Calendar Year 2015 2016 2017 2018 Total Таxable Total Тахаble Total Тахable Total Тахable Рayroll Рayroll Рaуroll Рayroll Рayroll Рayroll Рayroll Рayroll First Quarter ...- Second Quarter .. Third Quarter ... Fourth Quarter. $12,000 11,750 12,500 13,000 $12,000 11,750 12,250 12,500 $11,000 11,500 12,750 12,500 $11,000 11,400 12,400 12,200 $13,000 12,750 12,200 14,000 $13,000 12,700 12,000 13,750 $10,000 9,300 9,350 $10,000 9,300 9,350
Applebaum Security Company is located in State H, which enables employers to reduce their contribution rates under
the experience-rating system. From 2005 to 2014, inclusive, the company’s total contributions to state
The contributions of each employer are credited to an account maintained by the State Unemployment
Compensation Commission. This account is credited with contributions paid into the account by the employer and is
charged with unemployment benefits that are paid from the account. Starting January 1, 2019, the contributions rate
for all employers in State H will be based on the following tax rate schedule:
Reserve Ratio Contribution Rate
Contributions falling below benefits paid....................... 7.0%
0.0% to 7.9%................................................................ 5.5%
8.0% to 9.9%................................................................ 4.5%
10.0% to 11.9%............................................................ 3.5%
12.0% to 14.9%............................................................ 2.5%
15.0% or more .............................................................. 1.5%
The annual payroll for calculation purposes is the total wages payable during a 12-month period ending with the
last day of the third quarter of any calendar year. The average annual payroll is the average of the last three annual
payrolls. The SUTA tax rate for the year is computed using the information available (benefits received and taxes paid)
as of September 30 of the preceding year.
The schedule below shows the total payroll and the taxable payroll for the calendar years 2015 to 2018.
Unemployment benefits became payable to the company’s qualified unemployed workers on January 1, 2005.
Between that time and September 30, 2018, total benefits amounting to $23,194.15 were charged against the employer’s account. Compute:
a. Contribution rate for 2019................................................................................. _______________%
b. Rate for 2019 if $2,000 additional benefits had been charged by mistake
to the account of Applebaum Security Company by the State Unemployment
Compensation Commission .............................................................................. ____________%
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