Contribution Rates
OESC calculates employer contribution rates using the information provided in an employer's quarterly wage reports, as well as the state's experience factor and conditional factor. The rate calculation involves dividing the benefit wage charges (BWC) into the timely taxable wages to create a benefit wage ratio. That ratio is then used to calculate the employer's contribution rate using the rate table that can be downloaded from below. After finding the benefit wage ratio in the table row for the current year state experience factor, the corresponding tax rate can be found directly underneath. The current year conditional factor calculation must then be applied, which for rates of 0.1% to 0.9%, simply add 0.6%. For rates of 1.0% or greater, multiply the rate by 1.667.
Employers can manage their accounts, pay contributions, file reports, protest charges and more through OESC's Employer Portal and EZ Tax systems.
The rate for newly established employers is 1.5%. All new employers will start out at this rate until they build an experience history of at least four quarters within a rate cycle. Established employers who have filed four consecutive no-wage reports will revert to the new employer rate during the next calendar year. The best way to keep rates low is to respond to all notices, review determinations, submit quarterly contribution reports and pay the applicable tax in a timely manner. State law does not allow for a reduction of employers rates. A rate protest can only challenge benefit wage ratio calculations and timely taxable wage numbers.
| Conditional Factor | D |
| State Experience Factor | 50% |
| Range of Rates |
0.3% to 9.2% |
| Taxable Wage Base |
$27,000 |
| Maximum Weekly Benefit | $519 |
| Maximum Benefit Amount | $8,304 |
| Maximum Benefit Wage Charge | $24,912 |
| Average Annual Wage | $53,983.15 |
| Average Weekly Wage | $1,038.14 |
Example
A benefit wage charge amount of $10,000 divided by the amount of timely taxable wages of $300,000 ends up with a benefit wage ratio of 3.3%. The $10,000 is 3.3% of the $300,000. The benefit wage ratio is then referenced on the rate table, using the state's current experience factor (50%), which shows a contribution rate of 1.7%. Since this rate is greater than 1.0%, multiply it by 1.667, which gives a final contribution rate of 2.8%.”
*Exception - rates of 3.4% or greater will not increase by more than 2% in two years.
A Notice of Employer Contribution Rate (OES-048) is sent at the end of September each year and includes employers rate for the upcoming calendar year. If there are any significant changes to employers account (i.e., increase in unemployment benefits claimed against your account, adjustments to the taxable wages, removal of a benefit wage charge, etc.), additional notices will be mailed for each year that has a rate impacted by the change. For more information about contribution rates and the various factors that go into it, refer to article 3 of the Oklahoma Employment Security Act.
Employers can protest contribution rates. To protest a Notice of Employer Contribution Rate (OES-048), submit an Employer Contribution Rate Protest Form (OES-048P) within 20 days of the date on the notice. If a protest is submitted after 20 days, it will not be considered. For the best and most efficient experience, download and open the form in a PDF reader application (e.g., Adobe Reader/Acrobat), complete the form and select "email form" on the bottom or submit to employerrates@oesc.ok.gov.
Appealing a Decision
When an employer disagrees with a contribution rate, the first step is to submit a protest. Typically, protests will be sufficient to resolve matters; however, there may be cases where an employer disagrees with a decision on a protest and wishes to file an appeal. The Assessment Board at OESC will hear cases concerning employer unemployment tax accounts, such as employer contribution rates, whether a worker is an independent contractor or an employee, assessments of contributions or reimbursement payments, waivers of penalty or interest and more.
