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Video instructions and help with filling out and completing Can 940 Schedule Reduction Rates

Instructions and Help about Can 940 Schedule Reduction Rates

All right I think we're going to go and get started I appreciate everybody participating this morning first afternoon I should say we thought around since this is about the time that employers start receiving their unemployment tax rates for the next calendar year it might be a good thing to go ahead and explain some you know terminology and explain how you get your unemployment tax rate there is some of our friends on the line here are actually from the school districts and stuff like that I'll explain a little bit about the reimbursable status as since that is how you pay your unemployment tax as well so the get started here here are some UI tax rate basics okay and there are two basic types of Merit Systems and that is the merit system meaning these are the types of unemployment accounts that pay the quarterly payroll tax and the two basic types of systems are one is the Reserve account method and that is a trait that is based on a ratio of the employers reserve account balance divided by an average taxable payroll when the employers pay their quarterly payroll tax for sudha they pay into a reserve account and that is a balance that they maintain year in and year out that balance is based on contributions less any benefits paid and that is what determines your account balance okay so the then that account balance is applied to an average taxable payroll figure that changes every year during the calculation period of your of your UI tax and that determines a ratio and that ratio is what determines your unemployment tax rate this method tends to avoid massive swings and rates because if you're talking about an account balance that it grows and...