Vermont Statutes Title 21 Sec. 1326
Terms Used In Vermont Statutes Title 21 Sec. 1326
- Calendar quarter: means a period of three consecutive calendar months ending on March 31, June 30, September 30, or December 31, or the equivalent thereof as the Board may by regulation prescribe. See
- Commissioner: means the Commissioner of Labor established by this chapter, or his or her authorized representative. See
- compensation: means the money payments payable to an individual, as provided in this chapter, with respect to his or her unemployment. See
- Contributions: means the money payments to the State Unemployment Compensation Fund required by this chapter. See
- Employer: includes :
- employment: shall include an individual's entire service, performed within, or both within and without, this State if the service is localized in this State. See
- following: when used by way of reference to a section of the law shall mean the next preceding or following section. See
- Fund: means the Unemployment Compensation Fund established by this chapter, to which all contributions required and from which all benefits provided under this chapter shall be paid. See
- Rate year: means the period beginning on July 1 of a year and ending on June 30 of the following year. See
- wages: as used in this chapter shall not include:
§ 1326. Rate based on benefit experience
(a) The Commissioner shall for each rate year compute a benefit ratio for each employer who meets the requirements of section 1327 of this title. For an employer whose record has been chargeable with benefits throughout the three consecutive calendar years immediately preceding the rate year for which the ratio is computed, the benefit ratio shall be the quotient obtained by dividing the total benefits charged to his or her record in such three years by the total of his or her taxable payrolls for the same three-year period; for an employer whose record has been chargeable with benefits for at least one but less than three consecutive calendar years immediately preceding the rate year for which the ratio is computed, the benefit ratio shall be the quotient obtained by dividing the total benefits charged to his or her record for such calendar year or years by the total of his or her taxable payrolls for the same period. The contribution rate of each employer, not otherwise ineligible, who meets the requirements of section 1327 of this title, shall be determined under subsections (b) through (g) of this section.
(b) The Commissioner shall prepare a schedule on which he or she shall list all employers for whom a benefit ratio has been computed pursuant to this section, in the order of their benefit ratios, beginning with the lowest such ratio, and on which shall be shown with respect to each such employer:
(1) the amount of his or her benefit ratio;
(2) the amount of his or her annual taxable payroll; and
(3) a cumulative total consisting of the amount of his or her annual taxable payroll plus the amount of the annual taxable payrolls of all other employers preceding him or her on the list.
(c) The Commissioner shall segregate employers so listed into classes in accordance with the cumulative payrolls. The classes shall be determined by the cumulative payroll percentage limits set forth in column B of the table below. Each such class shall be identified by the rate class number in column A that is opposite the figures in column B that represents the percentage limits of each class. In the event an employer’s taxable payroll falls in more than one rate class, he or she shall be assigned to the lower numbered rate class except that no employer shall be assigned to a higher rate class than is assigned any other employer with the same benefit ratio.
(d) The Commissioner shall compute a current fund ratio, and a highest benefit cost rate, as follows:
(1) The current fund ratio shall be determined by dividing the available balance of the Unemployment Compensation Fund on December 31 of the preceding calendar year by the total wages paid for employment during that calendar year as reported by employers by the following March 31.
(2)(A) The highest benefit cost rate shall be determined by dividing the highest amount of benefit payments made during a consecutive 12-month period that ended within the 10-year period ending on the preceding December 31, by the total wages paid during the four calendar quarter periods that ended within that 12-month period.
(B) Notwithstanding any provision of subdivision (A) of this subdivision (d)(2) to the contrary, when computing the tax rate schedule to become effective on July 1, 2021 and on each subsequent July 1, the Commissioner shall calculate the highest benefit cost rate without consideration of benefit payments made in calendar year 2020.
(e) The rate schedule shall be determined by dividing the current fund ratio by the highest benefit cost rate. The applicable rate schedule shall be that schedule below the resultant quotient that appears in column C of the following table:
| A. | B. | C. | |||||
| IF THE RESULTING QUOTIENT IS: | |||||||
| Rate Class |
% of Taxable Payrolls |
2.50 and over |
2.00 to 2.49 |
1.50 to 1.99 |
1.00 to 1.49 |
under 1.00 |
|
| From | To | I. | II. | III. | IV. | V. | |
| _________________________________________ | |||||||
| 0 | 00.00 | 00.00 | 0.4% | 0.6% | 0.8% | 1.1% | 1.3% |
| 1 | 00.01 | 05.00 | 0.5 | 0.7 | 0.9 | 1.2 | 1.5 |
| 2 | 05.01 | 10.00 | 0.6 | 0.8 | 1.1 | 1.4 | 1.8 |
| 3 | 10.01 | 15.00 | 0.7 | 1.0 | 1.4 | 1.7 | 2.1 |
| 4 | 15.01 | 20.00 | 0.8 | 1.2 | 1.7 | 2.0 | 2.4 |
| 5 | 20.01 | 25.00 | 0.9 | 1.4 | 2.0 | 2.3 | 2.7 |
| 6 | 25.01 | 30.00 | 1.1 | 1.7 | 2.3 | 2.6 | 3.0 |
| 7 | 30.01 | 35.00 | 1.4 | 2.0 | 2.6 | 2.9 | 3.3 |
| 8 | 35.01 | 40.00 | 1.7 | 2.3 | 2.9 | 3.2 | 3.6 |
| 9 | 40.01 | 45.00 | 2.0 | 2.6 | 3.2 | 3.5 | 4.0 |
| 10 | 45.01 | 50.00 | 2.3 | 2.9 | 3.5 | 3.8 | 4.4 |
| 11 | 50.01 | 55.00 | 2.6 | 3.2 | 3.8 | 4.1 | 4.8 |
| 12 | 55.01 | 60.00 | 2.9 | 3.5 | 4.1 | 4.5 | 5.2 |
| 13 | 60.01 | 65.00 | 3.2 | 3.8 | 4.4 | 4.9 | 5.6 |
| 14 | 65.01 | 70.00 | 3.5 | 4.1 | 4.7 | 5.3 | 6.0 |
| 15 | 70.01 | 75.00 | 3.8 | 4.4 | 5.0 | 5.7 | 6.4 |
| 16 | 75.01 | 80.00 | 4.1 | 4.7 | 5.3 | 6.1 | 6.8 |
| 17 | 80.01 | 85.00 | 4.4 | 5.0 | 5.6 | 6.5 | 7.2 |
| 18 | 85.01 | 90.00 | 4.7 | 5.3 | 5.9 | 6.9 | 7.6 |
| 19 | 90.01 | 95.00 | 5.0 | 5.6 | 6.2 | 7.3 | 8.0 |
| 20 | 95.01 | 100.00 | 5.4 | 5.9 | 6.5 | 7.7 | 8.4 |
| _________________________________________ | |||||||
(f) The contribution rate to become effective July 1, 1977 and thereafter on July 1 of each year shall be the rate determined for that class into which the given employer is placed by application of this section.
(g) If, subsequent to the assignment of rates of contribution for any rate year, the benefit ratio of any employer is recomputed and changed, such employer shall be placed in that position on the list that he or she would have occupied had his or her corrected benefit ratio been shown on the list, but such altered position on the list shall not affect the position of any other employer.
(h) In the determination of a rate schedule, only the wages paid by employers liable for payment of contributions into the fund and benefit payments not reimbursable by employers liable for payments in lieu of contributions shall be considered in the computation of a current fund ratio and highest benefit cost rate. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 65, eff. Jan. 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1963, No. 106, § 2; 1965, No. 77, § 1; 1967, No. 159, § 1; 1969, No. 161 (Adj. Sess.); 1973, No. 31, § 1, eff. March 27, 1973; 1977, No. 64, § 14, eff. Jan. 1, 1977; 1983, No. 124 (Adj. Sess.), § 2; 2021, No. 51, § 9a, eff. June 1, 2021.)