Mich. Admin. Code R. 421.602 - Nonprofit employer liable before December 21, 1989, electing reimbursement payments; security
Rule 2.
(1) A
nonprofit employer that was liable before December 21, 1989, and that elects
the reimbursement method of financing on or after December 21, 1989, shall be
required to post a security for the year of election and the succeeding year.
Thereafter, the security shall be renewed for 2-year periods. A nonprofit
employer that seeks to renew a security and thereby retain reimbursement status
by posting a security shall do so by November 30 of the year before the year
for which the security is renewed.
(2) The security shall be in the form of a
surety bond, irrevocable letter of credit, or other banking device which is
acceptable to the commission and which provides for payment to the commission,
on demand, of an amount equal to the security that is required to be posted.
The required security may be posted by a third-party guarantor.
(3) This rule shall not apply to a nonprofit
employer that is expected to have less than $100,000.00 or less per calendar
year in total wage payments, as determined by the commission. However, a
nonprofit employer that elects reimbursement status on or after December 21,
1989, shall be required to provide security when the payment of gross wages in
a calendar year reaches exceeds $100,000.00. It is the employer's duty to
notify the commission, within 60 days, that its payroll has reached exceeds
$100,000.00 per year. The security shall be posted within 30 days of notice of
such requirement by the commission.
(4) The amount of security that is required
shall be 4.0% of the employer's estimated total annual wage payments, as
determined by the commission. Employers that have a previous wage payment
history shall be required to file a security that is equal to 4.0% of the gross
wages paid for the 12-month period ended June 30 of the year before the year
the security is required or 4.0% of the estimated total annual wages, whichever
is greater.
Notes
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