To begin to control your unemployment costs, you must first understand how the state calculates your tax rate.  This diagram illustrates simply, how your tax rate is determined.

Tax Rate Determination

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 2nd Quarter 2016. The hours and wages reported by employers for a claimant in the green section would be considered potential chargeable employers.  (There are ways to request your account not be charged, please contact CCC for additional information.)

2.2016.BasePeriodChart

Once the state determines which employers are in the base period, they then may use one of four different methods to determine which employers are actually chargeable.

ChargeableEmployer

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 that you receive the determined tax rate notice for the following year. There are a few different methods that states may use to calculate your tax rate. Those are listed below.

TypesOfRates

For additional information regarding your tax rate or any other unemployment question, please contact CCC at 800.207.6926.


Contact CCC to see how we can save your organization time and money.
Contact our Sales Team
(800) 207-6926

Featured Videos

View All Videos

Latest News

Close

Sales

Your Name:*

Title:

Company Name:*

Company Address:

Company City:

Company State:

Company Zip:

Number of Employees:

Your Email:*

Phone Number:*

Fax Number:

Check the boxes below if you wish to receive information on any of the following:

Unemployment Cost ControlTax Credits & Incentives (WOTC)Employment / Wage Verification

Your Message:

Employment & Income Verfication

Your Name:*

Title:

Company Name:*

Company Address:

Company City:

Company State:

Company Zip:

Number of Employees:

Your Email:*

Phone Number:*

Fax Number:

Your Message: