CHAPTER 282 - UNEMPLOYMENT COMPENSATION COMMISSION LAW
AN ACT TO AMEND AN ACT KNOWN AND CITED AS THE "UNEMPLOYMENT COMPENSATION LAW," BEING CHAPTER 258 OF THE LAWS OF DELAWARE, 1937, AS AMENDED, BY CHANGING THE DEFINITION OF "WAGES" AND BY CHANGING THE BASIS OF CONTRIBUTIONS FROM "WAGES PAYABLE" TO "WAGES PAID."
Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met:
Section 1. That Section 2(n) of Chapter 258 of the Laws of Delaware, 1937, as amended (known and cited as the "Unemployment Compensation Law"), be and the same is hereby amended by striking out all of the said Section 2(n) and inserting in lieu thereof the following:
2 (n) "Wages" means all remuneration for personal services, including commissions and bonuses and the cash value of all remuneration in any medium other than cash. Gratuities customarily received by an individual in the course of his work from persons other than his employing unit shall be treated as wages received from his employing unit. The reasonable cash value of remuneration in any medium other than cash, and the reasonable amount of gratuities, shall be estimated and determined in accordance with rules prescribed by the commission; Provided that the term "Wages" shall not include:
(1) For the purposes of sections 3 (b), 3(e), 4(e), and 7 of this act that part of remuneration which, after remuneration equal to $3,000 has become payable to an individual by an employer with respect to employment during the year 1940, becomes payable to such individual by such employer with respect to employment during the year 1940; remuneration payable with respect to employment during the fourth calendar quarter of the year 1939, but actually or constructively paid during the year 1940, or thereafter, shall be deemed to be remuneration 'payable with respect to employment during the year 1940' for the purposes of this paragraph.
(2) For the purposes of sections 3 (b), 3(e), 4(e), and 7 of this act that part of remuneration which, after remuneration equal to $3,000 has been paid to an individual by an employer with respect to employment during any calendar year, is paid to such individual by such employer with respect to employment during such calendar year and after December 31, 1940.
(3) The amount of any payment with respect to services performed after December 31, 1940 to, or on behalf of, an individual in its employ under a plan or system established by an employing unit which makes provision for individuals in its employ generally or for a class or classes of such individuals (including any amount paid by an employing unit for insurance or annuities, or into a fund, to provide for any such payment), on account of (A) retirement, or (B) sickness or accident disability, or (C) medical and hospitalization expenses in connection with sickness or accident disability, or (D) death, provided the individual in its employ (i) has not the option to receive, instead of provision for such death benefit, any part of such payment or, if such death benefit is insured, any part of the premiums (or contributions to premiums) paid by his employing unit, and (ii) has not the right, under the provisions of the plan or system or policy of insurance providing for such death benefit, to assign such benefit or to receive a cash consideration in lieu of such benefit either upon his withdrawal from the plan or system providing for such benefit or upon termination of such plan or system or policy of insurance or of his services with such employing unit;
(4) The payment by an employing unit (without deduction from the remuneration of the individual in its employ) of the tax imposed upon an individual in its employ under section 1400 of the Federal Internal Revenue Code with respect to services performed after December 31, 1940; or
(5) Dismissal payments, after December 31, 1940, which the employing unit is not legally required to make.
Section 2. That Section 7 (a) of Chapter 258 of the Laws of Delaware, 1937, as amended (known and cited as the "Unemployment Compensation Law"), be and the same is hereby amended by striking out all of the said Section 7 (a) and inserting in lieu thereof the following:
(a) Payment — (1) On and after January 1, 1937, contributions shall accrue and become payable by each employer for each calendar year in which he is subject to this act, with respect to wages for employment. Such contributions shall become due and be paid by each employer to the commission for the fund in accordance with such regulations as the commission may prescribe, and shall not be deducted, in whole or in part, from the wages of individuals in such employer's employ.
(2) In the payment of any contributions, a fractional part of a cent shall be disregarded unless it amounts to one-half cent or more, in which case it shall be increased to 1 cent.
Section 3. That Section 7 (b) of Chapter 258 of the Laws of Delaware, 1937, as amended (known and cited as the "Unemployment Compensation Law"), be and the same is hereby amended by striking out all of the said Section 7 (b) and inserting in lieu thereof the following:
(b) Rate and base of contributions (1) Each employer shall pay contributions equal to the following percentages of wages payable by him with respect to employment:
(A) 1.8 per centum with respect to employment occurring during the calendar year 1937.
(B) 2.7 per centum with respect to employment occurring during the calendar years 1938, 1939, and 1940.
(2) Each employer shall pay contributions equal to 2.7 per centum of wages paid by him during the calendar year 1941, and during each calendar year thereafter, with respect to employment occurring after December 31, 1940, except as may be otherwise prescribed in subsection (c) of this section.
Approved January 9, 1941.