For the convenience of our employer customers, below is a calculator and instructions to help you figure your 2012 obligation assessment.

General Instructions: Try clicking on the buttons to make calculations. If some keys, such as the multiplication (*) key or division (/) key, don't work, try typing in those symbols in the window. Handling of some expressions varies among browsers. Clicking 'CL' clears the form.

Note: The calculator only works with javascript-enabled browsers.

The 2012 Obligation Assessment (OA) Rate is derived from the following formula:

(Current Tax Rate X OA Ratio) + (Base Assessment ÷ Taxable Wage Base)

The 2012 rates are as follow:

• OA ratio = .080671
• Base assessment = $42.00
• Taxable wage base=$9,500

The example calculation below is based on a fictional employer with a 2012 tax rate of 10.30% and 1,500 employees.

Instructions:

1. Divide your tax rate (10.3) by 100. On the calculator above, enter 10.3, hit the division ( / ) key, and enter 100 to divide the tax rate by 100. Your calculator window should read: 10.3/100. Now hit the equals (=) key. The result should be 0.103 with several zeroes.
2. Next, multiply 0.103 by the OA Ratio of 0.080671 (0.103 X 0.080671). To do this, enter .103, hit the multiplication ( X ) key, and then hit the equals ( = ) key. Did you get 0.0083091? Good, that's correct. Jot this number down.
3. Now divide the Base Assessment by the Taxable Wage Base (42 / 9500). Enter 42, hit the division ( / ) key and enter 9500; now hit the equals ( = ) key. You should get 0.004421. Next, add this number to the number you saved above and multiply the result by 100. (0.0083091 + 0.004421 X 100). So, enter 0.0083091, hit the addition ( + ) key, enter 0.004421, hit the multiplication key ( *), enter 100 and hit the equals ( = ) key. If you get 1.27301, you're right. Always round up this number to the next hundredths of a percent. So now you should have 1.28. This is your 2012 OA Rate.
4. To obtain your cost per employee, multiply this example's OA Rate of 1.28 by the taxable wage base of $9,500. On the calculator above, enter 1.28, hit the multiplication ( * ) key and enter 9500. Now hit the equals ( = ) key. You should get a cost per employee of $121.60.
5. To obain the total cost for the example employer, enter the cost per employee of $121.60 and multiply it by the number of employees, which is 1,500 in this example. On the calculator, enter 121.60, hit the multiplication (* ) key and enter 1500. Hit equals (=) and you should get $182,400.00 as the total cost for the example employer.

Example Results Summary:

• OA Rate = 1.28
• Cost Per Employee = $121.60
• Total Cost For Employer = $182,400