Unemployment Compensation is paid on the taxable wage base of $14,700. This is for wages earned in the 2003 calendar year. New employers pay standard rates based on their industry’s North America Industry Classification Systems (NAICS) Grouping.
Minimum Standard Tax
For 2003, the minimum standard tax rate assigned to computed rate employers only is .0018 (.18%) and the maximum standard tax rate assigned to computed rate employers only is .0656 (6.56%).
Generally, finance, insurance, and real estate (FIRE) are the lowest rates and the logging industry is the highest. After the initial experience period of three years, the employer’s rate is re-computed each year based in part on claims filed.
Worker’s Compensation is based on a percentage of wages. New employers pay the base/cap rate for the NAICS classification for the first 21/2 years of operation.
Base Rates for 2003
They include the minimum rate of .0022 (.22%) and the maximum rate of .1224 (12.24%). Generally, deposit insurance rates are the lowest and logging rates are the highest. After the initial 21/2 years, the rate is re-evaluated based on the employer’s record of claims and the NAICS classification rate for that year.