Ariz. Admin. Code § 6-3-1711

Current through Register Vol. 30, No. 24, June 14, 2024

Section R6-3-1711 - Computation of Experience Rates

A. An employer whose account has been chargeable for benefits throughout the twelve month period immediately preceding the July 1 computation date shall receive a computed rate for the following calendar year as prescribed in A.R.S. § 23-730.

B. The term chargeable means that an employer has been subject to potential charges resulting from benefit payments that could have been made if claims were filed. For purposes of establishing the rate for new accounts, the date upon which an employer's account becomes chargeable for benefit payments is either the first day of the second quarter following the end of the first quarter of wage payments after coverage began, or on the first day of the calendar quarter after the quarter in which the employer became liable under A.R.S. § 23-613, whichever is later.

C. The amount of contributions used to compute an employer's reserve ratio includes all contributions paid on or before July 31 or the next business day if July 31 falls on a Saturday, Sunday, or a legal holiday. Contributions shall not include payments of interest or penalties, or payments of contributions paid on or before July 31 and subsequently refunded on or before October 31.

D. The amount of benefit charges to compute an employer's reserve ratio includes the employer's share of the amount of all checks issued on or before June 30 for the payment of benefit claims determined chargeable against the employer's account. Credits resulting from erroneous payment of benefits shall be reflected in the quarter in which the error was established pursuant to A.C.R.R. R6-3-1708(B).

E. Average annual payroll used to compute an employer's reserve ratio includes the average of the taxable wages reported on or before the following October 31, or estimates and assessments made for the required quarterly reports through the period ending June 30.

F. Estimates of taxable payroll as provided in A.R.S. § 23-731 for any quarter in which a required report has not been filed shall be based on the best information available to the Department or the highest amount of taxable payroll reported on the last three quarterly reports submitted immediately preceding the delinquent quarter(s). However, when no reports have been filed or when the reports submitted reflect no wages paid, the estimate(s) shall be based on the average of taxable wages for all experience rated employers for the prior fiscal year.

G. Notwithstanding subsections (A) and (B), an employer who succeeds to or acquires a business or a distinct and severable portion of a business between July 1 and December 31 of a calendar year, shall have the experience rating account of the predecessor used in computing its rate for the following calendar year if either the predecessor or successor informs the Department of the acquisition prior to the date its rate becomes final for the calendar year following the year of acquisition. If only a portion of the business was acquired, the provisions of A.R.S. § 23-733(B) and A.C.R.R. R6-3-1713(D) must also be met.

Ariz. Admin. Code § R6-3-1711

Former Regulation 40-7; Former Section R6-3-1711 repealed, new Section R6-3-1711 adopted effective October 24, 1983 (Supp. 83-5). Correction, subsection (G), reference to A.C.R.R. R6-3-1713(B) should read A.C.R.R. R6-3-1713(D) (Supp. 84-2).