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Washington Administrative Code (Last Updated: November 23, 2016) |
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Title 192. Employment Security Department |
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Chapter 192-320. Experience rating and benefit charging. |
Section 192-320-020. How is the industry average calculated for rate years 2005, 2006, and 2007? (RCW 50.29.025.)
Latest version.
- (1) As used in this title:(a) "NAICS" is an abbreviation for North American Industry Classification System;(b) "Industry average array calculation factor rate" means the average experience-based tax rate for a particular industry. It will be referred to as the "experience tax."(c) "Industry average graduated social cost factor rate" is the average social tax rate for a particular industry. It will be referred to as the "social tax."(2) When calculating the experience tax and social tax, the department will use the first four digits of the NAICS code of the industry being calculated.(3) Experience tax.(a) The department will calculate the experience tax as follows:(i) A table will be prepared that contains each of the 40 rate classes;(ii) For each rate class, we will multiply, total, and display the taxable payrolls for all qualified employers assigned to that rate class with the NAICS code being calculated, by the percentage assigned to that rate class;(iii) We will total the tax rates for the 40 industry rate classes and divide the sum by the total of all payrolls used in the calculation; and(iv) We will add fifteen percent to the result, and show the final amount as a percentage rounded to two decimal places.(b) The experience tax must be at least 1.00 percent and not more than 5.4 percent.(4) Social tax.(a) The department will calculate the social tax as follows:(i) The experience tax table will show the percentage of the social tax assigned to each of the 40 rate classes;(ii) We will multiply, total, and display the total payroll in each industry rate class by the percentage of social tax assigned to that rate class;(iii) We will total the social tax rate for the 40 industry rate classes and divide the sum by the total of all payrolls used in the calculation; and(iv) We will add fifteen percent to the result, and show the final amount as a percentage rounded to two decimal places.(b) The social tax for an industry cannot be higher than the percentage of social tax assigned to rate class 40.(5) If there are no qualified employers in the four digit level of the NAICS code, we will calculate the rates using the corresponding three digit level and assign the result to the four digit level. If there are no qualified employers in the three digit level, we will calculate the rates using the corresponding two digit level and assign the result to both the three and four digit levels.(6) This section applies to rate years 2005, 2006, and 2007.