There are three separate components that determine a fully experienced employer's tax rate. (A fully experienced employer is an employer who is in his/her fifth year or more of business.)

1. The Chargeable Benefit Component (CBC) is made up of the total unemployment charges against the employer for the most recent 5 years.
2. The Account Building Component (ABC) is a reserve account for possible payment of future benefits. The amount required in this component is based on the payroll for the most recent year.
3. The Non-Chargeable Benefits Component (NBC) is used to pay benefits that cannot be charged to a specific employer's account.

All of these components are taken into consideration when determining an employer's tax rate. The maximum computed tax rate for 2003 for a fully experienced employer is 10.3%.  The lowest computed tax rate is .06%. This does not include any penalties for missing reports which could add up to another 3%.