Section 59 Benefit Charging and Experience Rating

• Library: Employer-Employee Law 2008

An understanding of some of the basics of benefit charging and experience rating will be helpful to the practitioner in estimating the potential value of an unemployment insurance case. Employers are notified on a quarterly basis of any charges to their account. The charge is a pro-rata share based on wages paid by the employer in the base period to total wages in the base period. Section 288.100.1(1), RSMo Supp. 2007. For example, if the ratio produced by the employer’s wages to total base-period wages equals 25% and the claimant’s weekly benefit amount is $200, the charge to the employer will be $50 for each claim week during the quarter. These charges to the employer’s account may cause the employer’s tax rate to increase in the future.

Governmental and certain not-for-profit organizations may elect to become liable for payments in lieu of...