288.037. Indian tribes considered employers for purposes of unemployment compensation payments, when--definitions--requirements.
Indian tribes considered employers for purposes of unemploymentcompensation payments, when--definitions--requirements.
288.037. 1. The term "employer" shall include any Indian tribe forwhich service in employment as defined in section 288.034 is performed.
2. The term "employment" shall include service performed in theemploy of an Indian tribe, as defined in Section 3306(u) of the FederalUnemployment Tax Act (FUTA), provided such service is excluded fromemployment as defined in FUTA solely by reason of Section 3306(c)(7), FUTA,and is not otherwise excluded from employment under this chapter. Forpurposes of this section, the exclusions from employment in subsection 9 ofsection 288.034 shall be applicable to services performed in the employ ofan Indian tribe.
3. Benefits based on service in employment defined in this sectionshall be payable in the same amount, on the same terms, and subject to thesame conditions as benefits payable on the basis of other service subjectto this chapter. The provisions of subsection 3 of section 288.040pertaining to services performed at an educational institution while in theemploy of an educational service agency shall apply to services performedin an educational institution or educational service agency wholly ownedand operated by an Indian tribe or tribal unit.
4. (1) Indian tribes or tribal units, including subdivisions,subsidiaries, or business enterprises wholly owned by such Indian tribes,subject to this chapter shall pay contributions under the same terms andconditions as all other subject employers, unless they elect to pay intothe state unemployment fund amounts equal to the amount of benefitsattributable to service in the employ of the Indian tribe. An Indian tribeand all tribal units of such Indian tribe shall be jointly and severallyliable for any and all contributions, payments in lieu of contributions,interest, penalties, and surcharges owed by the Indian tribe and all tribalunits of such Indian tribe.
(2) Indian tribes electing to make payments in lieu of contributionsmust make such election in the same manner and under the same conditions asprovided in subsection 3 of section 288.090 pertaining to state and localgovernments and nonprofit organizations subject to this chapter. Indiantribes will determine if reimbursement for benefits paid will be elected bythe tribe as a whole, by individual tribal units, or by combinations ofindividual tribal units. Termination of an Indian tribe's coveragepursuant to subdivision (5) of this subsection shall terminate the electionof such Indian tribe and any tribal units of such Indian tribe to makepayments in lieu of contributions.
(3) Indian tribes or tribal units will be billed for the full amountof benefits attributable to service in the employ of the Indian tribe ortribal unit on the same schedule as other employing units that have electedto make payments in lieu of contributions.
(4) Any Indian tribe or tribal unit that elects to become liable forpayments in lieu of contributions shall be required, prior to the effectivedate of its election, to post with the division a surety bond issued by acorporate surety authorized to do business in Missouri in an amountequivalent to the contributions or payments in lieu of contributions forwhich the Indian tribe or tribal unit was liable in the last calendar yearin which it accrued contributions or payments in lieu of contributions, orone hundred thousand dollars, whichever amount is the greater, to ensureprompt payment of contributions or payments in lieu of contributions,interest, penalties, and surcharges for which the Indian tribe or tribalunit may be, or becomes, jointly and severally liable pursuant to thischapter.
(5) Failure of the Indian tribe or tribal unit to maintain therequired surety bond, including the posting of an additional surety bond ora replacement surety bond within ninety days of being directed by thedivision, will cause services performed for such Indian tribe to not betreated as employment for purposes of subsection 2 of this section.
(6) The director may determine that any Indian tribe that losescoverage under subdivision (5) of this subsection may have servicesperformed for such tribe again included as employment for purposes ofsubsection 2 of this section if all contributions, payments in lieu ofcontributions, penalties, surcharges, and interest have been paid. Uponreinstatement of coverage under this subdivision, an Indian tribe or anytribal unit may elect, in accordance with the provisions of thissubsection, to make payments in lieu of contributions.
(7) If an Indian tribe fails to maintain the required surety bond byposting an additional surety bond or a replacement surety bond withinninety days of being directed by the division, the director willimmediately notify the United States Internal Revenue Service and theUnited States Department of Labor.
(8) Notices of surety bond deficiency to Indian tribes or theirtribal units shall include information that failure to post an additionalsurety bond or a replacement surety bond within the prescribed time frame:
(a) Will cause the Indian tribe to be liable for taxes under FUTA;
(b) Will cause the Indian tribe to be excepted from the definition ofemployer, as provided in subsection 1 of this section, and services in theemploy of the Indian tribe, as provided in subsection 2 of this section, tobe excepted from employment.
5. (1) Failure of the Indian tribe or tribal unit to make requiredpayments, including assessments of interest and penalty, within ninety daysof receipt of the bill will cause services performed for such Indian tribeto not be treated as employment for purposes of subsection 2 of thissection.
(2) The director may determine that any Indian tribe that losescoverage under subdivision (1) of this subsection may have servicesperformed for such tribe again included as employment for purposes ofsubsection 2 of this section if all contributions, payments in lieu ofcontributions, penalties, surcharges, and interest have been paid.
(3) If an Indian tribe fails to make payments required under thissection, including assessments of interest and penalty, within ninety daysof a final notice of delinquency, the director will immediately notify theUnited States Internal Revenue Service and the United States Department ofLabor.
6. Notices of payment and reporting delinquency to Indian tribes ortheir tribal units shall include information that failure to make fullpayment within the prescribed time frame:
(1) Will cause the Indian tribe to be liable for taxes under FUTA;
(2) Will cause the Indian tribe to be excepted from the definition ofemployer, as provided in subsection 1 of this section, and services in theemploy of the Indian tribe, as provided in subsection 2 of this section, tobe excepted from employment.
7. Extended benefits paid that are attributable to service in theemploy of an Indian tribe and not reimbursed by the federal governmentshall be financed in their entirety by such Indian tribe.
(L. 2003 S.B. 194 & 189)Effective 5-08-03