§ 8-607. Duty to pay contributions

   (a) In general. -- 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.

(b) Taxable wage base. --

   (1) Subject to paragraph (2) of this subsection, the taxable wage base is the first $ 8,500 in wages that:

      (i) an employing unit pays to each employee for covered employment during a calendar year;

      (ii) 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;

      (iii) 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

      (iv) 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.

   (2) 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.

(c) Rate determination; effective period. --

   (1) The Secretary shall determine the rate of contribution for each employing unit as of the computation date for the next calendar year.

   (2) The rate of contribution is effective for 1 calendar year.

(d) Time and manner for payment; fractional cents. --

   (1) (i) By regulation, the Secretary shall set:

         1. the date when contributions are due; and

         2. the manner in which contributions are to be paid.

      (ii) The regulations shall require that, for any calendar year in which Table F is applicable under § 8-612(d)(6) of this title, the Secretary 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.

   (2) In accordance with regulations adopted by the Secretary, an employing unit shall:

      (i) submit to the Secretary periodic reports for determination of the amount of contributions due; and

      (ii) pay the contribution.

   (3) For payment of contributions, a fractional part of a cent:

      (i) that is less than one-half cent shall be disregarded; and

      (ii) that is one-half cent or more shall be increased to 1 cent.

(e) Wages paid by private, for-profit entity to inmate. -- Wages paid by a private, for-profit employing unit to an inmate of a custodial or penal institution before the inmate is permanently released from the custodial or penal institution, including released by parole, may not constitute taxable wages.

(f) Deduction from wages prohibited. -- An employing unit may not deduct contributions, wholly or partly, from the wages of an employee.

HISTORY: An. Code 1957, art. 95A, § 8, 20; 1991, ch. 8, § 2; 1992, ch. 22, § 1; ch. 554, § 1, 3; 1996, ch. 611; 1998, ch. 21, § 1; ch. 747; 2005, ch. 610; 2007, ch. 5, § 7; ch. 471; 2008, ch. 36; 2010, ch. 2, § 6; ch. 72, § 5.