What is New-employer rate?

When a business registers for state unemployment tax, it has no track record of layoffs, so the state cannot calculate an experience-based rate. Instead it assigns a flat new-employer rate, often the state average for the industry, which the business pays until it accumulates enough history (typically two to three years) to be experience-rated.

HiringMath starts with a published base new-employer rate or a marked industry planning default. Employers should replace it with the assigned percentage on their state rate notice when available.