This section of the act outlines the provisions under which an employing unit can voluntarily elect to be an employer for payment of state unemployment taxes.

Any type of employment by an employing unit, with the exception of Religious Service and Service by a Relative, can be volunteered under this section. A sole proprietor cannot volunteer to pay taxes on the owner's or spouse's wages, wages paid to their parents or wages paid to their children under the age of 21. Partners cannot elect to pay taxes on their own wages either.

Only employing units, who are not liable under any other provision, can volunteer. Employers who meet 201.021, 201.022, 201.023, 201.025, 201.026, 201.027, and 201.028 liability requirements will be established under those subsections.

A situation may arise in which an employer wishes to volunteer in order to get the offset credit against their Federal Unemployment Tax. Whereas their employment might be exempt under TUCA, federal law might require them to pay FUTA tax. In this case the employer will be allowed to volunteer under 201.024.

Liability under this section of the law is based on a Status Report or the voluntary submission of an employer’s quarterly report and money.

The Status Report has to be signed on or after the first wages date and the Voluntary Election Section completed. An owner, officer, or partner, or authorized representative can sign the Status Report.

If the voluntary election section is not completed, and a telephone contact with the employer (owner, officer, partner, or authorized representative) concludes that the employer wants to volunteer, the examiner will set up the employer under 201.024. Place comments on FTC noting who you talked to and the effective year of the voluntary election.

An employer or authorized representative that voluntarily submits an employer’s quarterly report with wages under $1500.00 and money will be established under section 201.024. If the C-1 or C-1FR is received and no liability is indicated, the account can be established per report with money. This will also include a 501(c)(3).

If a C-1 is received and the volunteer section is completed check the SER screen. If the SER screen has reports posted prior to the year employer wants to volunteer and they do not meet liability, the reports should be deleted. This also includes 501(c)(3).

Never recommend or urge voluntary election of coverage. The decision should be made by the employer. If it appears that election is advisable, mention the matter to the employer, explain the necessary procedure, and let the employer make their own decision.

An employing unit can volunteer in the year for which he wants to volunteer, and no later than the first quarter of the following year. For example: an employer who pays wages on 01-01-08 has until March 31, 2009 to voluntarily elect coverage for 2008. An employer who started paying wages in December of 2008 would also have to volunteer by March 31, 2009.

An employer that is established under voluntary election based on a submitted employer’s quarterly report and money would also be established under the same guidelines.

A voluntary election is for a period of not less than two years. When the election is approved, the employing unit becomes an employer as of the date of approval, and thereafter is subject to all the provisions of the Act to the same extent as other employers. The employing unit will continue to be an employer until such time as an Application for Termination of Coverage is filed and approved. See Chapter 2 - “Termination of Coverage”.

If a signed Status Report is used to establish liability, use the signature date as the subject date. If the Status Report is signed but not dated, use the transaction date for the C-1 on the Transaction Log (TDO).

If a follow-up telephone call, written request, or email contact is used, use the date the request was made. If the account was established based on an employer’s quarterly report and money, use the TRN date on TDO.

An employer who submits a properly completed Status Report indicating 201.024 liability can rescind that election if:

1. The employer rescinds in writing, and
2. He rescinds before a Quarterly Report becomes due.

An employer who volunteered by phone can rescind if:

1. The employer rescinds in writing or by phone, and
2. The employer has not submitted any Employer's Quarterly Reports.

An employer whose account was established based on an employer's quarterly report and money can request that the election be reversed.  The account can be reversed back to statute if:

1. The employer requests the reversal in writing, and
2. No other liability exists.

An employer whose account was established 201.024 based on a quarterly report showing less than $1500.00 gross wages with remittance cannot be established in error unless:

• Employer was advised that liability was established based on the report and money submitted; and
  
  
• If employer, without being persuaded, determines they are not liable and indicates that the report was submitted in error, then close the account as established in error if no other liability is found. FTC comments should clearly indicate that employer wishes to retract that report and that no other liability will be met. Employer should also be advised that any other reports and money submitted will establish liability.

The account will be made liable using the STA screen. To classify an account liable under 201.024 using the STA screen: