Utah Code § 35A-4-309

Nonprofit organizations -- Contributions -- Payments in lieu of contributions
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(1) Notwithstanding any other provisions of this chapter for payments by employers, benefits
paid to employees of nonprofit organizations, as described in Section 501(c)(3) of the Internal
Revenue Code, 26 U.S.C. 501(c)(3), that are exempt from income tax under Section 501(a),
shall be financed in accordance with the following provisions:
(a) Any nonprofit organization which is, or becomes, subject to this chapter shall pay
contributions under Section 35A-4-303, unless it elects in accordance with this Subsection (1)
to pay to the division for the unemployment fund an amount equal to the amount of regular
benefits and of 1/2 of the extended benefits paid that is attributable to service in the employ
of the nonprofit organization, to individuals for weeks of unemployment that begin during the
effective period of this election.
(b)
(i) Any nonprofit organization that is, or becomes, subject to this chapter may elect to become
liable for payments in lieu of contributions for a period of not less than one contribution year
beginning with the date on which the organization becomes subject to this chapter.
(ii) The nonprofit organization shall file a written notice of its election with the division not later
than 30 days immediately following the date that the division gives notice to the organization
that it is subject to this chapter.
(c) Any nonprofit organization that makes an election in accordance with Subsection (1)(b)(i)
shall continue to be liable for payments in lieu of contributions until it files with the division
a written notice terminating its election, not later than 30 days prior to the beginning of the
contribution year for which this termination shall first be effective.
(d)
(i) Any nonprofit organization that has been paying contributions under this chapter may
change to a reimbursable basis by filing with the division, no later than 30 days prior to the
beginning of any contribution year, a written notice of election to become liable for payments
in lieu of contributions.
(ii) This election is not terminable by the organization for that year or the next year.
(e) The division may, for good cause, extend the period within which a notice of election or a
notice of termination shall be filed and may permit an election to be retroactive.
(f)
(i) The division, in accordance with department rules, shall notify each nonprofit organization of
any determination that the division may make of the organization's status as an employer, of
the effective date of any election that it makes, and of any termination of this election.
(ii) These determinations are subject to reconsideration, appeal, and review in accordance with
Section 35A-4-508.

(2) Payments in lieu of contributions shall be made in accordance with this Subsection (2).
(a) At the end of each calendar month, or at the end of any other period as determined by the
division, the division shall bill each nonprofit organization or group of nonprofit organizations
that has elected to make payments in lieu of contributions for an amount equal to the full
amount of regular benefits plus one-half of the amount of extended benefits paid during
this month or other prescribed period that is attributable to service in the employ of the
organization.
(b) Payment of any bill rendered under Subsection (2)(a) shall be made no later than 30 days
after the bill was mailed to the last-known address of the nonprofit organization or was
otherwise delivered to it, unless there has been an application for review and redetermination
in accordance with Subsection (2)(d).
(c) Payments made by any nonprofit organization under this Subsection (2) may not be
deducted or deductible, in whole or in part, from the remuneration of individuals in the employ
of the organization.
(d)
(i) The amount due specified in any bill from the division shall be conclusive on the
organization unless, not later than 15 days after the bill was mailed to its last-known address
or otherwise delivered to it, the organization files an application for redetermination by
the division or an appeal to the Division of Adjudication, setting forth the grounds for the
application or appeal in accordance with Section 35A-4-508.
(ii) The division shall promptly review and reconsider the amount due specified in the bill
and shall thereafter issue a redetermination in any case in which the application for
redetermination has been filed.
(iii) Any redetermination is conclusive on the organization unless, no later than 15 days after
the redetermination was mailed to its last known address or otherwise delivered to it, the
organization files an appeal to the Division of Adjudication in accordance with Section

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