Excess Reserves Reserve percentage limits for employers are a positive 50 percent or a negative 25 percent. Amounts in excess of these limits are transferred either to or from the solvency account. All wages subject to contribution reported for the computation period and received prior to December 31 of each year are used in the rating process. Payments received after October 31 of each year are not used in the rating process. Estimated wages are based on the highest wages subject to contribution filed in the computation period.
Estimates usually result in a higher rate for the following year.
If an employer reports no wages subject to contribution during the applicable computation period, DET will assign a rate based on a positive or negative account balance as of the computation date. The result of dividing your account balance by your wages subject to contribution is called your reserve percentage. An account with a positive balance will have a positive reserve percentage. Negative balance accounts will have negative reserve percentages. The rate schedule for all employers is determined by the reserve percentage of the unemployment compensation fund.