R994. Workforce Services, Unemployment Insurance. R994-401. Payment of Benefits. R994-401-101. Payment of Unemployment Insurance Benefits. Eligibility for unemployment insurance benefits is established and unemployment insurance benefits are paid on a weekly basis. The week starts on Sunday and ends on Saturday. Unemployment insurance benefits do not become due until the end of the week for which unemployment insurance benefits are claimed. R994-401-201. Weekly Benefit Amount (WBA), Maximum Benefit Amount (MBA), and Monetary Determination. (1) The formulas for determining the WBA and the MBA are found in Section 35A-4-401. For purposes of calculating WBA and MBA and for all other relevant purposes, "total insured workers" is defined as the sum of the monthly total of reported insured workers during the calendar year or fiscal year, as applicable. (2) The wages used to determine the WBA and the MBA are limited to wages reported to the Department by base period employers and verifiable wages paid by additional base period employers reported by the claimant in the initial claim. If an employer does not report wages and the claimant verifies wages from that employer, those wages may be included. (3) The Department will send the claimant a "Notice of Monetary Determination." (a) The notice will inform the claimant of: (i) the WBA, MBA, and the wages used to determine the claimant's monetary eligibility; and (ii) the claimant's right to appeal the monetary determination. (b) The claimant must notify the Department of any errors in the monetary determination. (c) The time limit for notifying the Department of any errors or for appealing a monetary determination is the same as filing an appeal from an initial Department determination and is governed by Sections R994-508-102 through R994-508-104. (4) The monetary determination is based on the wages actually paid during the base period regardless of when the work was performed. (5) To be monetarily eligible, a claimant must: (a) have earned base period wages of 1-1/2 times the high quarter wages; and (b) meet a minimum dollar amount as established by the monetary base period wage requirement defined in Section 35A-4-201. (6) For any claimant who is not monetarily eligible under the 1-1/2 times requirement in Subsection R994-401-201(5), the claimant will be eligible if: (a) the claimant's benefit year is effective on or before January 1, 2011; (b) the claimant meets the monetary base period wage requirement; and (c) the claimant had earnings of at least 5% of the monetary base period wage requirement, in each of at least 20 weeks in insured work during the base period. (i) The earnings must be for work performed during each of the 20 weeks, all of which must fall within the base period, regardless of when the claimant received payment for the work. (ii) The requirement that the claimant show work and earnings in 20 weeks is only met if the claimant has "wages paid," as defined in Section R994-401-202. (iii) The dollar amount for each of the 20 weeks required to establish eligibility under Subsection R994-401-201(6)(c) will be determined by the monetary base period wage requirement for insured work in effect for the calendar year in which the initial claim is filed even if any week occurred in a different calendar year. (iv) It is the claimant's responsibility to show 20 weeks of covered employment which meet the minimum dollar amount. Acceptable proof of covered employment includes: (A) appropriately dated check stubs issued by the employer; (B) a written statement from the employer showing dates of employment and the amount of earnings for each week; (C) time cards; (D) canceled payroll checks; or (E) personal or business records kept in the normal course of employment that would substantiate work and earnings. (7) An employer's potential liability is based on its proportion of the claimant's base period wages. (a) Employers will be informed of the: (i) wages used in determining a claimant's monetary entitlement; (ii) employer's potential liability for benefits costs; and (iii) right to and time limitation for requesting relief of charges or a correction to wages. (b) A contributory employer will be issued a notice of benefit costs each quarter and may report any errors or omissions to the Department. The quarterly notices will give the employer 30 days to advise the Department of any corrections, as provided in Subsection 35A-4-306(3). (10) A party failing to file a timely appeal or protest may lose its right to have the monetary determination corrected. An untimely appeal or protest may be considered if the party had good cause, as defined in Section R994-508-104. (11) In its discretion, the Department may revise the monetary determination after the expiration of the appeal period if: (a) there has been a mistake as to the facts; or (b) the revision would be: (i) substantial; and (ii) required by fairness for a party who did not have access to the information and therefore could not have reasonably filed a timely appeal. R994-401-202. Wages Used to Determine Monetary Eligibility. (1) "Wages paid" include those wages actually received by the worker and wages constructively paid, provided the employer's liability for payment has become unconditionally established. (a) Wages are considered constructively paid, for the purposes of this section, on the earliest of: (i) the next regular pay day in accordance with the employer's customary payment practices; (ii) the day required by contractual agreement; or (iii) as required by state law. (2) Quarterly wages are all wages paid or constructively paid during a quarter regardless of when those wages are earned. (a) Bonus or lump sum payments made within the quarter which were not due on any specific day shall be treated as wages paid during the quarter in which the payment is made unless: (i) the bonus or lump sum payments meet the definition of vacation and severance pay in Sections R994-405-701 through R994-405-705; or (ii) within ten days of the issuance of the monetary determination, the claimant requests apportionment to the calendar quarters in which the remuneration was earned as provided by Subsection 35A-4-401(7). R994-401-203. Retirement or Disability Retirement Income. (1) As used in this section, "retirement benefits" means any retirement benefits, Social Security, pension, or disability retirement pay. (2) Except as provided in Subsection R994-401-203(3), a claimant's WBA will be reduced by 100% of any retirement benefits received by the claimant. The payment of retirement benefits must satisfy each of the following conditions. (a) Base Period Employer Plan. (i) Retirement benefits must be from a plan contributed to by a base period employer. (ii) Social Security payments are counted if a base period employer contributed to Social Security even if the Social Security payment is not based on employment during the base period. (b) Basis for Receipt of Retirement Benefits. (i) The claimant: (A) must receive retirement benefits based on prior employment; and (B) qualify for retirement benefits because of any combination of the following: (I) age; (II) length of service; or (III) disability, if the disability benefits are based, at least in part, on length of service. (ii) A claimant's WBA will not be reduced by the claimant's receipt of: (A) benefits from asavings plan, such as a 401(k) or IRA; (B) workers' compensation for: (I) temporary disability; or (II) black lung disability; (C) benefits from the Department of Veterans Affairs; (D) benefits received as a spouse or beneficiary; or (E) benefits payable to the claimant's former spouse if the paying entity pays: (I) the former spouse directly; and (II) pursuant to court order or a signed, stipulated agreement in accordance with the law. (c) Periodic Payments. Retirement benefits must be paid in periodic payments and not in a lump sum. Lump sum payments, even if drawn from the employer's contributions to a fund established for retirement payments, are not treated as severance pay under Subsection 35A-4-405(7). (d) Payable During the Benefit Year. Retirement benefits must be payable during the benefit year. Except as provided in Subsection (iii), a claimant's WBA will not be reduced if the claimant is eligible for, but not receiving, retirement income. (i) If the claimant subsequently receives a retroactive payment of retirement benefits which would have resulted in a reduction of unemployment insurance benefits, an overpayment will be established. The period of time the payment represents, not the time of the receipt, is the determining factor. (ii) An assumption that a claimant is entitled to receive retirement benefits, even if correct, is not a sufficient basis to recompute the WBA. (iii) A reduction of the claimant's WBA will be made if the claimant: (A) has applied for retirement benefits; (B) expects to be determined eligible for a specific amount attributable to weeks when unemployment insurance benefits are payable; and (C) is only awaiting receipt of retirement benefits. (3) For claims with an effective date: (a) on or after July 4, 2004, and on or before December 11, 2010, the claimant's WBA will be reduced by 50% for Social Security retirement benefits received by the claimant; and (b) on or after December 12, 2010, the claimant's WBA will not be reduced for Social Security retirement benefits. (4) A claimant who may be eligible for retirement benefits, but does not apply until after unemployment insurance benefits have been paid, will be at fault for any overpayment resulting from a retroactive payment of retirement benefits. (5) The formula for recomputation of the MBA in the event a claimant begins receiving retirement income after the beginning of the benefit year is found in Subsection 35A-4-401(2)(d). The recomputation is effective with the first full calendar week in which the claimant is eligible to receive applicable retirement benefits or adjustments to those benefits. R994-401-301. Partial Payments. (1) Earnings and WBA. (a) A claimant's earnings that are equal to or less than 30% of the WBA will not result in a reduction of the WBA. (b) A claimant's gross weekly earnings over 30% of the WBA, but less than the WBA, will be deducted dollar for dollar from the WBA in the week in which it was earned. (c) A claimant who earns less than the WBA and files a claim may be credited with a waiting week, or paid a partial payment. (d) A claimant who earns equal to or more than the WBA will not be credited with a waiting week nor be eligible for any partial payment for that week. (2) All work and earnings from all sources must be reported on a weekly basis. (3) Earnings are reportable in the week the work is performed which may be different from the week payment is received. If a claimant receives payment for commission sales, or other periodic earnings, the income must be attributed to, and reported in, the week when the work was performed. (4) Reportable earnings which a claimant must report on the weekly claim include all wages, remuneration, or compensation for services even if the employer is not required to pay contributions on these wages. R994-401-302. Liability of Part-time Concurrent Reimbursable Employers When There Is No Job Separation from the Part-Time Reimbursable Employer. (1) Nonseparating Part-Time Employers. (a) An employer is considered a "nonseparating part-time reimbursable employer" if: (i) the claimant: (A) worked for two or more employers, including the employer, during the base period; (B) is separated from one or more of the other employers; and (C) continues in regular part-time work with the employer; and (ii) the employer is a reimbursable employer. (b) A nonseparating part-time employer will not be liable for benefit costs if: (i) the claimant earned wages from the nonseparating part-time employer within seven days before the date the claim was filed; (ii) the claimant is not working on an "on call" basis; (iii) the claimant's hours of work have not been reduced; and (iv) the nonseparating part-time employer makes a request that it not be liable for benefit costs within ten days of the first notification of the nonseparating part-time employer's potential liability. (2) The claimant's WBA will be determined on the basis of the total base period employment and earnings, however, earnings from the nonseparating part-time employer will be excluded from the calculation of the MBA. (3) The nonseparating part-time employer will be liable to pay the proportionate amount of unemployment insurance benefits paid to the claimant if: (a) the claimant is later separated from the nonseparating part-time employer within the benefit year; or (b) the claimant's hours of work are reduced below the customary number of hours worked during the base period. (4) A new monetary determination may be made at the request of the claimant and will include all base period wages. The effective date of the revised monetary determination will be the first day of the week in which the request is made. See Section R994-307-101 for rules concerning contributory employers. R994-401-303. Income the Claimant Must Report While Receiving Unemployment Insurance Benefits. (1) All payments, whether an hourly wage, salary, or commission, paid for the performance of any service shall be reportable unless specifically identified as an exception in Section R994-401-304 or R994-401-305. (2) Gratuities or tips paid directly to an employee by a customer or the employer for a service provided are reportable. R994-401-304. Income Which May Be Reportable Under Certain Circumstances. (1) A bonus is a payment given to an employee in addition to usual wages. (a) A bonus paid as a direct result of past performance of service for a specific period before the separation is not reportable with respect to any week after the separation. (b) If the payment is made contingent upon termination it will be considered a severance payment. (c) Payments given at the time of separation that are based on years of service are reportable severance payments pursuant to with Subsection 35A-4-405(7). (2) If a claimant is hired to start working on a certain day and the employer puts the claimant on the payroll as of that date, the claimant is considered employed and those wages are reportable, even if the work is not available as of that date. (3) Payment made in consideration of training that is required by the employer is considered to be reportable income unless shown to be: (a) expenses necessary for school, including expenses for tuition, fees, and books; (b) travel expenses; (c) actual costs for room and board that are necessary expenses for the schooling; or (d) exempt from income tax liability. (4) Payment to a claimant under a contract is reportable income if: (a) the payment is made for the express purpose of the claimant's being available to an employer; and (b) there are limits placed upon the claimant: (i) as to how much earnings, if any, the claimant may earn while receiving payment; or (ii) on the time the claimant must be available to the employer. (5) Payments in kind are reportable, including the cash value for meals, lodging, or other payment unless the meals and lodging are excluded from the definition of wages by the Internal Revenue Service under the following conditions. (a) Meals. (i) Meals must be furnished: (A) on the business premises of the employer; (B) for the convenience of the employer; (C) without charge for substantial non-compensatory business reasons,; and (D) not intended as additional compensation. (ii) Substantial non-compensatory business reasons will be limited to meals which are provided: (A) to have employees available for emergency call; (B) to have employees with restricted lunch periods; or (C) because adequate eating facilities are not otherwise available. (b) Lodging. (i) Lodging must be furnished: (A) on the business premises of the employer; (B) as a condition of employment; and (C) for the convenience of the employer, for example, to have an employee available for call at any time. (6) Pensions that do not meet the criteria in Section R994-401-203 are not reportable income. R994-401-305. Income a Claimant Is Not Required to Report While Receiving Unemployment Insurance Benefits. Payments which are received for reasons other than the performance of a service are not reportable income, including the following examples. (1) Payments from corporate stocks and bonds. (2) Public service in lieu of payment of fines. (3) Fees paid for jury duty or as witness fees. (4) Amounts paid specifically, either as an advance or reimbursement, for bona fide, ordinary, and necessary expenses incurred or reasonably expected to be incurred in the business of the employer. If an accounting by the employee is not required by the employer for actual expenses, the Department shall not require itemization. (5) Payments specifically identifiable as not being provided for the rendering of service, including grants, public or private assistance, or other support payments. (6) Money or other considerations which are normally provided as a matter of course to immediate family members. (7) Income from investments. (8) Disability or permanent impairment awards under the Workers' Compensation Act. (9) Payment attributable to the value of any equipment owned by the claimant and necessary for the performance of the job. If there is no contract of hire or the contract does not delineate what portion is payable for the equipment, the Department will determine the claimant's wages based on the prevailing wage for similar work under comparable conditions. KEY: unemployment compensation, benefits Date of Last Change: April 21, 2022 Notice of Continuation: June 9, 2022 Authorizing, and Implemented or Interpreted Law: 35A-4-401(1); 35A-4-401(2); 35A-4-401(3); 35A-4-401(6)