Each quarter, you will receive a charge statement detailing all charges against your account for that particular quarter. The statement lists the claimant's name, Social Security number, and total charges. As a base period employer, you are liable for the cost of benefits paid to your former employees through "charges" to your employer account. Benefits are charged in proportion to the percentage of total base period wages you paid. For example if you paid 100 percent of the base period wages, you would be charged 100 percent of the benefits paid. If you paid only 25 percent of the base period wages, your account would be charged for 25 percent of the benefits paid.
Contributory employers are not charged in the following circumstances:
- When benefits are paid subsequent to a claimant's requalification after being disqualified for voluntarily leaving his/her last employer without good cause connected with the work, or for misconduct in the course of the last work, all base period contributory employers automatically are relieved of such charges.
- When benefits are paid to an individual who is a continuing parttime employee of an employer other than the separating employer, the continuing contributory employer is eligible for noncharging of benefits. It is the responsibility of the continuing contributory employer to notify DOES in this case.
- When extended benefits are paid to an individual who has exhausted regular benefits, all base period contributory employers are automatically relieved of charges for extended benefits.
- When a benefit overpayment is established on benefits that have been charged to employers' accounts, the accounts are credited for the amount of the overpayment in the same percentage that the accounts are charged.
Noncharging does not apply to a reimbursable employer. Such employers are responsible for all benefits charged to their accounts for regular UI, and for the nonfederal share of extended benefits that is charged to their accounts. Reimbursable employers only receive a credit against benefit overpayments for the amount of the overpayment that is repaid by the claimant.
Charges to your account are one of the three factors that enter into the calculation of your annual tax rate (the other factors are taxes paid and total payroll). Therefore, charges could increase your tax rate.
If you are a reimbursable employer, you will receive a quarterly bill (Form UC244) accompanied by a detailed listing of each charge against your account.
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