Beginning on the January 1 after the reorganization, the rate of contribution of the reorganized employer shall be based on its experience with payrolls and benefit charges, in combination with the experience with payrolls and benefit charges of the employing unit before the reorganization.
If a successor employer was not an employing unit before acquiring the assets, business, organization, or trade of a predecessor employer that is an employing unit, and has no common ownership, management, or control with the predecessor employer, then the successor employer shall be considered a new employing unit and shall be assigned a contribution rate in accordance with § 8–609 of this subtitle.
If a successor employer was an employing unit before acquiring the assets, business, organization, or trade of a predecessor employer that is an employing unit, and has no common ownership, management, or control with the predecessor employer:
subject to § 8–605.1(b) of this subtitle, the successor employer shall continue to pay contributions at the previously assigned rate from the date of the transfer through the next December 31;
beginning on the January 1 after the transfer, and for each calendar year thereafter, the rate of contribution of the successor employer shall be based on its experience with payrolls and benefit charges in combination with the proportionate share of payrolls and benefit charges acquired from the predecessor employer; and
if two or more successor employers receive the transfer, beginning on the January 1 after the transfer, and for each calendar year thereafter, the rate of contribution of each successor employer shall be based on its experience with payrolls and benefit charges in combination with the proportionate share of payrolls and benefit charges acquired from the predecessor employer.
Notwithstanding any other provision of this title, if a successor employer has any common ownership, management, or control with the predecessor employer, the contribution rate of the successor employer beginning as of the quarter in which the date of transfer occurred through the next December 31 shall be based on the successor employer’s experience with payrolls and benefit charges in combination with the payrolls and benefit charges of the predecessor employer.
If the transfer of assets, business, organization, or trade was a partial transfer of the predecessor employer’s business and the predecessor employer remains in business, beginning on the January 1 after the transfer, and for each calendar year thereafter, the rate of contribution of the successor employer shall be based on its experience with payrolls and benefit charges in combination with the proportionate share of payrolls and benefit charges acquired from the predecessor employer.
If the predecessor employer does not remain in business after the transfer of all or part of the assets, business, organization, or trade of the predecessor employer, and there is one successor employer, then the rate of contribution of the successor employer beginning on the January 1 after the transfer, and for each calendar year thereafter, shall be based on the successor employer’s experience with payrolls and benefit charges in combination with the payrolls and benefit charges of the predecessor employer.
If the predecessor employer does not remain in business after the transfer of all or part of the assets, business, organization, or trade of the predecessor employer, and there are two or more successor employers receiving the transfer, then the rate of contribution for each of the successor employers beginning on the January 1 after the transfer, and for each calendar year thereafter, shall be based on the successor employer’s experience with payrolls and benefit charges in combination with the proportionate share of payrolls and benefit charges acquired from the predecessor employer.
Any remaining portion of the predecessor employer’s experience shall be transferred to the successor employers according to each successor employer’s proportionate share of the payroll.
If a predecessor employer does not remain in business after the transfer of all or part of the assets, business, organization, or trade of the predecessor employer:
the successor employer is liable for all contributions, interest, penalties, and administrative fees owed by the predecessor employer at the time of the transfer; and
if two or more successor employers receive the transfer, the successor employers shall be liable in the same proportion as the payroll record of the unit being transferred is to the total business of the predecessor employer.
Subject to § 8–605.1(b) of this subtitle, a predecessor employer shall continue to pay contributions at the previously assigned rate through the next December 31 if the predecessor employer:
transfers only part of the assets, business, organization, or trade of the predecessor employer;
remains in business; and
has been assigned a contribution rate under this subtitle.
Subject to § 8–605.1(b) of this subtitle, if a predecessor employer has met each of the requirements to continue to pay contributions at the previously assigned rate through the December 31 after the transfer, beginning on the January 1 after the transfer the rate of contributions of the predecessor employer for each calendar year shall be based on:
its experience with payrolls and benefit charges; and
its experience incurred before the transfer less any experience that was transferred to a successor employer.
To qualify for an earned rate that is based on a transfer and that is lower than the rate otherwise would be, within 120 days after the transfer, a successor employer or new employer shall report the transfer and apply for the lower rate on a form and in the manner that the Secretary provides.
If the successor employer or new employer does not comply with paragraph (1) of this subsection in the time required, the Secretary shall adjust the earned rate as of the 1st calendar quarter after compliance.
Notwithstanding paragraphs (1) and (2) of this subsection, where a transfer results in a higher earned rate to the successor employer, the Secretary may combine the earned rating record of the predecessor and successor employers and, for the purpose of rate determination, transfer to the successor employer the taxable wages and benefit charges of the predecessor employer at any time.
The Secretary’s determination under this section is final and not subject to appeal if the employing unit does not request a review determination in accordance with § 8–604 of this subtitle within 30 days after the notice is sent to the employing unit.
In this section the following terms have the meanings indicated.
“Knowingly” means having actual knowledge or acting with deliberate ignorance or reckless disregard for the prohibition involved.
“Person” means, as defined in § 7701(a)(1) of the Internal Revenue Code of 1986, an individual, trust, estate, partnership, association, company, or corporation.
“Trade or business” includes the employer’s workforce.
“Violates or attempts to violate” includes intent to evade, misrepresentation, or willful nondisclosure.
If, following a transfer of experience, the Secretary determines that the transfer of trade or business occurred primarily or solely to obtain a reduced liability for contributions:
the experience rating accounts of the employing units involved shall be combined into a single account and a single rate assigned to the account; and
the employing units shall be subject to the penalties set forth in this section.
If an employing unit knowingly violates or attempts to violate any provision of this subtitle related to determining the assignment of a contribution rate, the employing unit shall be subject to the following penalties:
the employing unit shall be assigned the highest rate assignable under this subtitle for the rate year during which the violation or attempted violation occurred and the 3 rate years immediately following this rate year; or
if the employing unit is already assigned the highest rate for any year, or if the amount of increase in the employing unit’s rate would be less than 2% for that year, then a penalty rate of contributions of 2% of taxable wages shall be imposed for that year.
If a person, who is not an employing unit, violates, attempts to violate, or knowingly advises an employing unit in a manner that results in a violation of this subtitle, the person shall be subject to a civil money penalty of not more than $5,000.
The Secretary shall establish procedures to identify the transfer or acquisition of a trade or business for purposes of this section and § 8–613 of this subtitle.
An employing unit that knowingly violates or attempts to violate any provision of this subtitle is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 1 year or a fine not exceeding $10,000 or both.
A person, who is not an employing unit, who violates, or attempts to violate, or who knowingly advises an employing unit or a prospective employing unit in a manner that results in a violation of this subtitle, is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 1 year or a fine not exceeding $10,000 or both.
A nonprofit organization or a governmental entity that has been determined to be an employing unit may make an election in accordance with this Part III.
Under an election, a nonprofit organization shall reimburse the Unemployment Insurance Fund for all regular and work sharing benefits and 50% of extended benefits that are:
attributable to covered employment for the nonprofit organization; and
paid to individuals for any week of unemployment that begins during the effective period of the election.
If a claimant employed by a reimbursing nonprofit organization on a continuous part–time basis continues to be employed by the nonprofit organization while separated from other employment and is eligible for benefits because of that separation, the nonprofit organization may not be required to reimburse the Unemployment Insurance Fund for the benefits paid to the claimant because of that separation.
Under an election, a governmental entity shall reimburse the Unemployment Insurance Fund for all regular, work sharing, and extended benefits that are:
attributable to covered employment for the governmental entity; and
paid to individuals for any week of unemployment that begins during the effective period of the election.
A nonprofit organization may make an election that is effective on the day on which the Secretary determines that the organization is an employing unit by submitting to the Secretary a written notice of the election not later than 30 days after the determination.
A nonprofit organization that makes an election under this subsection shall continue to be liable for reimbursement payments:
for at least 1 year; and
until it submits a termination of the election under subsection (b) of this section.
After termination of an election a nonprofit organization shall continue to be liable for the amount of regular and work sharing benefits and 50% of extended benefits that are attributable to base period wages paid during the period of its election.
To terminate an election under this section, an employer shall submit to the Secretary a written notice of termination at least 30 days before the beginning of the calendar year for which the termination first shall be effective.
A nonprofit organization that has been paying contributions may make an election by submitting to the Secretary a written notice of the election at least 30 days before the beginning of a calendar year.
A nonprofit organization that makes an election under this subsection shall continue to be liable for reimbursement payments:
for at least 2 calendar years; and
until it submits a termination of the election under paragraph (3) of this subsection.
To terminate an election under this section, a nonprofit organization shall submit to the Secretary a written notice of termination at least 30 days before the beginning of the calendar year for which the termination first shall be effective.
The earned rating record of a nonprofit organization that elects to make reimbursement payments shall continue to be charged for regular and work sharing benefits and 50% of extended benefits that are attributable to base period wages paid during the period in which it paid contributions.
The Secretary:
for good cause may extend the period within which a nonprofit organization may submit a notice of election or notice of termination of election; and
may allow an election to be retroactive.
In accordance with regulations adopted to carry out this title, the Secretary shall notify each nonprofit organization of any determination that the Secretary makes about:
its status as an employing unit; or
the effective date of an election or termination of election.
A determination by the Secretary under subsection (f) of this section is final and not subject to appeal unless, within 30 days after the determination is sent to the employer, a nonprofit organization requests a review determination in accordance with § 8–604 of this subtitle.
This section applies to each nonprofit organization that makes an election.
Within 30 days after the effective date of an election, a nonprofit organization, as collateral:
shall execute and submit to the Secretary a surety bond that the Secretary approves; or
subject to the approval of the Secretary, shall deposit with the Secretary an irrevocable letter of credit, money, or security.
If a nonprofit organization has taxable wages for the preceding calendar year that equal or exceed 25 times the taxable wage base in effect for that calendar year, the amount of collateral required under this section shall equal 5.4% of the taxable wages paid by the nonprofit organization for covered employment for the 4 calendar quarters immediately preceding the most recent of the following:
the effective date of the election;
the biennial anniversary of the effective date of the election if the collateral is other than a bond; or
the renewal date of a bond if the collateral is a bond.
If a nonprofit organization has taxable wages for the preceding calendar year that are less than 25 times the taxable wage base in effect for that calendar year, the amount of collateral required under this section shall equal 2.7% of the taxable wages paid by the nonprofit organization for covered employment for the 4 calendar quarters immediately preceding the most recent of the following:
the effective date of the election;
the biennial anniversary of the effective date of the election if the collateral is other than a bond; or
the renewal date of a bond if the security is a bond.
If the nonprofit organization did not pay wages in all 4 calendar quarters used to calculate the amount of security, the Secretary shall determine the amount.
A bond submitted under this section shall be effective for at least 2 calendar years.
While an election is in effect:
renewal of the bond is subject to approval by the Secretary; and
the effective period of the bond shall be at least 2 years and may be longer if the Secretary so allows.
Subject to paragraph (2) of this subsection, the Secretary may require an adjustment in the amount of a bond that the Secretary already has approved, but the new amount may not be less than the average cost of benefits that are attributable to covered employment for the employing unit for the preceding 2 calendar years.
The amount of a bond after adjustment shall be the average of reimbursement payments that a nonprofit organization made in each of the 2 preceding calendar years, but the amount may not exceed the maximum rate of contribution under this subtitle times the taxable wage base of the nonprofit organization for the last calendar year.
If the Secretary requires an adjustment under this subsection, the Secretary shall mail notice of the required adjustment to the nonprofit organization at its last known address or otherwise deliver notice.
If the Secretary requires an increase in the amount of a bond, the nonprofit organization shall submit the adjusted bond to the Secretary within 30 days after the date that notice of the required adjustment was mailed or otherwise delivered to the nonprofit organization.
If a nonprofit organization that is covered by a bond fails to pay the full amount of a reimbursement payment when due, together with any applicable interest and penalties required under this subtitle, the surety shall be liable on the bond to the extent of the bond as if the surety was the nonprofit organization.
The Secretary shall deposit money or other security submitted under this section in an escrow account.
When a nonprofit organization is no longer liable for reimbursement payments, the Secretary shall return to it the collateral other than a bond less any deduction allowed in this section.
At any time, the Secretary may review the adequacy of the deposit of money or securities under this section.
If, as a result of a review, the Secretary determines that an adjustment is necessary, the Secretary shall:
require the nonprofit organization to make an additional deposit within 30 days of a written notice of the determination of the Secretary; or
return to the nonprofit organization that portion of the deposit that the Secretary no longer considers necessary.
Disposition of income from securities held in escrow shall be governed by the applicable provisions of State law.
The Secretary may make a deduction from an escrow account or sale of a security necessary to satisfy:
a payment in lieu of contributions that is due and unpaid; and
any applicable interest or penalty allowed under Part IV of this subtitle.
Within 30 days after a deduction of money or sale of a security under this subsection, a nonprofit organization shall submit to the Secretary money or securities sufficient to return the escrow account to its level before the deduction.
Any cash remaining from the sale of securities shall be part of the escrow account of the nonprofit organization.
Two or more employing units that have made an election may submit a joint application to the Secretary for establishment of a group account to share the cost of benefits that are attributable to covered employment for those employing units.
The application shall identify and authorize a group representative to act as the agent of the group.
On receipt of an application, the Secretary shall approve or disapprove the application.
On approval of an application, the Secretary shall:
establish a group account for the group, effective on the first day of the calendar quarter in which the Secretary receives the application; and
notify the group representative of the effective date of the account.
A group account shall continue to be effective:
for at least 1 year; and
until terminated at the discretion of the Secretary or on application by the group.
On receipt of a bill that the Secretary sends to the group, each member of the group is liable for reimbursement payments in an amount whose ratio to total benefits that are attributable to covered employment for all members of the group is the same as the ratio that as total wages paid by that member has to total wages paid by all members of the group.
The Secretary may adopt regulations for:
application for the establishment, maintenance, and termination of a group account;
addition of new members to a group account;
withdrawal of active members from a group account;
determination of the amounts that are payable under this section by each member of a group; and
manner and time of payments by a member of a group.
Reimbursement payments shall be made in accordance with this section.
Unless there is an application for review and redetermination of a bill under § 8–621 of this subtitle, a nonprofit organization or governmental entity shall pay the bill under this section within 30 days after the Secretary mailed the bill to the last known address of the nonprofit organization or governmental entity or otherwise delivered the bill to it.
If benefits paid to an individual are based on wages paid by 2 or more employing units, the amount payable by each employing unit under an election shall be an amount whose ratio to total benefits paid is the same as the ratio that total base period wages paid to the individual by that employing unit has to total base period wages paid by all base period employing units.
Except as provided in subsection (d) of this section, at the end of each calendar quarter or any other period set by the Secretary, the Secretary shall send:
to each nonprofit organization that has made an election or if the Secretary has approved a group account under § 8–619 of this subtitle, to the group representative, a bill for all regular and work sharing benefits, and 50% of extended benefits paid during that period that are attributable to covered employment for that nonprofit organization; and
to each governmental entity that has made an election, a bill for all regular, work sharing, and extended benefits paid during that period that are attributable to covered employment for that governmental entity.
On request, the Secretary may allow a nonprofit organization or governmental entity that has made an election to make reimbursement payments as provided in this subsection.
If the Secretary approves a request, the method of payment shall become effective on approval.
At the end of each calendar quarter or other period set by the Secretary, the Secretary shall mail to a nonprofit organization or governmental entity at its last known address or otherwise deliver to it:
a bill for a percentage of its total payroll for the immediately preceding calendar year as determined by the Secretary, based each year on the average cost of benefits that are attributable to covered employment for the nonprofit organization or governmental entity during the immediately preceding calendar year; or
if the nonprofit organization or governmental entity did not pay wages during the 4 calendar quarters of the preceding calendar year, a bill for a percentage of its payroll during that year as determined by the Secretary.
At the end of each calendar year:
the Secretary may modify the periodic percentage of payroll payable under this subsection for the upcoming year to minimize excess or insufficient payments;
the Secretary shall determine the difference between payments made by a nonprofit organization or governmental entity and the amount it is required to reimburse to the Unemployment Insurance Fund under § 8–616 of this subtitle; and
if the Unemployment Insurance Fund has not been reimbursed fully, the Secretary shall mail to the nonprofit organization or governmental entity at its last known address or otherwise deliver to it a bill for the difference and require payment in accordance with subsection (a)(2) of this section.
If the total payments for a calendar year exceed the amount required to be reimbursed, the Secretary may:
refund all or part of the excess from the Unemployment Insurance Fund; or
retain all or part of the excess in the Unemployment Insurance Fund as part of the payments that may be required for the next calendar year.
An employing unit may not deduct, wholly or partly, any payment made under this subtitle from the compensation of individuals in the employ of the nonprofit organization or governmental entity.
Except as provided in paragraph (2) of this subsection, if the Secretary recovers benefits charged to a nonprofit organization or governmental entity under § 8–809 of this title, the Secretary shall remove those charges from the account of the nonprofit organization or governmental entity.
The Secretary may not remove a benefit charge recovered by the Secretary under § 8–809 of this title from the account of a nonprofit organization or governmental entity if:
the benefit was paid as a direct or indirect result of the failure of the nonprofit organization or governmental entity, either directly or through an agent, to provide timely or adequate information relating to a claim for benefits in response to a request for information made by the Secretary under this title or regulations adopted to carry out this title; and
the nonprofit organization or governmental entity has not demonstrated good cause for failing to provide timely or adequate information.
In determining whether the Secretary is prohibited from removing a benefit charge under subparagraph (i) of this paragraph:
the nonprofit organization or governmental entity, either directly or through an agent, must raise the issue of good cause in writing for the issue to be considered; and
the nonprofit organization or governmental entity, either directly or through an agent, has the burden of proving there was good cause for failing to provide timely or adequate information.
A bill from the Secretary under § 8–620 of this subtitle is final and not subject to appeal for a nonprofit organization or governmental entity unless it requests a review determination in accordance with § 8–604 of this subtitle within 30 days after the bill was sent to the nonprofit organization or governmental entity.
If a nonprofit organization fails to file a bond or make a deposit of money or securities in accordance with § 8–618 of this subtitle, the Secretary may terminate the election.
A termination under paragraph (1) of this subsection shall continue for at least 1 year beginning with the first day of the calendar quarter in which the termination becomes effective.
For good cause, the Secretary may extend the period for submitting collateral for not more than 120 days.
If a nonprofit organization is delinquent in making reimbursement payments, the Secretary may terminate the election as of the next January 1.
A termination under this subsection shall be effective for 2 calendar years.
Each employer shall keep employment records that are accurate and contain information that the Secretary or Board of Appeals requires.
The Secretary or Board of Appeals may inspect and copy at any reasonable time and as often as necessary:
any record that an employer is required to keep under this section; and
cash disbursement journals, check registers, tax returns, and other documents that corroborate or supplement those records.
As necessary for the effective administration of this title, the Secretary or Board of Appeals may require that:
an employer submit any report with respect to individuals it employs; and
the report be made under oath.
For each calendar quarter, each employing unit shall submit to the Secretary a contribution and employment report on or before the date that the Secretary sets.
An employing unit shall include in a contribution and employment report information that the Secretary requires.
An employing unit that fails to submit a contribution and employment report under this section is subject to a penalty of $35 unless the Secretary waives the penalty for cause.
An employing unit that submits a check or other negotiable instrument in payment of any penalty under this subsection which is returned for insufficient funds is subject to an additional penalty of $25.
In this section, “date of employment” means the date on which an employee commences working for an employing unit.
Except as provided in subsection (c) of this section, within 20 days of an employee’s beginning employment, the employee’s employing unit shall submit to the Secretary:
the Social Security number of the employee;
the name of the employee;
the address of the employee;
the date of employment;
the employing unit’s name and address;
the employee’s starting wage;
whether the employee has health insurance provided by the employing unit;
the federal employer identification number of the employing unit; and
the State unemployment insurance account number of the employing unit.
The employing unit shall report the required information:
by mail;
magnetically or electronically; or
by other means as determined by the Secretary.
If an employing unit chooses to transmit data magnetically or electronically at a rate of twice per month, then the report must be submitted not less than 12 days or more than 16 days apart.
An employing unit that has employees in two or more states and that transmits reports magnetically or electronically may designate one state in which to transmit the report.
An employing unit that chooses to transmit the data to another state shall provide the Secretary with the name of the state receiving the report.
Any employing unit that fails to report as required:
shall be given a written warning for the first violation; and
shall be subject to a civil penalty of $20 for each month in which a subsequent violation occurs, or $500 if the failure is the result of a conspiracy between the employer and the employee to not supply the required report or to supply a false or incomplete report, unless the Secretary waives the penalty for cause.
All violations occurring in a single month to the same employing unit shall be considered a single violation.
An assessment under this section is final unless, within 15 days after the mailing of the assessment, an employing unit applies to the Secretary for a hearing. The Secretary may forward the application to the Office of Administrative Hearings for adjudication.
The Department of Human Services shall reimburse the Secretary for all costs incurred to carry out this section.
Except as provided in subsections (b) and (c) of this section, on request of the Secretary, an employing unit shall provide to the Secretary a report of the separation from employment of an individual.
An employing unit who submits a separation notice under this subsection shall:
complete the notice on a form or in a manner that the Secretary requires; and
submit the notice no later than the 8th calendar day after the day of the request.
On request, an employing unit who submits a separation notice under this subsection also shall submit to the Secretary a report of the wages of any of its employees.
An employing unit shall submit to the Secretary a single notice for a group of employees if the employing unit lays off at least 25 employees for the same reason at or about the same time in a single establishment for a period that is permanent, indefinite, or expected to exceed 7 days.
A notice under this subsection shall:
state the reason for the layoff; and
list the name and Social Security number of each employee whom the layoff affects.
An employing unit shall submit to the Secretary a single notice for a group of employees who become unemployed because of a labor dispute.
A notice under this subsection shall:
state the existence of the labor dispute without any statement about the nature of the dispute; and
list the name and Social Security number of each employee whom the labor dispute affects.
If the Secretary finds that the character or type of employment makes application of this section to a class of employers unreasonably onerous or impractical, the Secretary by regulation may exempt the class from the requirements of this section.
An employer that fails to submit a separation notice or report of wages under subsection (a) of this section is subject to a penalty of $15 for each notice unless the Secretary waives the penalty for cause.
An employer that submits a check or other negotiable instrument returned for insufficient funds in payment of any penalty under this subsection is subject to an additional penalty of $25.
Except as provided in § 8–201.1 of this title, a contribution or reimbursement payment that is due and unpaid shall accrue interest at the rate of 1.5% per month or part of a month from the date on which it is due until the Secretary receives the contribution or payment in lieu of contributions and the interest.
Notwithstanding subsection (a) of this section, except as provided in § 8–201.1 of this title, for any calendar year in which Table F is applicable under § 8–612(d)(6) of this subtitle, a contribution or reimbursement payment that is due and unpaid shall accrue interest at the rate of 0.5% per month or part of a month from the date on which it is due until the Secretary receives the contribution or payment in lieu of contributions and the interest.
If an employing unit fails to submit a contribution and employment report under § 8-626 of this subtitle, the Secretary:
may assess the penalty imposed under that section; and
shall mail written notice of the assessment to the employer at the last known address of the employer or otherwise deliver the notice.
If an employing unit fails to submit a separation notice under § 8-627 of this subtitle, the Secretary:
may assess the penalty imposed under that section; and
shall mail written notice of the assessment to the employer at the last known address of the employer or otherwise deliver the notice.
If an employing unit submits a report for determination of the amount of contributions due under this title but fails to pay the contributions or interest, the Secretary:
may assess the amount of contributions or interest due on the basis of the information in the report;
shall mail written notice of the assessment to the employing unit at the last known address of the employing unit or otherwise deliver the notice; and
notwithstanding subsection (f) of this section, may make an additional assessment if the report subsequently is found to be incorrect.
If an employing unit under an election fails to make a reimbursement payment or pay interest on the payment, the Secretary:
may assess the amount of the payment or interest due; and
shall mail written notice of the assessment to the employing unit at the last known address of the employing unit or otherwise deliver the notice.
Payments made by checks or other negotiable instruments returned for insufficient funds shall be considered a failure to pay contributions or reimbursements due under this subsection and are subject to an additional penalty of $25.
If an employing unit fails to submit a report under an election or for determination of the amount of contributions due on or before the date required by regulation, or if the Secretary determines that a report submitted by an employing unit is incorrect or insufficient, the Secretary shall require by written notice that the employing unit submit a correct and sufficient report.
An employing unit shall submit a correct and sufficient report within 10 days after the Secretary requires it.
If an employing unit fails to comply with paragraph (2) of this subsection, the Secretary shall:
make an assessment on the basis of any information that the Secretary is able to obtain; and
mail written notice of assessment to the employing unit at the last known address of the employing unit or otherwise deliver the notice.
Regardless of whether the time allowed under this title for submitting reports or contributions or making reimbursement payments has expired, if the Secretary believes that collection will be jeopardized by delay, the Secretary immediately may assess a contribution, reimbursement payment, or interest.
The Secretary shall mail written notice to an employing unit of an assessment under paragraph (1) of this subsection at the last known address of the employing unit or otherwise deliver the notice.
An assessment under this section is final unless:
within 30 days after the assessment was sent, an employing unit requests a review determination under § 8–604 of this subtitle; or
on its own motion, the Board of Appeals grants a hearing to consider whether the contribution or interest should be reduced.
After a hearing held under this subsection, the Board of Appeals shall:
pass an order to affirm, modify, or set aside the assessment; and
promptly give an employing unit written notice of its decision.
Except in the case of a fraudulent report or in the case of a period for which a report under § 8–626 of this subtitle was not filed, a notice under this section shall be sent to the employer within 3 years of the last day of the period at issue in the notice.
If an employing unit fails to pay an assessment under this section, the Secretary may file with the clerk of the circuit court of the county where the employing unit’s principal place of business is located and any other county a notice of lien that states:
the name of the employing unit;
the address of the employing unit;
the amount of the assessment; and
that the time for filing an appeal for judicial review has expired without an appeal having been taken.
On the filing of a notice of a lien under paragraph (1) of this subsection, the clerk of the court shall:
record and index the lien; and
enter the lien in the judgment docket of the court.
The docket entry shall include:
the name of the person whose property is subject to the lien; and
the amount and date of the lien.
On entry in the judgment docket of the information under subsection (e) of this section, the amount of the assessment, court costs, recording costs, and interest that continues to accrue on the assessment are a lien on the real and personal property of the employer against whom the assessment is made in the same manner and having the same force and effect as a judgment lien.
No property that an employer uses in connection with its business is exempt from the lien.
If, after assessment, an employing unit fails to pay a contribution, reimbursement payment, or interest, the Secretary may collect the amount due by a civil action in the name of the State in the same manner as provided for the collection of taxes under Title 13, Subtitle 8, Part III of the Tax - General Article.
A civil action brought under this section:
shall be heard by the court at the earliest possible date; and
except for petitions for judicial review under this title and cases arising under the workers’ compensation law of the State, shall be entitled to preference on the calendar of the court over all other civil actions.
An employer adjudged in default shall pay the costs of the action for collection.
The Secretary shall pay any interest and penalties collected under this Part IV of this subtitle into the Special Administrative Expense Fund.
If an assessment has become final under § 8-629 of this subtitle and an employing unit refuses to pay contributions or make reimbursement payments covered by the assessment within 10 days after the Secretary sends written notice to the last known address of the employing unit by registered mail, a court may, on a complaint filed by the Secretary, enjoin the employing unit from operating until the contributions or reimbursement payments have been paid.
If an employing unit refuses to submit a report required under this title within 10 days after the Secretary sends written notice to the last known address of the employing unit by registered mail, on a complaint filed by the Secretary, a court may enjoin the employing unit from operating until the report has been submitted.
A person who acquires the business, organization, trade, or a substantial part of the assets of an employing unit shall notify the Secretary in writing by certified mail, return receipt requested, at least 10 days before the acquisition.
If a person fails to give the notice required under subsection (a) of this section and if at the time of acquisition any contribution, reimbursement payment, or interest is due and unpaid by the previous employing unit:
the acquisition shall be void as to the Secretary; and
the Secretary may proceed against the person for collection in the manner provided in this Part IV of this subtitle.
If the assets of an employing unit are distributed under an order of any court under the laws of the State, including an adjudicated insolvency, assignment for the benefit of creditors, composition, or receivership, a contribution or reimbursement payment that is or will become due shall be paid in full prior to all other claims except taxes with which the assets shall be shared pro rata.
If an employer dies, an unpaid contribution or reimbursement payment shall be allowable against the estate of the employer as a preferred debt in accordance with § 13-801 of the Tax - General Article.
If an employing unit under the federal Bankruptcy Act is adjudicated bankrupt, has debts adjusted by composition, or has an extension proposal judicially confirmed, a contribution or payment in lieu of contributions that is or will become due shall be entitled to priority as a tax as provided under § 64(a) of that Act.
A court may not allow or approve a final act or report of an assignee, auditor, personal representative, receiver, or trustee or other fiduciary or officer engaged in administering the assets of an employing unit and acting under the authority or supervision of the court unless the Secretary has been given written notice at least 10 days before allowance or approval of the act or report.
On receipt of a notice under paragraph (1) of this subsection, the Secretary may file a claim or interpose an objection to the act or report.
A corporation that does not pay a contribution, reimbursement payment, or interest is subject to forfeiture of its corporate charter in accordance with Title 3, Subtitle 5 of the Corporations and Associations Article.
The Secretary may collect a contribution, reimbursement payment, or interest that a corporation owes at the time of dissolution in accordance with §§ 3-407, 3-417, and 3-519 of the Corporations and Associations Article.
If the Secretary determines that the best interests of the State will be served, the Secretary may:
adjust, compromise, or settle any claim or judgment for a contribution, reimbursement payment, or interest assessed against an employing unit;
accept a lesser amount; or
issue a release of claim or satisfaction of judgment.
An employer that has paid to the Secretary, wholly or partly, contributions or interest alleged to be due may submit to the Secretary an application for:
an adjustment in connection with contributions then due; or
if an adjustment cannot be made, a refund.
An employing unit that wishes to apply for an adjustment or refund shall apply within the later of:
1 year from the date on which the payment was made; or
4 years from the last day of the calendar quarter for which the payment was made.
If the Secretary determines that the contested amount or any part of it was collected erroneously, the Secretary shall:
allow the employing unit to make an adjustment without interest to the contribution then due by the employing unit; or
if an adjustment cannot be made, refund the amount without interest.
The Secretary shall refund a contribution that was collected erroneously from the Unemployment Insurance Fund and interest that was collected erroneously from the Special Administrative Expense Fund.
If an employing unit reported wages that have been included in the determination of an eligible claimant for benefits, the Secretary shall reduce any adjustment or refund by the amount of benefits received by the claimant that are chargeable to the employing unit.
Within the time limitation for an application under subsection (b) of this section and in accordance with subsection (c) of this section, the Secretary, on the Secretary’s own initiative, may make an adjustment or grant a refund without interest.
If a claim for an adjustment or refund is rejected, the Secretary shall send a written notice of rejection to the employing unit.
The Secretary’s determination under paragraph (1) of this subsection is final and not subject to appeal if the employing unit does not request a review determination in accordance with § 8–604 of this subtitle within 30 days after the notice is sent to the employing unit.
This title does not:
authorize an adjustment or refund of money that was due under the law in effect at the time that the money was paid; or
prohibit a refund required under § 8–640 of this subtitle.
If a final judgment is rendered in favor of an employer after judicial review of an appeal under § 8-602, § 8-629, or § 8-638 of this subtitle, the Secretary shall refund to the employer, as provided in § 8-638, the amount of contributions or interest found by a court to have been collected invalidly or illegally.
In any year in which this title is not certified by the United States Secretary of Labor under § 3304 of the Internal Revenue Code, the Secretary shall refund money that was collected from an instrumentality of the United States for which Congress permits employment to be covered employment. The refund shall be made in the same manner and within the same time period as provided under § 8-638 of this subtitle.