Chargeable Benefits Component (CBC)

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 be 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:

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