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2013 Online Obligation Assessment Rate Calculator
For the convenience of our employer customers, below are instructions to help you figure your 2013 obligation assessment.
The 2013 Obligation Assessment (OA) Rate is derived from the following formula:
(Current Tax Rate X OA Ratio) + (Base Assessment ÷ Taxable Wage Base)
The 2013 rates are as follow:
- OA ratio = .145015
- Base assessment = $63.00
- Taxable wage base=$9,500
The example calculation below is based on a fictional employer with a 2013 tax rate of 10.30% and 1,500 employees.
Divide your tax rate (10.3) by 100. On your calculator, 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.
Next, multiply 0.103 by the OA Ratio of 0.145015 (0.103 X 0.145015). To do this, enter .103, hit the multiplication ( X ) key, and then hit the equals ( = ) key. Did you get 0.014937? Good, that's correct. Jot this number down.
Now divide the Base Assessment by the Taxable Wage Base (63 / 9500). Enter 63, hit the division ( / ) key and enter 9500; now hit the equals ( = ) key. You should get 0.0066316. Next, add this number to the number you saved above and multiply the result by 100. (0.014937 + 0.0066316 X 100). So, enter 0.014937, hit the addition ( + ) key, enter 0.0066316, hit the multiplication key ( *), enter 100 and hit the equals ( = ) key. If you get 2.15686, you're right. Always round up this number to the next hundredths of a percent. So now you should have 2.16. This is your 2013 OA Rate.
To obtain your cost per employee, multiply this example's OA Rate of 2.16 by the taxable wage base of $9,500. On your calculator, enter .0216, hit the multiplication ( * ) key and enter 9500. Now hit the equals ( = ) key. You should get a cost per employee of $205.20.
To obtain the total cost for the example employer, enter the cost per employee of $205.20 and multiply it by the number of employees, which is 1,500 in this example. On your calculator, enter 205.20, hit the multiplication (* ) key and enter 1500. Hit equals (=) and you should get $307,800 as the total cost for the example employer.
Example Results Summary: