Labor and Economic Opportunity
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%.