§383-63  Definitions for experience rating provisions.  As used in sections 383-63 to 383-69:

     "Adequate reserve fund" means an amount that is equal to the amount derived by multiplying the benefit cost rate that is the highest during the ten-year period ending on November 30 of each year by the total remuneration paid by all employers, with respect to all employment for which contributions are payable during the last four calendar quarters ending on June 30 of the same year, as reported on contribution reports filed on or before October 31 of the same year.  "Remuneration", as used in this definition, means wages as defined in section 383-10.  For the purpose of determining the highest benefit cost rate, the benefit cost rate for the first twelve-consecutive-calendar-month period beginning with the first day of the first month of the ten-year period and for each succeeding twelve-consecutive-calendar-month period beginning with the first day of each subsequent month shall be computed.

     Effective for the calendar years 1992 through 2007, and for calendar year 2011, "adequate reserve fund" means an amount that is equal to the amount derived by multiplying the benefit cost rate that is the highest during the ten-year period ending on November 30 of each year by the total remuneration paid by all employers, with respect to all employment for which contributions are payable during the last four calendar quarters ending on June 30 of the same year, as reported on contribution reports filed on or before October 31 of the same year.

     Effective for the calendar years 2023 through 2030, "adequate reserve fund" means an amount that is equal to the amount derived by multiplying the benefit cost rate that is the highest during the ten-year period ending on November 30 of each year by the total remuneration paid by all employers, with respect to all employment for which contributions are payable during the last four calendar quarters ending on June 30 of the same year, as reported on contribution reports filed on or before October 31 of the same year, but shall not include the benefit cost rate from June 2020 through August 2021.

     "Annual payroll" means the total amount of wages for employment paid by an employer during a calendar year; and "average annual payroll" means the average of the annual payrolls of an employer for a period consisting of the three consecutive calendar years immediately preceding the calendar year for which rates are computed, except that, for an employer whose account has been chargeable with benefits throughout at least one year but less than three years ending on December 31, 1955, and each December 31 thereafter, "average annual payroll" means one-third of the sum of the employer's cumulative payrolls for the period in which the employer has been subject to this chapter, but not more than the three calendar years ending on such December 31.  Whenever there was or is a change in the definition of "employment" or in the definition of "wages", effective for the purposes of this chapter generally or of this part at the commencement of or at a date within the three-year period of any average annual payroll, "employment" and "wages" for the purpose of determining each annual payroll within such period and the average annual payroll for such period, shall have the meaning prior to the effective date of such change which they had in accordance with this chapter then in effect and shall have the meaning after the effective date of such change assigned to them by the amendment to this chapter providing for such change.

     "Base period employers" means employers by whom an individual was paid the individual's base period wages.

     "Base period wages" means the wages paid to an individual during the individual's base period for insured work.

     "Benefit cost rate" means the rate derived by dividing the total net benefits paid to all individuals during a twelve-consecutive-calendar-month period by the total remuneration paid by all employers with respect to employment for which contributions are payable during the last four completed calendar quarters ending at least five months before the end of the twelve-consecutive-month period.  "Remuneration", as used in this definition, means wages as defined in section 383-10.

     "Contributions" includes the money payments required by this chapter to be made into the fund by any employing unit on account of having individuals in its employ.  "Contributions" does not include penalties or interest for delinquency in payments.

     "Current reserve fund" means the total assets of the fund available for the payment of benefits on November 30 of each year (exclusive of all moneys credited under section 903 of the Social Security Act to the account of this State in the unemployment trust fund that have been appropriated for expenses of administration whether or not withdrawn from the trust fund).

     "Reserve balance" means the difference between all contributions paid by an employer and credited to the employer's account for all periods before January 1 (including those paid before February 1 of the same year with respect to wages paid by the employer before January 1 of the same year) and the total benefits chargeable to the employer's account for all periods before January 1 of the same year. [L 1941, c 304, §1, pt of subs 21; RL 1945, §4248; am L 1949, c 316, §1(1), (2); am L 1953, c 41, §1(6); am L 1955, c 18, §1(1); RL 1955, §93-62; am L 1964, c 55, §4; HRS §383-63; am L 1969, c 277, §1; am L 1978, c 235, §3; gen ch 1985; am L 1991, c 68, §6; am L 2007, c 110, §4; am L 2010, c 2, §4; am L 2022, c 281, §1]

Note

  The 2010 amendment applies retroactively to January 1, 2010, for determinations of the employer's contribution rate and wage base.  L 2010, c 2, §8.