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ESTIMATE CHARGEBACKS AND TAX RATES

 

(Please note: you will need to have JavaScript enabled in your browser in order to use the utilities on this page. Any results obtained by using this page are only estimates of benefit amounts, chargebacks, and tax rates; they do not constitute an official ruling or pronouncement of the Texas Workforce Commission. The usefulness of the estimates you obtain here will be dependent upon the quality of the information that you supply in the fields shown. Specific questions about chargebacks and tax rates should be directed to your local Tax Department representative or to the state office at 512-463-2700.)

 

ESTIMATE YOUR CHARGEBACKS

 

 

     

 

   

 

Click the "WBA" link below to estimate the weekly benefit amount (WBA) for the claimant (note: if the claimant has base period wages from other employers, the WBA may be higher (the maximum is $493/week), but your chargeback is based upon the wages your company reported, in comparison with other base period wages):

WBA:   

 

Click the "MBA" link below to estimate the claimant's maximum benefit amount (MBA) that can be charged back to your tax account if the claimant exhausts his or her available state unemployment benefits (note: if the claimant has base period wages from other employers, the MBA may be higher (the maximum is $12818 in state unemployment benefits), but your chargeback is based upon the wages your company reported, in comparison with other base period wages):

MBA:   

 

 

ESTIMATE THE EFFECT OF CHARGEBACKS ON YOUR TAX RATE

 

(Please note: Employers within their first six calendar quarters of operation will generally have the "new employer" tax rate of 2.70%. The tax rate estimation utility below can give you an idea of how a particular amount of chargebacks might affect your tax rate, but it is not an official statement of your tax rate. Official notices of tax rates are issued by mail from the Tax Department in early December of each year. Specific questions about chargebacks and tax rates should be directed to your local Tax Department representative or to the state office at 512-463-2700.)

use the estimated chargeback amount above to obtain an estimate of the effect that one set of chargebacks would have on your tax rate). The more the figure matches the total chargebacks on your tax account, the more accurate the tax rate estimate will be. Enter that chargeback amount in the box below, omitting dollar signs, decimals, and commas (example: 4876):

  

 

  

 

If you do not have your 2015 C-22 handy, but remember your 2014 rates, click here to estimate what your OA tax would be for this year (you will need to insert your effective tax rate and obligation assessment rate for 2014, i.e., what those rates were for 2014 - remember: no percent signs). Click here if you do not have that information available, but would like to get a quick estimate based upon an average obligation assessment rate for 2015 (0.57%).
   

 




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The figure shown in the "Effective tax rate" field directly above is an estimate, based upon data relevant for 2015, of the rate you might have to pay in 2016 on the first $9000 of each employee's earnings if the chargebacks end up being as you have estimated them above. You can find official commentary from TWC's Tax Department concerning how your 2015 tax rate was calculated by visiting the following page: http://www.twc.state.tx.us/ui/tax/your-tax-rates.html.

 

  1. The benefit ratio is the central component of an experience-rated employer's tax rate and is the quotient of the three-year chargeback total divided by the three-year taxable wage total, rounded up to the next hundredth.
  2. The replenishment ratio, deficit tax, and obligation assessment tax are calculated by TWC each year based upon statewide data relating to total benefit payouts, uncollectible chargebacks, and interest/bond repayments (if any). For 2015, there is no deficit tax, but there is a "bond obligation assessment rate" (for repayment of bonds issued to cover the deficit in the UI trust fund) ranging from 0.06% to 1.08% - see your tax rate notice (Form C-22) for the exact figure. The OA tax for 2015 is the product of the OA ratio times the OA multiplier (determined by the agency and set at 0.17 and 1.00, respectively, for 2015) times the sum of the employer's prior year's general tax, replenishment tax, and deficit tax rates.
  3. The replenishment tax figure shown above includes the Employment and Training Investment Assessment, which is set by statute at a flat rate of 0.10% for all taxed employers. For purposes of calculating the OA tax (see footnote 2), the ETIA tax is not used.
  4. See footnote 2.
  5. See footnote 2.

 

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