Applebaum Security Company is located in State H, which enables employers to reduce their contribution rates under the experience-rating system. From 2006 to 2015, inclusive, the company?s total contributions to state unemployment compensation amounted to $18,135. For the calendar years 2016 to 2019, inclusive, the contribution rate for Applebaum was 3.7%.

The contributions of each employer are credited to an account maintained by the State Unemployment Compensation Commission. This account is credited with contributions paid into the account by the employer and is charged with unemployment benefits that are paid from the account. Starting January 1, 2020 the contributions rate for all employers in State H will be based on the following tax rate schedule:

Reserve Ratio ............................................................................ Contribution RateContributions falling below benefits paid........................ ? ? ? ? ? ? ? ?7.0%0.0% to 7.9%................................................................. ? ? ? ? ? ? ? ? ? ? ? 5.5%8.0% to 9.9%................................................................. ? ? ? ? ? ? ? ? ? ? ? 4.5%10.0% to 11.9%............................................................. ? ? ? ? ? ? ? ? ? ? ?3.5%12.0% to 14.9%............................................................. ? ? ? ? ? ? ? ? ? ? ?2.5%15.0% or more............................................................... ? ? ? ? ? ? ? ? ? ?1.5%

The annual payroll for calculation purposes is the total wages payable during a 12-month period ending with the last day of the third quarter of any calendar year. The average annual payroll is the average of the last three annual payrolls. The SUTA tax rate for the year is computed using the information available (benefits received and taxes paid) as of September 30 of the preceding year.

The schedule below shows the total payroll and the taxable payroll for the calendar years 2016 to 2019.

Unemployment benefits became payable to the company?s qualified unemployed workers on January 1, 2006. Between that time and September 30, 2019, total benefits amounting to $23,194.15 were charged against the employer?s account. Compute:

a. Contribution rate for 2020.................................................................................. %b. Rate for 2020 if $2,000 additional benefits had been charged by mistake to the account of Applebaum Security Company by the State UnemploymentCompensation Commission .................................................................................. %

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Calendar Year 2018 Тахаble Payroll 2019 Total Taxable Payroll Payroll 2016 Total Тахаble Payroll Payroll 2017 Total Payroll Taxable Total Payroll Payroll First Quarter . Second Quarter .. | Third Quarter $12,000 $12,000 $11,000 | $11,000 $13,000 $13,000 | $10,000 $10,000 12,750 12,200 14,000 11,750 12,500 13,000 11,750 9,300 9,350 11,400 12,400 12,200 12,700 12,000 9,300 9,350 12,750 12,500 12,250 12,500 Fourth Quarter.. ..... 13,750