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Labor and Economic Opportunity

How is my tax rate calculated?

The tax rate is a combination of:

  1. The Chargeable Benefit Component (CBC)  - made up of the total unemployment charges against the employer for the most recent 5 years.
  2. The Account Building Component (ABC)  - a reserve account for possible payment of future benefits. The amount required in this component is based on the payroll for the most recent year.
  3. The Non-Chargeable Benefits Component (NBC)  - used to pay benefits that cannot be charged to a specific employer's account.

If you have benefits charges and an increase to the payroll, this will increase the rate. If you have a negative reserve (paid more for benefits than we’ve collected in taxes), this will increase your rate. If you have a non-reporting penalty on the account, this will also increase the rate.