§392-43 Authority to withhold contributions, rate of contribution, maximum weekly wage base. (a) Subject to the limitation set forth in subsection (b) an employer may deduct and withhold contributions, from each employee of one-half the cost but not more than .5 per cent of the weekly wages earned by the employee in employment and the employer shall provide for the balance of the cost of providing temporary disability benefits under this chapter over the amount of contributions of the employer's employees. Unless a different rule is prescribed by regulation of the director, the withholding period shall be equal to the pay period of the respective employee.

(b) Weekly wages for the purposes of this section shall not include:

(1) Wages earned by an employee in employment during any payroll period unless, during the fifty-two weeks immediately preceding such payroll period, the employee has earned wages of at least $400 and has been in employment for at least fourteen weeks during each of which the employee has received remuneration in any form for twenty or more hours; and

(2) Remuneration in excess of one fifty-second of the average annual wage in the State as determined for the preceding year pursuant to section 383-61(b) multiplied by the factor 1.21, which amount the director shall cause to be published annually prior to the first day of January following the determination.

(c) The contributions of the employees deducted and withheld from their wages by their employer shall be held in a separate fund or be paid to insurance carriers as premiums, for the purpose of providing benefits required by this chapter.

(d) The director shall have authority to prescribe by regulation the reports and information necessary to determine the cost of providing temporary disability benefits under this chapter, especially in the case of employers or employer associations providing such benefits by means of self-insurance, and to determine the procedures for the determination of such cost.

(e) An employee from whose wages amounts greater than those authorized by this chapter have been withheld by the employee's employer shall be entitled to a refund or credit of the excess as prescribed by regulation of the director.

(f) The contributions of employees deducted and withheld in amounts greater than those authorized by this chapter, shall be deposited in the trust fund for disability benefits if such employees are no longer with the employer and cannot be located. A refund of the excess shall be paid from the trust fund for disability benefits to the employees when they are located or if such employees remain unlocated for a period of two years from the date of deposit, such moneys shall become a part of the trust fund.

(g) If an employer fails to provide coverage for the employer's employees after deducting and withholding contributions from the employer's employees as prescribed by this chapter, the employer shall deposit such contributions in the [trust fund for disability benefits]. [L 1969, c 148, pt of §1; am L 1971, c 109, §1(f); gen ch 1985; am L 1999, c 30, §2; am L 2013, c 100, §8]