This component takes into consideration the amount of unemployment benefits charged to an employer's account over a 60-month (5-year) period, ending the previous June 30.

For example, the 60-month period used to compute the tax rate for calendar year 2003 (as shown on the tax rate notice mailed in February of 2003) would be the 60-month period ending June 30, 2002.

This amount is then divided by all of the taxable payroll during that same 60-month period. Taxable payroll, since 1986, has been the first $9,500 of each covered employee's wages paid during the year. That dropped to $9,000 effective Jan. 1, 2003.

To summarize, the Chargeable Benefits Component is figured like this:

The result is rounded to the next higher 0.1%. The Chargeable Benefits Component can range from zero to 6.3%.