Benefit Wage Ratio
A Benefit Wage Ratio compares the number of claimants charged against your account to the size of your work force.
When a claim is charged to your account, an amount equal to the taxable wage base is charged to your account.
All the Benefit Wage Charges assessed against you are added up, usually over the last three years. The Taxable Wages are added up over the same period. These Charges are divided by these Wages. The resulting percentage is what is called your Benefit Wage Ratio.
This Ratio is then applied to a table to determine your tax rate.
Only Delaware and Oklahoma use a Benefit Wage Ratio.