23-730. Variation and adjustment of contribution rates
For calendar year 1985 and each calendar year thereafter, variations from the
standard rate of contribution shall be determined in accordance with the following
requirements:
1. If the total of all an employer's contributions, paid on or before July 31 of
the preceding calendar year with respect to wages paid by the employer prior to July 1 of
the preceding calendar year, equals or exceeds the total benefits that were chargeable to
the employer's account and were paid prior to July 1 of the preceding calendar year, with
respect to weeks of unemployment beginning prior to July 1, the employer's contribution
rate for the ensuing calendar year subject to the adjustments provided by this section
shall be determined from the employer's positive reserve ratio in accordance with the
table provided in this paragraph. An employer's positive reserve ratio is the percentage
resulting from dividing the employer's reserve surplus, which is the excess of
contributions paid over benefits charged by the employer's average annual taxable
payroll. If an employer's reserve equals zero, the employer's contribution rate for the
ensuing calendar year shall be two and seven-tenths per cent, subject to the adjustments
provided by this section.
Positive Reserve Ratio Contribution Rate
Less than 3% 2.60%
At least 3% but less than 4% 2.40%
At least 4% but less than 5% 2.15%
At least 5% but less than 6% 1.90%
At least 6% but less than 7% 1.65%
At least 7% but less than 8% 1.40%
At least 8% but less than 9% 1.15%
At least 9% but less than 10% 0.90%
At least 10% but less than 11% 0.65%
At least 11% but less than 12% 0.40%
At least 12% but less than 13% 0.15%
13% or more 0.02%
2. If the total of all an employer's contributions, paid on or before July 31 of
the preceding calendar year with respect to wages paid by the employer prior to July 1 of
the preceding calendar year, is less than the total benefits that were chargeable to the
employer's account and were paid prior to July 1 of the preceding calendar year, with
respect to weeks of unemployment beginning prior to July 1, the employer's contribution
rate for the ensuing calendar year shall be determined from the employer's negative
reserve ratio in accordance with the table provided in this paragraph, subject to the
rate adjustment provided in paragraph 3, except that the rate is subject to increases but
not to reduction. An employer's negative reserve ratio is the percentage resulting from
dividing the employer's reserve deficit, which is the excess of benefits charged over
contributions paid, by the employer's average annual taxable payroll. The table
applicable to rate computation for calendar year 1987 and each calendar year thereafter
is:
Negative Reserve Ratio Contribution Rate
Less than 3% 2.85%
At least 3% but less than 4% 3.05%
At least 4% but less than 5% 3.30%
At least 5% but less than 6% 3.55%
At least 6% but less than 7% 3.80%
At least 7% but less than 8% 4.05%
At least 8% but less than 9% 4.30%
At least 9% but less than 10% 4.55%
At least 10% but less than 11% 4.80%
At least 11% but less than 12% 5.05%
At least 12% but less than 13% 5.30%
13% or more 5.40%
3. The ratio of the total assets of the fund on July 31 as defined by department
regulation to the total taxable payrolls for the twelve month period immediately
preceding the computation date shall determine the required income rate for the ensuing
calendar year in accordance with the following fund control schedule:
Fund Ratio Required Income Rate
12.0% or more 0.40%
At least 10.0% but less than 12.0% 0.50%
At least 9.5% but less than l0.0% 0.60%
At least 9.0% but less than 9.5% 0.70%
At least 8.5% but less than 9.0% 0.80%
At least 8.0% but less than 8.5% 0.90%
At least 7.5% but less than 8.0% 1.00%
At least 7.0% but less than 7.5% 1.10%
At least 6.5% but less than 7.0% 1.20%
At least 6.0% but less than 6.5% 1.30%
At least 5.5% but less than 6.0% 1.40%
At least 5.0% but less than 5.5% 1.50%
At least 4.5% but less than 5.0% 1.70%
At least 4.0% but less than 4.5% 1.80%
At least 3.5% but less than 4.0% 2.00%
At least 3.0% but less than 3.5% 2.20%
Less than 3.0% 2.40%
For each calendar year the department shall compute the estimated required tax yield from
employers that is the product of the total taxable payrolls for the twelve month period
immediately preceding the computation date and the applicable required income rate from
the fund control schedule less the interest earned on monies in the fund during the
twelve month period immediately preceding the computation date and credited to the fund
by the United States treasury on or before October 31 following the computation
date. Except as otherwise provided by statute, the rates in paragraphs 1 and 2 shall be
adjusted proportionately if the estimated required tax yield from employers exceeds or is
less than the estimated yield from the rates without adjustment.
4. In computing an employer's adjusted rate as provided by paragraph 3, the
adjusted rate shall be calculated to the nearest one-hundredth per cent. An employer's
adjusted rate shall not be less than two one hundredths per cent.
|