Experience rating

New York State UI Law provides for a system of experience rating under which employers’ normal and subsidiary rates are determined annually based on various factors including wages subject to contributions and benefits paid to former employees. For every liable employer, an account is set up to record the employer’s experience. All normal contributions received within 60 days of their due date are credited to the account, and all benefits paid to former employees and chargeable to the account are debited. A late payment of contributions due may result in an interest assessment and may also adversely affect an employer’s future UI rate (see Consequences of late or inaccurate reporting ).

Each employer’s account balance is computed on December 31 of each year (the computation date). The account balance is used to determine the account percentage that, in turn, is used to determine the employer’s normal and subsidiary rates.