Chapter 4141-9 Wages and Remuneration
For purposes of all wage, contribution and quarterly payroll reports required to be filed with the director pursuant to Chapter 4141. of the Revised Code and for purposes of contribution payments, wages shall be reported for the calendar quarter in which any payday occurs. A payday occurs when the payment is credited to or set apart for the employee and is available to such employee on demand.
119.032 review dates:
Promulgated Under: 4141.14
Statutory Authority: 4141.13
Rule Amplifies: 4141.13, 4141.20, 4141.23, 4141.241
Prior Effective Dates: 1/1/72, 7/3/86, 6/19/87
Contributions shall be paid on the wages defined in division (G) of section 4141.01 of the Revised Code, whenever liability in this or any other state has been established, and shall not be prorated over the entire calendar year or any part thereof. The limit on taxable wages set forth in division (G) of section 4141.01 of the Revised Code applies only to the remuneration paid by each employer to each individual. The limit is an exemption earned by each contributory employer, and the individual's other such employers cannot share in the exemption. In case it is determined that there has been a successorship within the calendar year, the wages of any employee upon which the predecessor has paid contributions shall be included in computing the taxable wages.
(A) Remuneration includes, but is not limited to, payment on the basis of piecework, or a percentage of profits, and it may be paid hourly, daily, weekly, monthly, annually, or based on any other measurement of time.
(B) Remuneration may be paid in cash and may be denominated by terms such as vacation pay or allowance, separation pay, holiday pay, paid absence allowance, downtime paid absence allowance, or short workweek pay. Remuneration may also be paid in items other than cash, such as goods, food, lodging, and clothing. The value of meals furnished to an employee shall not be deemed remuneration if two tests are met: (1) the meals are furnished on the business premises of the employer, and (2) the meals are furnished for the convenience of the employer. In addition, the value of lodging furnished to an employee shall not be deemed remuneration if three tests are met: (a) the lodging is furnished on the business premises of the employer, (b) the lodging is furnished for the convenience of the employer, and (c) the employee is required to accept such lodging as a condition of the employment. If the meals and/or lodging are furnished for a substantial noncompensatory business reason, they will be deemed furnished for the convenience of the employer, even though they are also furnished for a compensatory reason.
(C) Ordinarily, facilities or privileges (such as entertainment, medical services, or so-called courtesy discounts on purchases) furnished or offered by an employer to its employees generally are not considered as remuneration if they are of relatively small value and are offered or furnished by the employer merely as a means of promoting the health, goodwill, contentment, or efficiency of its employees. Parking facilities at the place of employment, furnished by the employer, are not considered to be remuneration. The valuation of meals and lodging is provided pursuant to rule 4141-9-09 of the Administrative Code.
(A) Remuneration in the form of holiday pay will be applied to the week during which the holiday occurs as specified by state or national declaration, regardless of when such remuneration is actually received. If, however, there exists a written labor-management agreement to observe a holiday on a date other than the one specified by state or national declaration, the holiday pay will be applied to the week during which the date specified in the agreement occurs.
(B) Remuneration in the form of holiday pay is subject to reduction from benefits otherwise payable and subject to the twenty per cent exclusion provided under division (C) of section 4141.30 of the Revised Code.
Institutions of higher education and educational institutions shall, in submitting the quarterly report of wages, report for each employee a number of weeks that includes the number of calendar weeks within the quarter in which services were performed, plus the number of calendar weeks within the quarter in which no services were performed but to which remuneration, as defined in rule 4141-9-04 of the Administrative Code, other than wages, was allocated.
The number of weeks reported for each employee on each quarterly report of wages shall not exceed the number of calendar weeks within the calendar quarter.
(A) Every employer shall submit quarterly reports of wages and weeks. The total number of weeks that must be reported for each employee must equal the number of calendar weeks within the quarter in which the employee performed services, plus the number of calendar weeks within the quarter in which no services were performed but to which remuneration was allocated.
(B) The number of weeks reported shall not exceed the number of calendar weeks in the quarter.
Remuneration in lieu of notice is a continuation of wages for a designated period after termination of employment. Remuneration in lieu of notice constitutes wages for the designated payment period, is subject to contributions, and shall be deemed to be remuneration for the purposes of establishing a qualifying week and a benefit year.
(A) When the cash value of meals and/or lodging furnished an employee is fixed under the terms of a bona fide written agreement between the employer and the employee, the amount so agreed upon shall be deemed the cash value of such meals and/or lodging.
(B) In the absence of a bona fide written agreement between an employer and an employee fixing the cash value of meals and/or lodging furnished, remuneration in the form of meals and lodging shall be on the following basis: breakfast, seven dollars; lunch, eight dollars; dinner, fifteen dollars; lodging per day, sixty dollars.
(C) This rule is not applicable to an individual performing services as a domestic or agricultural worker. Liability for these workers is determined solely on cash remuneration.
(D) The value of meals and lodging which is not considered to be remuneration is provided in rule 4141-9-04 of the Administrative Code.
(A) Amounts paid by an employer as allowances or reimbursements for traveling in the course of the employer's trade or business shall be considered remuneration if such amounts exceed costs actually incurred by the individual. Travel expenses must be detailed in current documentation maintained by the employer and employees and such documentation shall be available for inspection by the director as a basis upon which to exclude from or include amounts paid as remuneration.
(B) The fair market value of automobiles and other vehicles provided by an employer when used for personal use by an employee, shall be considered remuneration. The "fair market value" is the amount that an individual would have to pay in an arm's-length transaction to acquire the use of the particular vehicle in the area in which the vehicle is purchased or leased.
(A) "Retroactive pay award" means any adjustment in the amount of remuneration paid to an individual as the result of the resolution of a dispute as to remuneration for services provided by the individual in his or her base period or benefit year, which was not considered remuneration for services performed in the determination of the validity of the individual's application for unemployment benefits or in determining unemployment compensation amounts due based on his or her weekly claims for benefits.
(B) In the event that a retroactive pay award results in the adjustment of remuneration paid to individuals for services performed during weeks in their base periods or benefit years, the employers and employees who are parties to the dispute shall report the terms of such retroactive pay awards to the director no later than the last day of the first month following the close of the calendar quarter in which payment pursuant to the retroactive pay award was made.
(C) Retroactive pay awards may be allocated under the terms of the award or by agreement of the parties to the dispute to weeks in the base period or benefit year of individuals whose remuneration is to be adjusted pursuant to the award. If no allocation to weeks is provided by the provisions of such award or by agreement of the parties, the director will allocate the total adjustment provided by the award equally among the weeks during the period for which the dispute with respect to remuneration was at issue.
(D) No employer shall deduct from a back pay award any benefits or reimbursements made under Chapter 4141. of the Revised Code when such back pay award payments are made for the weeks compensated by the payment of unemployment compensation. Contributory employers shall notify the director of the payment of the back pay award, setting forth the weeks covered by the back pay award, and the director shall credit such contributory employer's account for any offset to which it may be entitled. Pursuant to division (D) of section 4141.24 of the Revised Code, reimbursing employers are not entitled to an offset.
R.C. 119.032 review dates: 12/15/2011 and 04/01/2017
Promulgated Under: 4141.14
Statutory Authority: 4141.13
Rule Amplifies: 4141.01, 4141.28, 4141.29
Prior Effective Dates: 12/30/91, 1/15/01