Arizona Administrative Code › Title 6 - ECONOMIC SECURITY › Chapter 3 - DEPARTMENT OF ECONOMIC SECURITY - UNEMPLOYMENT INSURANCE › Article 17 - CONTRIBUTIONS › Section R6-3-1711 - Computation of Experience Rates

Current through Register Vol. 30, No. 28, July 12, 2024
A. An employer whose account has been
				chargeable for benefits throughout the twelve month period immediately
				preceding the July 1 computation date shall receive a computed rate for the
				following calendar year as prescribed in A.R.S. §
									23-730.
B. The term chargeable means that an employer
				has been subject to potential charges resulting from benefit payments that
				could have been made if claims were filed. For purposes of establishing the
				rate for new accounts, the date upon which an employer's account becomes
				chargeable for benefit payments is either the first day of the second quarter
				following the end of the first quarter of wage payments after coverage began,
				or on the first day of the calendar quarter after the quarter in which the
				employer became liable under A.R.S. §
									23-613,
				whichever is later.
C. The amount
				of contributions used to compute an employer's reserve ratio includes all
				contributions paid on or before July 31 or the next business day if July 31
				falls on a Saturday, Sunday, or a legal holiday. Contributions shall not
				include payments of interest or penalties, or payments of contributions paid on
				or before July 31 and subsequently refunded on or before October 31.
D. The amount of benefit charges to compute
				an employer's reserve ratio includes the employer's share of the amount of all
				checks issued on or before June 30 for the payment of benefit claims determined
				chargeable against the employer's account. Credits resulting from erroneous
				payment of benefits shall be reflected in the quarter in which the error was
				established pursuant to A.C.R.R.
				R6-3-1708(B).
E. Average annual payroll used to compute an
				employer's reserve ratio includes the average of the taxable wages reported on
				or before the following October 31, or estimates and assessments made for the
				required quarterly reports through the period ending June 30.
F. Estimates of taxable payroll as provided
				in A.R.S. §
									23-731
				for any quarter in which a required report has not been filed shall be based on
				the best information available to the Department or the highest amount of
				taxable payroll reported on the last three quarterly reports submitted
				immediately preceding the delinquent quarter(s). However, when no reports have
				been filed or when the reports submitted reflect no wages paid, the estimate(s)
				shall be based on the average of taxable wages for all experience rated
				employers for the prior fiscal year.
G. Notwithstanding subsections (A) and (B),
				an employer who succeeds to or acquires a business or a distinct and severable
				portion of a business between July 1 and December 31 of a calendar year, shall
				have the experience rating account of the predecessor used in computing its
				rate for the following calendar year if either the predecessor or successor
				informs the Department of the acquisition prior to the date its rate becomes
				final for the calendar year following the year of acquisition. If only a
				portion of the business was acquired, the provisions of A.R.S. §
									23-733(B)
				 and A.C.R.R.
				R6-3-1713(D)
				must also be met.