Rate Computation
State Premium Rate Computation
New 2025 Employer Premium Rates
Employers receive a notice from the Department of Workforce Development with their 2025 applied rate sent to the mailing address provided to the Agency. The applied rate is a combination of the premium rate and the solvency surcharge. The solvency surcharge for 2025 is 0 percent of the premium. If an employer wishes to estimate the rate, follow the steps below.
First, determine the Premium Rate:
How to Determine the Premium Rate
The premium rate will be determined based on the employer’s individual experience account status as of June 30th of each year.
The premium rate is determined by following these steps:
- Determine the type of UI premium rate (new employer, penalty or merit).
- Determine the experience rate ratio.
- Determine the premium rate from the applicable schedule.
- Determine the Applied Premium Rate (the premium rate multiplied by 1.00 to reflect the interest surcharge).
Determine the type of UI premium rate
There are three types of UI premium rates:
| Premium Type | Rate |
| New Employer | 2.5% Regular, 1.6% Government |
| Penalty | Rate is 2% higher |
| Merit | Based on the past 36 months, and your rolling experience balance. |
New Employer Rate: A new employer rate of 2.5%, NAICS code 23 of 2.50%, or a government rate of 1.6% applies unless the following conditions are met:
1) The Employer has been subject to paying UI premiums for the past 36 months prior to June 30.
2) The Employer has been reporting liability in each of the three 12-month periods immediately preceding June 30.
3) The Employer is not subject to the penalty rate.
New employers are exempt from the solvency surcharge.
Penalty Rate: Any employer, new or merit-rate can be assessed the penalty rate. The penalty rate is the rate as calculated in step 1 or 3 plus 2%. Employers are subject to the penalty rate if:
They fail to file any required quarterly report, pay the premiums, interest and/or penalty charges owed, or pay the premiums, interest and/or penalties charges owed by a predecessor account within 10 days of the specific date requested by the Merit Rate Delinquency Notice sent by certified mail.
Merit Rate: Employers that no longer hold new employer status and are not subject to the penalty rate qualify for an experience-based merit rate.
A merit rate is computed based on the Employer’s experience balance as of June 30th and the Employer’s past 36 months’ payroll.
Determine the Employer experience rate ratio
The Employer’s merit rate is based on the status of their DWD employer experience account. The experience account compares all premiums (contributions) paid into their account and all benefits charged against their account.
Be sure to convert to a ratio (percentage) prior to comparing it to the appropriate rate chart.
Determine the Employer’s premium rate from the applicable schedule
The Employer’s experience account will have one of the following status designations:
Credit reserve balance
Be sure to convert to a percentage prior to comparing it to the appropriate rate chart.
The surcharge for 2025 is 0 percent. The charts below convert the premium rate to applied rate for 2025.
Applied Rate Schedule for Accounts with a Credit Reserve Balance as of June 30.
| As Much As | But Less Than | Premium Rate | Applied Rate | Penalty Rate |
|---|---|---|---|---|
| 3.00 | Maximum | 0.50 | 0.500 | 2.500 |
| 2.80 | 3.00 | 0.70 | 0.700 | 2.700 |
| 2.60 | 2.80 | 0.90 | 0.900 | 2.900 |
| 2.40 | 2.60 | 1.20 | 1.200 | 3.200 |
| 2.20 | 2.40 | 1.40 | 1.400 | 3.400 |
| 2.00 | 2.20 | 1.60 | 1.600 | 3.600 |
| 1.80 | 2.00 | 1.80 | 1.800 | 3.800 |
| 1.60 | 1.80 | 2.00 | 2.000 | 4.000 |
| 1.40 | 1.60 | 2.30 | 2.300 | 4.300 |
| 1.20 | 1.40 | 2.50 | 2.500 | 4.500 |
| 1.00 | 1.20 | 2.70 | 2.700 | 4.700 |
| 0.80 | 1.00 | 2.90 | 2.900 | 4.900 |
| 0.60 | 0.80 | 3.10 | 3.100 | 5.100 |
| 0.40 | 0.60 | 3.40 | 3.400 | 5.400 |
| 0.20 | 0.40 | 3.60 | 3.600 | 5.600 |
| 0.00 | 0.20 | 3.80 | 3.800 | 5.800 |
Debit reserve balance
Applied Rate Schedule for Accounts with a Debit Reserve Balance as of June 30.
| As Much As | But Less Than | Premium Rate | Applied Rate | Penalty Rate |
|---|---|---|---|---|
| 0.00 | 1.50 | 4.90 | 4.900 | 6.900 |
| 1.50 | 3.00 | 5.10 | 5.100 | 7.100 |
| 3.00 | 4.50 | 5.30 | 5.300 | 7.300 |
| 4.50 | 6.00 | 5.50 | 5.500 | 7.500 |
| 6.00 | 8.00 | 5.70 | 5.700 | 7.700 |
| 8.00 | 10.00 | 6.00 | 6.000 | 8.000 |
| 10.00 | 12.00 | 6.40 | 6.400 | 8.400 |
| 12.00 | 14.00 | 6.80 | 6.800 | 8.800 |
| 14.00 | 16.00 | 7.10 | 7.100 | 9.100 |
| 16.00 | maximum | 7.40 | 7.400 | 9.400 |
