N.J. Admin. Code § 12:16-6.2

Current through Register Vol. 56, No. 11, June 3, 2024

Section 12:16-6.2 - Financial security requirements

(a) A non-profit organization electing coverage under the reimbursement option may be required to file with the Controller or his or her designee within 30 days after the effective date of its election, a security bond or to deposit with the Controller or his or her designee monies or securities in an amount as determined by the Controller or his or her designee. This amount shall not be less than the organization's taxable wages for the preceding calendar year or the estimated taxable wages for the current calendar year, whichever is the greater, multiplied by the maximum unemployment insurance contribution rate in effect at the beginning of the calendar year.

1. If the security requirement is not met within the prescribed time limits, the previously issued conditional approval shall be withdrawn retroactively to its effective date, and the employer shall be liable for contributions as if such approval had not been issued.

2. The Controller or his or her designee may make a periodic review of the adequacy of the security furnished by the non-profit reimbursable employer to determine if any adjustment is necessary.

3. The Controller or his or her designee may deduct from any monies deposited under (a) above by a non-profit organization, or may sell the securities so deposited to the extent necessary to satisfy any due and unpaid payments in lieu of contributions and any applicable interest or penalties.

4. The Controller or his or her designee may extend for good cause the applicable filing, deposit or adjustment period by not more than 90 days.

N.J. Admin. Code § 12:16-6.2

Amended by R.1995 d.138, effective 3/6/1995.
See: 27 New Jersey Register 61(a), 27 New Jersey Register 919(a).