§ 8-618. Required security for not for profit organizations
West's Annotated Code of MarylandLabor and EmploymentEffective: October 1, 2017
Effective: October 1, 2017
MD Code, Labor and Employment, § 8-618
§ 8-618. Required security for not for profit organizations
(b) Within 30 days after the effective date of an election, a nonprofit organization, as collateral:
(c)(1) If a nonprofit organization has taxable wages for the preceding calendar year that equal or exceed 25 times the taxable wage base in effect for that calendar year, the amount of collateral required under this section shall equal 5.4% of the taxable wages paid by the nonprofit organization for covered employment for the 4 calendar quarters immediately preceding the most recent of the following:
(2) If a nonprofit organization has taxable wages for the preceding calendar year that are less than 25 times the taxable wage base in effect for that calendar year, the amount of collateral required under this section shall equal 2.7% of the taxable wages paid by the nonprofit organization for covered employment for the 4 calendar quarters immediately preceding the most recent of the following:
(d)(1) A bond submitted under this section shall be effective for at least 2 calendar years.
(e)(1) Subject to paragraph (2) of this subsection, the Secretary may require an adjustment in the amount of a bond that the Secretary already has approved, but the new amount may not be less than the average cost of benefits that are attributable to covered employment for the employing unit for the preceding 2 calendar years.
(2) The amount of a bond after adjustment shall be the average of reimbursement payments that a nonprofit organization made in each of the 2 preceding calendar years, but the amount may not exceed the maximum rate of contribution under this subtitle times the taxable wage base of the nonprofit organization for the last calendar year.
(f) If a nonprofit organization that is covered by a bond fails to pay the full amount of a reimbursement payment when due, together with any applicable interest and penalties required under this subtitle, the surety shall be liable on the bond to the extent of the bond as if the surety was the nonprofit organization.
(g)(1) The Secretary shall deposit money or other security submitted under this section in an escrow account.
(h)(1) At any time, the Secretary may review the adequacy of the deposit of money or securities under this section.
(i)(1) The Secretary may make a deduction from an escrow account or sale of a security necessary to satisfy:
Credits
Added by Acts 1991, c. 8, § 2, eff. Oct. 1, 1991. Amended by Acts 1992, c. 141; Acts 2017, c. 631, § 1, eff. Oct. 1, 2017.
Formerly Art. 95A, § 8.
MD Code, Labor and Employment, § 8-618, MD LABOR & EMPLY § 8-618
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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