(a) Determination.--The Division must determine the taxable wages for each calendar
year. An employer is not liable for contributions on wages paid to an employee in excess
of taxable wages. The taxable wages of an employee is an amount equal to the greater of the following:
(1) The federal taxable wages set in section 3306 of the Code.
(2) Fifty percent (50%) of the average yearly insured wage, rounded to the nearest
multiple of one hundred dollars ($100.00). The average yearly insured wage is the average weekly wage on the computation date
multiplied by 52.
(b) Wages Included.--The following wages are included in determining whether the amount
of wages paid to an individual in a single calendar year exceeds taxable wages:
(1) Wages paid to an individual in this State by an employer that made contributions
in another state upon the wages paid to the individual because the work was performed
in the other state.
(2) Wages paid by a successor employer to an individual when all of the following
a. The individual was an employee of the predecessor and was taken over as an employee
by the successor as a part of the organization acquired.
b. The predecessor employer paid contributions on the wages paid to the individual
while in the predecessor's employ during the year of acquisition.
c. The account of the predecessor is transferred to the successor.
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