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(1) In general (A) General rule (i) Contribution rate generally Every employer shall pay a contribution, with respect to having employees in his service, equal to the percentage determined under subparagraph (B), (C), or (D), whichever is applicable, of so much of the compensation paid in any calendar month by such employer to any employee as is not in excess of the monthly compensation base for that month as computed under section 351(i) of this title . (ii) Multiple employer limitation If compensation is paid to an employee by more than one employer in any calendar month— (I) the contributions required by this subsection shall not apply to any amount of the aggregate compensation paid to such employee by all such employers in such calendar month which is in excess of such monthly compensation base; and (II) each employer (other than a subordinate unit of a national-railway-labor-organization employer) shall be liable for that portion of the contribution with respect to such compensation paid by all such employers which the compensation paid by him to such employee bears to the total compensation paid in such month by all such employers to such employee. In the event that the compensation paid by such employers to the employee in such month is less than such monthly compensation base, each subordinate unit of a national-railway-labor-organization employer shall be liable for such portion of any additional contribution as the compensation paid by such employer to such employee in such month bears to the total compensation paid by all such employers to such employee in such month. (B) Transitional rule (i) 1st, 2d, and 3d calendar years Except as provided in clause (vi), with respect to compensation paid in calendar years 1988, 1989, and 1990, the contribution rate shall be 8 percent. (ii) 4th calendar year With respect to compensation paid in calendar year 1991, the contribution rate shall be the smaller of— (I) the maximum contribution limit computed under paragraph (20); or (II) the percentage computed pursuant to the following formula: 2A+B R= ——— 3 (iii) 5th calendar year With respect to compensation paid in calendar year 1992, the contribution rate shall be the smaller of— (I) the maximum contribution limit computed under paragraph (20); or (II) the percentage computed pursuant to the following formula: A+2C R= ——— 3 (iv) Meaning of symbols For purposes of the formulas in clauses (ii) and (iii)— (I) “R” is the applicable contribution rate expressed as a percentage for months in the calendar year; (II) “A” is the contribution rate determined under clause (i); (III) “B” is the percentage rate for the employer, as determined under subparagraph (C), for calendar year 1991; and (IV) “C” is the percentage rate for the employer, as determined under subparagraph (C), for calendar year 1992. (v) Special rule for certain computations For purposes of computing B and C in such formulas— (I) the percentage rate computed under subparagraph (C), if more than the maximum contribution limit computed under paragraph (20) shall not be reduced to that limit; and (II) any computations which under subparagraph (C) are to be made on the basis of a 4-quarter or a 12-quarter period ending on a given June 30 shall be made on the basis of a period beginning on January 1, 1990 , and ending on that June 30, and the amount so computed shall be increased to an amount that bears the same ratio to the amount so computed as 4 or 12, as appropriate, bears to the number of calendar quarters in the period on which the computation was based. (vi) Special transition rule for public commuter railroads With respect to each of calendar years 1989 and 1990, the contribution of the National Railroad Passenger Corporation and an employer which on November 10, 1988 , is a publicly funded and publicly operated carrier providing rail commuter service shall be equal to the amount of benefits attributable to such carrier, plus an amount equal to 0.65 percent of the total compensation paid by that employer in that year on which that employer’s contribution would be based under clause (i) if such employer’s contribution were determined under that clause. (C) Experience-rated contributions With respect to compensation paid in a calendar year that begins after December 31, 1992 , the contribution rate for each employer shall be determined as follows: (i) Step 1 Compute the employer’s benefit ratio as of the preceding June 30 to 4 decimal points in accordance with paragraph (2). (ii) Step 2 Subtract the employer’s reserve ratio as of the preceding June 30 as computed to 4 decimal points in accordance with paragraph (4). (iii) Step 3 Subtract the pooled credit ratio for the calendar year, if any, as computed to 4 decimal points in accordance with paragraph (12). (iv) Step 4 Multiply by 100 the total arrived at under the steps set forth in clauses (i) through (iii) so as to obtain a percentage rate, which shall be rounded to the nearest 100th of 1 percent. If the total arrived at under such steps is 0 or less than 0, the percentage rate as so computed shall be 0. (v) Step 5 Add 0.65 to the percentage rate arrived at under clause (iv), representing the portion of the employer’s contribution which is to be deposited to the credit of the fund under subsection (i). (vi) Step 6 Add the surcharge rate for the calendar year, if any, as computed under paragraph (14). (vii) Step 7 Add the pooled charge ratio for the calendar year, if any, as computed to 4 decimal points under paragraph (13) and multiplied by 100. (viii) Step 8 Reduce the precentage rate computed in accordance with the preceding steps to the maximum contribution limit computed under paragraph (20), if such rate is higher than such limit. The rate computed in accordance with the preceding steps, after any reduction under this clause, is the contribution rate. (D) New-employer contribution rates Notwithstanding subparagraphs (B) and (C), the contribution rate applicable to a new employer who does not become subject to this chapter until after December 31, 1989 , shall be determined as follows: (i) 1st calendar year With respect to compensation paid in calendar months before the end of the first full calendar year in which the employer is subject to this chapter, the contribution rate shall be the average contribution rate paid by all employers during the 3 calendar years preceding the calendar year before the calendar year in which the compensation is paid. The average contribution rate shall be determined— (I) by dividing the aggregate contributions paid by all employers under this subsection in those 3 calendar years by the aggregate compensation with respect to which such contributions were paid; and (II) by multiplying the resulting ratio as computed to 4 decimal points by 100. (ii) 2d calendar year With respect to compensation paid in calendar months in the next calendar year, the contribution rate shall be the smaller of— (I) the maximum contribution limit computed under paragraph (20); or (II) the percentage rate computed pursuant to the following formula: 2(A2)+B R= A ————  3 (iii) 3d calendar year With respect to compensation paid in calendar months in the third full calendar year in which the employer is subject to the coverage of this chapter, the contribution rate shall be the smaller of— (I) the maximum contribution limit computed under paragraph (20); or (II) the percentage rate computed pursuant to the following formula: A3+2C R= ——— 3 (iv) Subsequent calendar years With respect to all calendar months in calendar years subsequent to that calendar year, the contribution rate shall be determined under subparagraph (C). (v) Meaning of symbols For purposes of the formulas in clauses (ii) and (iii)— (I) “R” is the applicable contribution rate expressed as a percentage for months in the calendar year; (II) “A1” is the contribution rate determined under clause (i) for such employer’s first full calendar year; (III) “A2” is the contribution rate which would have been determined under clause (i) if the employer’s second calendar year had been its first full calendar year; (IV) “A3” is the contribution rate which would have been determined under clause (i) if the employer’s third calendar year had been such employer’s first full calendar year; (V) “B” is the contribution rate for the employer as determined under subparagraph (C) for the employer’s second full calendar year; and (VI) “C” is the contribution rate for the employer as determined under subparagraph (C) for the employer’s third full calendar year. (vi) Special rule for certain computations For purposes of computing B and C in such formulas— (I) the percentage rate computed under subparagraph (C), shall not be reduced under clause (viii) of that subparagraph; and (II) any computations which under subparagraph (C) are to be made on the basis of a 4-quarter or 12-quarter period ending on a given June 30 shall be made on the basis of a period commencing with the first day of the first calendar quarter that begins after the date on which the employer first commenced paying compensation subject to this chapter and ending on that June 30, and the amount so computed shall be increased to an amount that bears the same ratio to the amount so computed as 4 or 12, as appropriate, bears to the number of calendar quarters in the period on which the computation was based.

Source

45 USC § 358(a)(1)


Scoping language

None identified. Default scope is assumed to be the entire title.
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