How is an experience tax rate computed?
Annual experience tax rates are computed as of October 1 to be effective for the following calendar year, and notices of the rates are mailed to employers in December. An employer’s benefit ratio is the result obtained by dividing the total benefits paid to his former employees and charged to his account during the preceding 36 months by the employer’s total taxable payroll on which taxes have been timely paid for the same 36 months. If the employer has less than 36 months but at least four calendar quarters throughout which his account has been chargeable with benefits, his computation will be based on all calendar quarters immediately preceding the computation date. The replenishment ratio is the result obtained by dividing the total effectively charged benefits paid during the 12 month period preceding the October 1 rate computation date plus one-half of the ineffectively charged benefits for the same period by the total amount of benefits paid for the same period that are effective
