North Dakota Century Code 52-04-05 (6a) provides that the Executive Director of Job Service North Dakota may provide negative balance employers with up to a thirty percent reduction to the employer's rate for any year if:
- The employer's current year's Cumulative Lifetime Reserve is in a negative status
- Immediately preceding the tax year, for which the reduction is considered, the employer has experienced three consecutive fiscal years where that employer's total contributions paid to the Trust Fund have exceeded benefit charges against that employer's account(s)
- The employer has a plan in place, approved by Job Service North Dakota, that addresses and documents substantive investments and/or changes to that employer's business operations that were intended to reduce the amount of time their workers are on layoff status and reduce charges against their Unemployment Insurance account(s)
- An account analysis determines that the rate reduction does not bring the employer's tax rate below 5.4%, and ensures that any rate reduction will not put the employer's account(s) back into a negative status (benefit charges exceed contributions in the business plan tax year)
Objective
The "rate reduction" provision in the North Dakota Unemployment Compensation Law is intended to provide incentives to encourage employers to become involved in the management of their cost and risk under the program. The "rate reduction" provision provides incentives to those employers who have made investments and taken steps to change their business operations, which are intended to reduce the length of time their workers are on layoff, and reduce total benefit charges against their accounts.
Definitions
Fiscal Year: October through September
Business Plan Tax Year: This is the tax (calendar) year for which the Business Plan is being prepared.
Applications
Applications must be submitted no later than March 31st of each tax year. Click here to download application.