Size of fund index

Official source

To link the normal and subsidiary rates to the overall condition of the UI fund, the law establishes various series of rates for qualified employers. A size of fund index determines which of these series is to be used for a particular calendar year. This index is the ratio of the balance in the fund as of December 31 to whichever is the higher: (1) total wages subject to contribution for all employers in the last preceding payroll year, or (2) the average of total wages subject to contribution for all employers for the five preceding payroll years. The size of fund index percentage is shown on the annual notice of UI rates sent to each employer. Size of fund index percentages may be obtained by calling the Department of Labor, Employer Account Adjustment Section (see Unemployment insurance issues – Where can I find the answers? ).

loading…

Size of fund index

Official source

To link the normal and subsidiary rates to the overall condition of the UI fund, the law establishes various series of rates for qualified employers. A size of fund index determines which of these series is to be used for a particular calendar year. This index is the ratio of the balance in the fund as of December 31 to whichever is the higher: (1) total wages subject to contribution for all employers in the last preceding payroll year, or (2) the average of total wages subject to contribution for all employers for the five preceding payroll years. The size of fund index percentage is shown on the annual notice of UI rates sent to each employer. Size of fund index percentages may be obtained by calling the Department of Labor, Employer Account Adjustment Section (see Unemployment insurance issues – Where can I find the answers? ).