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Chargeable Benefits Component
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 the calendar year (as shown on the tax rate notice mailed in December) would have been the 36-month period ending June 30.
This amount is then divided by all of the taxable payroll during that same 36-month period. Taxable payroll is the first $9,500 of each covered employee’s wages paid during the year unless a reduction is calculated.
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%.