§ 1326. Rate based on benefit experience
(a)(1) The Commissioner shall for each rate year compute a benefit ratio for each employer
who meets the requirements of section 1327 of this subchapter. For an employer whose
record has been chargeable with benefits throughout the three consecutive calendar
years immediately preceding the rate year for which the ratio is computed, the benefit
ratio shall be the quotient obtained by dividing the total benefits charged to the
employer’s record in those three years by the total of the employer’s taxable payrolls
for the same three-year period.
(2) For an employer whose record has been chargeable with benefits for at least one but
less than three consecutive calendar years immediately preceding the rate year for
which the ratio is computed, the benefit ratio shall be the quotient obtained by dividing
the total benefits charged to the employer’s record for the calendar year or years
by the total of the employer’s taxable payrolls for the same period.
(3) The contribution rate of each employer, not otherwise ineligible, who meets the requirements
of section 1327 of this subchapter, shall be determined under subsections (b) through
(g) of this section.
(b) The Commissioner shall prepare a schedule that lists all employers for whom a benefit
ratio has been computed pursuant to this section, in the order of their benefit ratios,
beginning with the lowest such ratio, and on which shall be shown with respect to
each such employer:
(1) the amount of the employer’s benefit ratio;
(2) the amount of the employer’s annual taxable payroll; and
(3) a cumulative total consisting of the amount of the employer’s annual taxable payroll
plus the amount of the annual taxable payrolls of all other employers preceding the
employer on the list.
(c) The Commissioner shall segregate employers so listed into classes in accordance with
the cumulative payrolls. The classes shall be determined by the cumulative payroll
percentage limits set forth in column B of the table set forth in subsection (e) of
this section. Each such class shall be identified by the rate class number in column
A that is opposite the figures in column B that represents the percentage limits of
each class. In the event an employer’s taxable payroll falls in more than one rate
class, the employer shall be assigned to the lower numbered rate class except that
no employer shall be assigned to a higher rate class than is assigned any other employer
with the same benefit ratio.
(d) The Commissioner shall compute a current fund ratio, and a highest benefit cost rate,
as follows:
(1) The current fund ratio shall be determined by dividing the available balance of the
Unemployment Compensation Fund on December 31 of the preceding calendar year by the
total wages paid for employment during that calendar year as reported by employers
by the following March 31.
(2)(A) The highest benefit cost rate is the highest annual ratio within the 10-year period
ending on the preceding December 31 of benefits paid, including the State’s share
of extended benefits, for taxpaying employers divided by total wages paid in covered
employment for taxpaying employers for the same period.
(B) Notwithstanding any provision of subdivision (A) of this subdivision (d)(2) to the
contrary, when computing the tax rate schedule to become effective on July 1, 2021
and on each subsequent July 1, the Commissioner shall calculate the highest benefit
cost rate without consideration of benefit payments made in calendar year 2020.
(e) The rate schedule shall be determined by dividing the current fund ratio by the highest
benefit cost rate. The applicable rate schedule shall be that schedule below the
resultant quotient that appears in column C of the following table:
| A. |
B. |
C. |
| |
|
|
IF THE RESULTING QUOTIENT IS: |
Rate
Class
|
% of Taxable
Payrolls
|
2.50
and
over
|
2.00
to
2.49
|
1.50
to
1.99
|
1.00
to
1.49
|
under
1.00
|
| |
From |
To |
I. |
II. |
III. |
IV. |
V. |
| _________________________________________ |
| 0 |
00.00 |
00.00 |
0.4% |
0.6% |
0.8% |
1.1% |
1.3% |
| 1 |
00.01 |
05.00 |
0.5 |
0.7 |
0.9 |
1.2 |
1.5 |
| 2 |
05.01 |
10.00 |
0.6 |
0.8 |
1.1 |
1.4 |
1.8 |
| 3 |
10.01 |
15.00 |
0.7 |
1.0 |
1.4 |
1.7 |
2.1 |
| 4 |
15.01 |
20.00 |
0.8 |
1.2 |
1.7 |
2.0 |
2.4 |
| 5 |
20.01 |
25.00 |
0.9 |
1.4 |
2.0 |
2.3 |
2.7 |
| 6 |
25.01 |
30.00 |
1.1 |
1.7 |
2.3 |
2.6 |
3.0 |
| 7 |
30.01 |
35.00 |
1.4 |
2.0 |
2.6 |
2.9 |
3.3 |
| 8 |
35.01 |
40.00 |
1.7 |
2.3 |
2.9 |
3.2 |
3.6 |
| 9 |
40.01 |
45.00 |
2.0 |
2.6 |
3.2 |
3.5 |
4.0 |
| 10 |
45.01 |
50.00 |
2.3 |
2.9 |
3.5 |
3.8 |
4.4 |
| 11 |
50.01 |
55.00 |
2.6 |
3.2 |
3.8 |
4.1 |
4.8 |
| 12 |
55.01 |
60.00 |
2.9 |
3.5 |
4.1 |
4.5 |
5.2 |
| 13 |
60.01 |
65.00 |
3.2 |
3.8 |
4.4 |
4.9 |
5.6 |
| 14 |
65.01 |
70.00 |
3.5 |
4.1 |
4.7 |
5.3 |
6.0 |
| 15 |
70.01 |
75.00 |
3.8 |
4.4 |
5.0 |
5.7 |
6.4 |
| 16 |
75.01 |
80.00 |
4.1 |
4.7 |
5.3 |
6.1 |
6.8 |
| 17 |
80.01 |
85.00 |
4.4 |
5.0 |
5.6 |
6.5 |
7.2 |
| 18 |
85.01 |
90.00 |
4.7 |
5.3 |
5.9 |
6.9 |
7.6 |
| 19 |
90.01 |
95.00 |
5.0 |
5.6 |
6.2 |
7.3 |
8.0 |
| 20 |
95.01 |
100.00 |
5.4 |
5.9 |
6.5 |
7.7 |
8.4 |
| _________________________________________ |
(f) The contribution rate to become effective on July 1 of each year shall be the rate
determined for that class into which the given employer is placed by application of
this section.
(g) If, subsequent to the assignment of rates of contribution for any rate year, the benefit
ratio of any employer is recomputed and changed, the employer shall be placed in that
position on the list that the employer would have occupied had the employer’s corrected
benefit ratio been shown on the list, but the altered position on the list shall not
affect the position of any other employer.
(h) In the determination of a rate schedule, only the wages paid by employers liable for
payment of contributions into the fund and benefit payments not reimbursable by employers
liable for payments in lieu of contributions shall be considered in the computation
of a current fund ratio and highest benefit cost rate. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 65, eff. Jan. 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1963, No. 106, § 2; 1965, No. 77, § 1; 1967, No. 159, § 1; 1969, No. 161 (Adj. Sess.); 1973, No. 31, § 1, eff. March 27, 1973; 1977, No. 64, § 14, eff. Jan. 1, 1977; 1983, No. 124 (Adj. Sess.), § 2; 2021, No. 51, § 9a, eff. June 1, 2021; 2023, No. 85 (Adj. Sess.), § 185, eff. July 1, 2024; 2025, No. 40, § 18, eff. July 1, 2025.)