How does the Trust calculate how much each member deposits into its reserve account?
The experience rating process used by the Trust has been developed and refined over the years to reflect the experience of each member, allowing for maximum control of costs through controlling claims. The calculated deposit includes amounts for estimated claims and operating expenses as well as an amount calculated to build the member’s reserve account to the targeted goal over 10 years. Since reimbursing employers in most states have no other reason to calculate taxable payroll for unemployment purposes, we base our calculations on gross payroll. We also bill for deposits in equal quarterly amounts, instead of billing for a larger deposit in the first quarter or two of the year. To stabilize member deposits and simplify the member accounting process, we calculate a net annual deposit, including an offset for member reserve account investment income.
