For calendar year 1985 and each calendar year thereafter, variations from the standard rate of contribution shall be determined in accordance with the following requirements:
1. If the total of all an employer's contributions, paid on or before July 31 of the preceding calendar year with respect to wages paid by the employer prior to July 1 of the preceding calendar year, equals or exceeds the total benefits that were chargeable to the employer's account and were paid prior to July 1 of the preceding calendar year, with respect to weeks of unemployment beginning prior to July 1, the employer's contribution rate for the ensuing calendar year subject to the adjustments provided by this section shall be determined from the employer's positive reserve ratio in accordance with the table provided in this paragraph. An employer's positive reserve ratio is the percentage resulting from dividing the employer's reserve surplus, which is the excess of contributions paid over benefits charged by the employer's average annual taxable payroll. If an employer's reserve equals zero, the employer's contribution rate for the ensuing calendar year shall be two and seven-tenths per cent, subject to the adjustments provided by this section.
Positive Reserve RatioContribution Rate
Less than 3% 2.60%
At least 3% but less than 4% 2.40%
At least 4% but less than 5% 2.15%
At least 5% but less than 6% 1.90%
At least 6% but less than 7% 1.65%
At least 7% but less than 8% 1.40%
At least 8% but less than 9% 1.15%
At least 9% but less than 10% 0.90%
At least 10% but less than 11% 0.65%
At least 11% but less than 12% 0.40%
At least 12% but less than 13% 0.15%
13% or more 0.02%
2. If the total of all an employer's contributions, paid on or before July 31 of the preceding calendar year with respect to wages paid by the employer prior to July 1 of the preceding calendar year, is less than the total benefits that were chargeable to the employer's account and were paid prior to July 1 of the preceding calendar year, with respect to weeks of unemployment beginning prior to July 1, the employer's contribution rate for the ensuing calendar year shall be determined from the employer's negative reserve ratio in accordance with the table provided in this paragraph, subject to the rate adjustment provided in paragraph 3, except that the rate is subject to increases but not to reduction. An employer's negative reserve ratio is the percentage resulting from dividing the employer's reserve deficit, which is the excess of benefits charged over contributions paid, by the employer's average annual taxable payroll. The table applicable to rate computation for calendar year 1987 and each calendar year thereafter is:
Negative Reserve RatioContribution Rate
Less than 3% 2.85%
At least 3% but less than 4% 3.05%
At least 4% but less than 5% 3.30%
At least 5% but less than 6% 3.55%
At least 6% but less than 7% 3.80%
At least 7% but less than 8% 4.05%
At least 8% but less than 9% 4.30%
At least 9% but less than 10% 4.55%
At least 10% but less than 11% 4.80%
At least 11% but less than 12% 5.05%
At least 12% but less than 13% 5.30%
13% or more 5.40%
3. The ratio of the total assets of the fund on July 31 as defined by department regulation to the total taxable payrolls for the twelve month period immediately preceding the computation date shall determine the required income rate for the ensuing calendar year in accordance with the following fund control schedule:
Fund RatioRequired Income Rate
12.0% or more 0.40%
At least 10.0% but less than 12.0% 0.50%
At least 9.5% but less than l0.0% 0.60%
At least 9.0% but less than 9.5% 0.70%
At least 8.5% but less than 9.0% 0.80%
At least 8.0% but less than 8.5% 0.90%
At least 7.5% but less than 8.0% 1.00%
At least 7.0% but less than 7.5% 1.10%
At least 6.5% but less than 7.0% 1.20%
At least 6.0% but less than 6.5% 1.30%
At least 5.5% but less than 6.0% 1.40%
At least 5.0% but less than 5.5% 1.50%
At least 4.5% but less than 5.0% 1.70%
At least 4.0% but less than 4.5% 1.80%
At least 3.5% but less than 4.0% 2.00%
At least 3.0% but less than 3.5% 2.20%
Less than 3.0% 2.40%
For each calendar year the department shall compute the estimated required tax yield from employers that is the product of the total taxable payrolls for the twelve month period immediately preceding the computation date and the applicable required income rate from the fund control schedule less the interest earned on monies in the fund during the twelve month period immediately preceding the computation date and credited to the fund by the United States treasury on or before October 31 following the computation date. Except as otherwise provided by statute, the rates in paragraphs 1 and 2 shall be adjusted proportionately if the estimated required tax yield from employers exceeds or is less than the estimated yield from the rates without adjustment.
4. In computing an employer's adjusted rate as provided by paragraph 3, the adjusted rate shall be calculated to the nearest one-hundredth per cent. An employer's adjusted rate shall not be less than two one hundredths per cent.