Section 3350D - Benefit ratio assessment rate(a) For purposes of this section "benefit ratio calculation period" means the 12 consecutive calendar quarters ending on June 30 of the calendar year prior to the assessment rate year.(b) One time each assessment rate year, no later than December 31, the Department shall calculate the amount of the benefit ratio assessment rate to be assigned to a rated employer for the following assessment rate year, in accordance with the provisions of this section.(c) The Department shall compute a rated employer's benefit ratio by:(1) Adding the benefit charges that were charged to the rated employer's merit rating account during each of the 12 calendar quarters in the benefit ratio calculation period; and(2) Dividing the figure calculated under paragraph (c)(1) of this section by the rated employer's aggregate taxable wages for the 12 calendar quarters in the benefit ratio calculation period.(d) Benefit ratios shall be carried out to the sixth decimal place.(e) Array Distribution. (1) Once a benefit ratio has been calculated for each rated employer, the Department shall prepare a ranked list of all rated employers. The ranked list shall start with the rated employer having the lowest benefit ratio and progress through the rated employer having the highest benefit ratio.(2) For each rated employer, the ranked list must include all of the following:a. The benefit ratio computed for the employer under this section;b. The aggregate taxable wages for the employer for the 12 calendar quarters in the benefit ratio calculation period;c. A percent calculation of the employer's aggregate taxable wages for the 12 calendar quarters in the benefit ratio calculation period divided by the taxable wages of all employers on the ranked list for the 12 calendar quarters in the benefit ratio calculation period, carried out to the sixth decimal place; andd. A cumulative total consisting of the sum of the percent calculated in paragraph (e)(2)(c.) of this section for each employer on the ranked list plus the percent calculated for all other preceding employers on the ranked list, carried out to the sixth decimal place, which represents the "cumulative taxable wage percentage" for each employer.(3) The Department shall group all rated employers and place them in an assessment rate class based on the cumulative taxable wage percentage calculated in this section (e)(2)(d.). a. Employers with cumulative taxable wage percentages from 0.000% but less than 20.000% will be placed in assessment rate class 1.b. Employers with cumulative taxable wage percentages that fall within the range from 20.000% but less than 35.000% will be placed in assessment rate class 2.c. Employers with cumulative taxable wage percentages that fall within the range of 35.000% but less than 50.000% will be placed in assessment rate class 3.d. Employers with cumulative taxable wage percentages that fall within the range of 50.000% but less than 60.000% will be placed in assessment rate class 4.e. Employers with cumulative taxable wage percentages that fall within the range of 60.000% but less than 70.000% will be placed in assessment rate class 5.f. Employers with cumulative taxable wage percentages that fall within the range of 70.000% but less than 77.000% will be placed in assessment rate class 6.g. Employers with cumulative taxable wage percentages that fall within the range of 77.000% but less than 84.000% will be placed in assessment rate class 7.h. Employers with cumulative taxable wage percentages that fall within the range of 84.000% but less than 89.000% will be placed in assessment rate class 8.i. Employers with cumulative taxable wage percentages that fall within the range of 89.000% but less than 92.000% will be placed in assessment rate class 9.j. Employers with cumulative taxable wage percentages that fall within the range of 92.000% but less than 94.000% will be placed in assessment rate class 10.k. Employers with cumulative taxable wage percentages that fall within the range of 94.000% but less than 96.000% will be placed in assessment rate class 11.l. Employers with cumulative taxable wage percentages that fall within the range of 96.000% but less than 97.500% will be placed in assessment rate class 12. m. Employers with cumulative taxable wage percentages that fall within the range of 97.500% but less than 98.500% will be placed in assessment rate class 13.n. Employers with cumulative taxable wage percentages that fall within the range of 98.500% but less than 99.500% will be placed in assessment rate class 14.o. Employers with cumulative taxable wage percentages that fall within the range of 99.500% but less than 99.900% will be placed in assessment rate class 15.p. Employers with cumulative taxable wage percentages of 99.900% or greater will be placed in assessment rate class 16.(4) Notwithstanding subsection (e)(3) of this section, the following rules shall apply to the placement of employers in assessment rate classes.a. If the grouping results in the cumulative taxable wage percentage of a rated employer falling in two assessment rate classes, the rated employer and any other rated employer with the same benefit ratio shall be placed in the lower of the two applicable assessment rate classes.b. All rated employers with the same benefit ratio shall be placed in the same assessment rate class.c. If the grouping of employers with the same cumulative taxable wage percentage who are placed in the same assessment rate class results in the upper limit of that assessment rate class being exceeded, the next rated employer or employers on the ranked list shall be placed in the assessment rate class with the limits that correspond to their cumulative total wage percentages, even if no employer is placed in one or more assessment rate classes.(5) Benefit ratio assessment rates shall be assigned to rated employers in the following manner: a. The schedule that is determined pursuant to § 3350C of this title to be in effect for the next assessment rate year will determine which column of assessment rates on the Benefit Ratio Assessment Rate Table below are in effect for the next assessment rate year.b. The rated employers placed in each assessment rate class, as determined pursuant to subsection (e) of this section, shall be assigned the benefit ratio assessment rate opposite the rate class number on the Benefit Ratio Assessment Rate Table below, in the column for the schedule in effect for the next assessment rate year.Benefit Ratio Assessment Rate Table
Rate Class | Schedule H | Schedule G | Schedule F | Schedule E | Schedule D | Schedule C | Schedule B | Schedule A |
1 | 1.21% | 0.92% | 0.64% | 0.36% | 0.20% | 0.20% | 0.20% | 0.20% |
2 | 1.41% | 1.12% | 0.84% | 0.56% | 0.24% | 0.20% | 0.20% | 0.20% |
3 | 1.61% | 1.32% | 1.04% | 0.76% | 0.44% | 0.20% | 0.20% | 0.20% |
4 | 1.81% | 1.52% | 1.24% | 0.96% | 0.64% | 0.20% | 0.20% | 0.20% |
5 | 2.11% | 1.82% | 1.54% | 1.26% | 0.94% | 0.50% | 0.20% | 0.20% |
6 | 2.41% | 2.12% | 1.84% | 1.56% | 1.24% | 0.80% | 0.20% | 0.20% |
7 | 2.61% | 2.32% | 2.04% | 1.76% | 1.44% | 1.00% | 0.21% | 0.20% |
8 | 2.81% | 2.52% | 2.24% | 1.96% | 1.64% | 1.20% | 0.41% | 0.20% |
9 | 3.11% | 2.82% | 2.54% | 2.26% | 1.94% | 1.50% | 0.71% | 0.20% |
10 | 3.31% | 3.02% | 2.74% | 2.46% | 2.14% | 1.70% | 0.91% | 0.20% |
11 | 3.51% | 3.22% | 2.94% | 2.66% | 2.34% | 1.90% | 1.11% | 0.20% |
12 | 3.71% | 3.42% | 3.14% | 2.86% | 2.54% | 2.10% | 1.31% | 0.20% |
13 | 3.91% | 3.62% | 3.34% | 3.06% | 2.74% | 2.30% | 1.51% | 0.20% |
14 | 4.11% | 3.82% | 3.54% | 3.26% | 2.94% | 2.50% | 1.71% | 0.20% |
15 | 4.51% | 4.22% | 3.94% | 3.66% | 3.34% | 2.90% | 2.11% | 0.48% |
16 | 5.40% | 5.40% | 5.40% | 5.40% | 5.40% | 5.40% | 5.40% | 5.40% |
(6) If the benefit ratio of a rated employer on the ranked list created in this subsection (e) is changed after the initial calculation of the ranked list, the employer will be moved into the assessment rate class that the employer would have occupied had that employer's benefit ratio as changed been used in determining that employer's position in the first instance. However, the change does not affect the position or assessment rate class of any other employer listed on the ranked list and does not affect the benefit ratio assessment rate determination of the employer for previous years.(7) This section does not apply to setting benefit ratio assessment rates for any new employer governed by § 3348 of this title.Added by Laws 2023, ch. 365,s 16, eff. 8/15/2024.