TAXATION

Table 200.-- Years of Benefits, Contributions, and Payrolls Used in Computing Rates
by Type of Experience-rating formula, and Selected Experience-rating Provisions

State Reserve ratio (33 States) Selected Experience-rating Provisions
  Years of benefits used 1/ Years of payrolls used 2/ Taxable wage base above $7,000 (41 States) Wages include remuneration over $7,000 if subject to FUTA (41 States) Voluntary contributions permitted (27 States)
Arizona All past years. Average 3 years. 2/ X X
Arkansas All past years. $9,000 X X
California All past years. Average 3 years. 2/ X5/
R1 Colorado All past years. Average 3 years. $10,000 X X
District of Columbia All since July 1, 1939 Average 3 years. 2/ $9,000 X
Georgia All past years. Average 3 years. $8,500 X X
Hawaii All past years. Average 3 years. $27,500 X
Idaho All since Jan. 1, 1940 Average 4 years. $25,700
Indiana All past years. Aggregate 3 years X X
Kansas All past years. Average 3 years. 2/ $8,000 X X5/
Kentucky All past years. Aggregate 3 years $8,000 X X
Louisiana All since Oct. 1, 1941 Average 3 years. X X5/
Maine All past years. Average 3 years. $12,000 X X
Massachusetts All past years. Last year. $10,800 X
Missouri All past years. 1/ Average 3 years. 7/ X X
Montana All years since Oct. 1, 1981 Average 3 years. $18,200 X
Nebraska All past years. Average 4 years. X X
Nevada All past years. Average 3 years. $20,300 X
New Hampshire All past years. 1/ Average 3 years. $8,000
New Jersey All past years. $22,100 X X
New Mexico All past years. Average 3 years. $15,200 X X
New York All past years. Average 5 years. 2/ $8,500 X X
North Carolina All past years. Aggregate 3 years. $13,900 X X5/
North Dakota All past years. Average 3 years. $17,100 X X
Ohio All past years. Average 3 years. $9,000 6/ X X
Puerto Rico Last 3 years Last 3 years.
Rhode Island All since Oct. 1, 1958 Average 3 years. $12,000 6/ X
South Carolina All past years. Last year. X
South Dakota All past years. Aggregate 3 years. X X
Tennessee All past years. Average 3 years. X
Virgin Islands Last 3 years Last 3 years. $15,900
West Virginia All past years. Average 3 years. $8,000 X X
Wisconsin All past years. Last year. $10,500 X X5/
  Benefit-ratio formula (17 States)
Alabama Last 3 fiscal years. $8,000 X
Connecticut Last 3 years. Last 3 years. 2/ $15,000 X
Florida Last 3 years. Last 3 years. 2/ X
Illinois Last 3 years. Last 3 years. $9,000 X
Iowa Last 5 years. Last 5 years. $17,900 X
Maryland Last 3 years. Last 3 years. 2/ $8,500 X
Michigan 4/ Last 5 years. Last 5 years. $9,500 X X
Minnesota Last 5 years. Last 5 years. $20,000 X
Mississippi Last 3 years. Last 3 years. X
Oregon Last 3 years. Last 3 years. $25,000
Pennsylvania 4/ Average 3 years. Average 3 years. $8,000 X X
Texas Last 3 years. Last 3 years. $9,000 X
Utah Last 4 years. 3/ Last 4 years. 3/ $21,400 X
Vermont Last 3 years. Last 3 years. $8,000 X
Virginia Last 4 years. Last 4 years. $8,000
Washington Last 4 years. Last 4 years. $26,600 X5/
Wyoming Last 3 years. Last 3 years. $13,600 X
Delaware Last 3 years. Last 3 years. $8,500 X
Oklahoma Last 3 years. Last 3 years. $10,100
  Payroll-decline formula, quarterly (1 State)
Alaska Last 3 years. $25,500

1 / In reserve-ratio States years of contributions used are same as years of benefits used. Or last 5 years, whichever is to the employer’s advantage, Missouri; or last 5 years under specified conditions, New Hampshire.

2 / Years immediately preceding or ending on computation date. In States noted, years ending 3 months before computation date, District of Columbia, Florida, Maryland, and New York or 6 months before such date, Arizona, California, Connecticut, and Kansas.

3 / Whichever is lesser, Arkansas; whichever is higher, New Jersey. Employers with 3 or more years’ experience may elect to use the last year, Arkansas. If 4 years not available, Utah will use less up to 1 year minimum.

4 / Formula includes reserve ratio, Michigan and Pennsylvania.

5 / Voluntary contributions limited to amount of benefits charged during 12 months preceding last computation date, Louisiana; employer ER receives credit for 100% of any voluntary contributions made to fund, North Carolina; reduction in rate because of voluntary contributions limited to five rate groups for positive-balance employer’s, other limitations apply for negative-balance ER's, Kansas, and Wisconsin; surcharge of 10 percent added to the voluntary contribution, however, not permitted for employers who have not had an increase of at least 6 rate classes from the previous tax rate year, Washington; not permitted for yrs. in which rate schedule higher than basic schedule is in effect or in which additional surtax or solvency rates apply, Lousiana; not permitted for yrs. in which contribution rate schedules E and F are in effect or in which the emergency solvency surcharge applies, California.

6 / If the fund level is 60% or below the minimum safe level, then on January 1 of the following CY the wage base will be $9,000, Ohio; the taxable wage base will range from $12,000 to 19,000 depending on the amount of the employment security fund on Sept. 30 of each CY, Rhode Island.

7 / If the trust fund balance, on September 30, is (1) less than, or equal to $300 million, then the taxable wage base will increase by $500 the next year; or (2) $450 million or more, then the taxable wage base will be decreased by $500; however the taxable wage base may not increase beyond $10,500, or decrease to less than $7,000,(for 2001 the wage base is $7,000) Missouri.