The web Browser you are currently using is unsupported, and some features of this site may not work as intended. Please update to a modern browser such as Chrome, Firefox or Edge to experience all features Michigan.gov has to offer.
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:
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%.