1. (1) Once an employing unit is determined liable it shall remain liable until it is terminated under one of the provisions provided by law:

   1. (a) Approval of a written request from the employer for termination of coverage.
   2. (b) Employment ceases due to the transfer of his business to a successor-in-interest.

   3. (c) As of a January 1 following two (2) consecutive calendar years during which the employer employed no individuals in covered employment.

      An employer who has no employees or payroll temporarily or has ceased to operate his business will not be terminated unless one of the above criteria is met but can, be administratively inactivated upon the recommendation by the department or upon the written request of the employer. Upon the determination and approval of the recommendation or request, the department shall notify the employer by written notice sent to his last known address of record. The notice shall inform the employer of his inactive status, that no quarterly reporting forms will be forthcoming, and he is to notify the Department immediately should he resume paying wages in Alabama. If, at any time prior to termination of coverage, an inactive account is found to have paid wages employed individuals in any quarter which causes the termination criteria not to have been met, such employer account shall be reactivated (reassigned) with a contribution rate computed by the department. The employer shall be sent a written notice of his reactivation (reassignment) and contribution rate to his address of record. All appropriate quarterly reports and contributions will be obtained.

2. (2) An employing unit who meets one of the above criteria for termination of account and remains delinquent for either quarterly reports and/or contributions for periods prior to termination will be legally terminated.

3. (3) If an Indian tribe fails to make required payments, including contributions, payments in lieu of contributions, or payment of penalties or interest, or failure to post a required payment bond, within 90 days of a final notice of delinquency, the Director will immediately notify the United States Internal Revenue Service and the United States Department of Labor.

   1. (a) However, administrative procedure for collections of delinquent reports and/or contributions will continue to be pursued by the Department of Industrial Relations until disposition is made of the delinquency.

Author: James Webb, Unemployment Compensation Division Director

Statutory Authority: Code of Ala. 1975, §§25-2-7, 25-2-8, 25-4-111.

History: Amended: April 1, 1983, May 6, 1983. Amended: Filed October 3, 2002; effective November 7, 2002.