Most states determine tax rates based on activity from July 1- June 30th each year.  The following chart gives a brief explanation of what the steps are that a state may use to determine an employer’s tax rate for the following calendar year.

Tax Rate Determined

 

 

 

 

 

 

 

 

 

 

 

While each state has the same steps in determining a tax rate, there are various  calculations used by state unemployment agencies to determine what each employer’s tax rate will be. The following chart outlines how each state calculates employer tax rates.

 

State Rate Calculation

 Upon a claimant receiving benefits, state agencies must then determine which employers will be charged. This means they determine which employers experience accounts will receive the charges made to the claimant. Most state agencies use a base period to determine which employers are potentially responsible for these payments. Below is the current base period if a claimant filed benefits during the 1st Quarter 2013. The hours and wages reported by employers for a claimant in the blue section would be considered potential chargeable employers. (There are ways to request your account not be charged, please contact CCC for additional information.)

Base Period 3-15

There are also other ways state agencies determine which employer(s) are chargeable:

Chargeable Employer

 If the state has identified your organization as a chargeable employer, the charges are then used to calculate your tax rate for the follow tax season. Most states have a fiscal year that runs from July-June 30th of each year, but it may not be until 4th quarter than you receive the determined tax rate notice for the following year.

For additional information regarding your tax rate or any other unemployment question, please contact CCC via email info@corporatecostcontrol.com or by telephone  (800) 207-6926.


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