Benefit Wage Charges
Benefit wage charges are the taxable wages reported by employers in their quarterly wage reports. These charges help determine an employer's benefit wage ratio, which is used to calculate the annual contribution rate. Once a benefit wage charge is applied to the account, it will remain for three calendar years before it is removed from your annual rate calculation.
When an individual is approved for unemployment benefits and gets their fifth week of benefits, OESC mails a Notice of Benefit Wages Charges (OES-502) to each of the claimant’s base period employers. The regular base period is the first four of the last five completed calendar quarters. This means employers may get this notice for an employee who left their business over a year prior. This notice lists these benefit wage charges. Learn more about the contribution rates and its calculation below.
Employers can choose to protest this Notice of Benefit Wages (OES-502) electronically using the Employer Portal. Additionally, the portal can be used to:
- receive electronic notifications for benefit wage charges
- manage their accounts
- pay contributions
- file reports
- view and track electronic communications/notices
- respond to notices
- protest charges
View and respond to Benefit Wage Charges notices online via the OESC Employer Portal.
Employers can protest benefit wage charges. Protesting a Notice of Benefit Wages (OES-502) must be done within 20 days of the date on the notice, and can be done online through OESC’s Employer Portal or by submitting a Benefit Wage Charge Protest Form (OES 502P). If a protest is submitted after 20 days, it will not be considered unless "good cause" can be provided (see Oklahoma Administrative Code 240:10-11-24).
Appealing a Decision
When an employer disagrees with a benefit wage charge, 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.
Employers may receive one of the two notices.
- A Notice of Cancellation of Benefit Wages is issued if the base period charge has been canceled and will not be used in computing the employer's annual contribution rate.
- A Notice of Determination to Base Period Employer is issued if the base period charge will remain and be used to compute the rate.
Employers have the right to appeal this determination in writing within 20 days from the date the determination was mailed.
