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Labor and Economic Opportunity

Chargeable Benefits Component

This component takes into consideration the amount of unemployment benefits charged to an employer's account over a 36-month (3-year) period, ending the previous June 30.

For example, the 36-month period used to compute the tax rate for calendar year 2019 (as shown on the tax rate notice mailed in December of 2018) would have been the 36-month period ending June 30,2018.

This amount is then divided by all of the taxable payroll during that same 36-month period.  Taxable payroll is the first $9,000 ($9,500  for some employers) of each covered employee’s wages paid during the year.

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

CBC = 36 months of benefits paid/

   36 months of taxable payroll

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