If the amount in the Unemployment Insurance Trust Fund is at least 1.2% of the total payrolls of all contributing employers for the previous 12 months, each employer's unemployment tax rate will be reduced by whichever of the following methods results in the lower tax rate:

(1) Deduct 10% from each component (ABC, NBC, and ABC) of an employer's unemployment tax rate and then add together the reduced components, or

(2) Deduct 0.1% from the employer's total unemployment tax rate, or

(3) Deduct 10% of the total rate.

The employer is then given the lowest rate (minimum 0.1% reduction).

This does not apply to an employer already at the minimum tax rate for the year, or to an employer with fewer than four consecutive years of liability under the Act.