Evening star., 1940-02-17

against tne pooled account, or IN
Wisconsin, the balancing account.
I'm three States-Indiana, South
Dakota and Observation-Disclosures
contribution rates are changed au-
tomatically in accordance with pro-
visions of the State unemployment
compensation law. These laws
establish q schedule OF categories
of reserve ratios Cor reserve per-
centages) with a contribution rate
applicable to each ratio. To obtain
a reduction below the standard con-
tribution rate (27 per cent Of total
covered pay rolD an employer is
required to have had one years
benefit experience, and his reserve
must equal at least five times the
largest amount of benefits charged
to his account in any one Of the
three preceding years.
THE reserve requirements to OBJ
tain given reduced contribution
rates and the conditions under
which rates are increased in the
three States of the automatic type
vary according to each State law,
as follows:
"Indiana-Reduced rates: If an
employers reserve ratio is rs to IL
per cent, his contribution rate is
2 per cent; If his reserve ratio Is
II to Is per cent, his rate is l pei
cent; if his reserve ratio exceeds
IS per cent, his rate is Obs per cent.
However, If the pooled account on
January l and July l of any year
amounts to less than $4,000, 900,
an emergency shall be declared,
and amounts equal to l per cent
of pay rolls for six months there
after shall be credited to the pooled
account.
Increased rated: If benefits paid
from an employers account exceed
contributions to such account, the
rate is increased to 81 per cent.
No Increase In South Dakota.
South Dakota-Decreased rates:
If the reserve ratio is 7.5-10 per cent,
the rate is 2 per cent; II the reserve
ratio is 10-125 per cent, the rate
is l per cent; If the reserve ratio
Is 125 per cent or over, contribu-
tions cease. There is no provision
for increased rates.
ACKNOWLEDGMENT rates: If
the reserve percentage is 1910 per
cent, the rate is per cent; if the
reserve is 10 per cent or over, con-
tributions cease.
Increased rates: If benefits have
not been payable from the reserve
during the preceding calendar year,
or the reserve does not equal at
least five times the largest amount
Of benefits charged in any one of
three preceding years, and If the
reserve percentage is ASA per cent
the rate is 80 per cent; if the re-
serve percentage is under IS per
cent, the rate is 81 per cent; If the
reserve account is overdrawn, the
rate is 4 per cent.
IT the funds balancing account
is under $500, 600, each employer
from whom benefits have been pay-
able for the last three years con-
tributes to such account l per cent
OF his positive net reserve at the
close of the most recently COM
pleted calendar year, in addition to
his contribution, If any, to his re-
serve account.
Nebraska Provides Modification.
The Nebraska experience rating
plan gives the State agency some
discretion in modifying contribu-
ton rates. No employers rate shall
be less than 81 per cent unless he
has had one year of benefit expert
ence. If his reserve equals at least
five times the largest total amount
OF benefits charged in any one of
the three preceding years, and If his
reserve amounts to rs per cent of
the preceding years pay roll, the
rate may be reduced below az Der
cent, but it must be such as the COM
missioner finds necessary to MAIN
tain such reserve at 71a per cent of
the employers pay roll during the
ensuing year. No increase in rates
is provided.
During emergency periods, de-
clared when the pooled account is
under 100000, OBS per cent of each
employers contribution is credited
to the pooled account, and no rate
shall be less than 0.25 per cent dur
ing such emergency"