2014 Obligation Assessment Rate CalculatorFor the convenience of our employer customers, below are instructions to help you figure your 2014 obligation assessment.
The 2014 Obligation Assessment (OA) Rate is derived from the following formula:
(Current Tax Rate X OA Ratio) + (Base Assessment ÷ Taxable Wage Base)
The 2014 rates are as follow:
- OA ratio = 0.153985
- Base assessment = $63.00
- Taxable wage base=$9,500
The example calculation below is based on a fictional employer with a 2014 tax rate of 10.30% and 1,500 employees.
Divide your tax rate (10.3) by 100. The result should be 0.103.
Next, multiply 0.103 by the OA Ratio of 0.153985 (0.103 X 0.153985). Did you get 0.015860? Good, that's correct. Jot this number down.
Now divide the Base Assessment by the Taxable Wage Base (63 / 9500). You should get 0.0066316. Next, add this number to the number you saved above and multiply the result by 100. (0.015860 + 0.0066316 X 100). If you get 2.24916, you're right. Always round up this number to the next hundredths of a percent. So now you should have 2.25. This is your 2014 OA Rate (2.25%).
To obtain your cost per employee, multiply this example's OA Rate of 2.25 by the taxable wage base of $9,500. You should get a cost per employee of $213.75.
To obtain the total cost for the example employer, enter the cost per employee of $213.75 and multiply it by the number of employees, which is 1,500 in this example. You should get $320,625 as the total cost for the example employer.
Example Results Summary:
OA Rate = 2.25
Cost Per Employee = $213.75
Total Cost For Employer = $320,625