How are experience rates calculated?
Existing employers can receive a base tax rate, calculated on their particular account history, if they have wages for a minimum of 12 months for the period ending June 30th of the prior year. In other words, they have completed one full fiscal year (July 1-June 30) and have established an account prior to the rate calculation period.
Experience rates are calculated by dividing the benefits charged against the account by the taxable wage amount for the period ending June 30th of the prior year, up to four fiscal years back. This ratio is then applied to the Trust Fund factors to create a base tax.
