How is my tax rate calculated?
The tax rate is a combination of:
- The Chargeable Benefit Component (CBC) - made up of the total unemployment charges against the employer for the most recent 5 years.
- 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.
- 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.