OESC calculates employer contribution rates using the numbers that employers provide in their quarterly wage reports. The rate calculation involves dividing the benefit wage charges (BWC) into the timely taxable wages. The BWC ratio is the percentage of the amount of benefit wages charges are to the total.
Example - Benefit wage charge amount of $10,000 divided by the amount of timely taxable wages of $300,000 ends up with a benefit wage charge ratio of 3.3%. The $10,000 is 3.3% of the $300,000. The benefit wage ratio is then used to calculate the contribution rate according to the table in the Oklahoma Employment Security Act, which for 2021 comes to a contribution rate of 2.8%.
Note that the contribution rate is different than the benefit wage charges, which are the taxable base period wages reported by employers to OESC for claimants and used to determine benefits eligibility as a result of either total or partial unemployment.