Job & Family Services Office of Unemployment Compensation
Office of Unemployment Compensation

Contribution Rates

For 2012, 2013 and 2014 the ranges of Ohio unemployment tax rates (also know as contribution rates) are as follows:

                                                       2012          2013          2014

Lowest Experience Rate                      0.7%          0.3%          0.3%
Highest Experience Rate                     9.1%          8.4%          8.5%
Mutualized Rate                                 0.4%          0.0%          0.0%
New Employer Rate                            2.7%          2.7%          2.7%     *except construction
*Construction Industry                       7.0%          7.7%          7.2%
Delinquency Rate                             11.4%         10.5%         10.6%

Rate Notification

Contribution Rate Determinations are mailed for the coming calendar year on or before December 1. The tax rate is also printed on the employer's Quarterly Tax Return (JFS-20127), which is mailed to employers quarterly for reporting and payment of taxes due. To determine how much tax is due each quarter, multiply the rate by the total taxable wages you paid during the quarter.

Experience Rate

Once an employer's account has been chargeable with benefits for four consecutive calendar quarters ending June 30, the account becomes eligible for an experience rate beginning with the next calendar year. The experience includes taxable wages reported, contributions paid (including voluntary payments) and benefits charged. Unemployment taxes paid are credited to an employer's account. Unemployment benefits paid to eligible claimants are charged to the accounts of the claimant's employers during the base period of the claim. These factors are recorded on the employer's account and are used to compute the annual tax rate after the employer becomes eligible for an experience rate.

Due to recent economic conditions and the resulting increase of unemployment claims filed, the Ohio Unemployment Compensation Trust Fund is more than sixty percent below the "minimum safe level" as of the computation date of the 2014 rates (The "minimum safe level" is, in essence, the balance required in the UC Trust Fund to fund a moderate recession). Therefore, the tax rate schedule in effect for 2014 includes an across the board minimum safe level increase to protect the financial integrity of the trust fund. This increase will help re-build the trust fund to the appropriate level. The additional taxes paid as a result of the minimum safe level increase are credited fifty percent (50%) to the mutualized account and fifty percent (50%) to the employer's account.

The experience rate shown on the Contribution Rate Determination is a combined total of the employer's individual experience rate and the minimum safe level increase.

Mutualized Rate

The primary purpose of the mutualized account is to maintain the unemployment trust fund at a safe level and recover the costs of unemployment benefits that are not chargeable to individual employers. These costs are recovered and the money restored to the fund through the mutualized tax levied on all contributory employers. The mutualized tax is used solely for the payment of benefits. For calendar year 2014, the mutualized rate is 0.0%.

New Employer Rate

If an employer's account is not eligible for an experience rate, the account will be assigned a standard new employer rate of 2.7% unless the employer is engaged in the construction industry, in which case the 2012 rate is 7.0%, the 2013 rate is 7.7% and the 2014 rate is 7.2%.

Delinquency Rate

Employers who did not furnish the wage information necessary for the computation of their 2014 experience rate by the time the 2014 rates were calculated, are assigned a contribution rate equal to one hundred twenty-five percent (125%) of the maximum experience rate possible for 2014. However, if the employer files the necessary wage information by December 31, 2013, the rate will be revised to the appropriate experience rate.

Penalty Rate

Employers who file the necessary wage information after December 31, 2013, but within 18 months after that date, will have their 2014 rate revised to one hundred twenty percent (120%) of the rate that would have applied if the employer had timely furnished the wage information.