How to Write an Essay by Cecilia Minden

By Cecilia Minden

A proof of what an essay is and how one can write them.

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Example text

Thus, if the taxable wage base is $10,000 and the employer's workforce falls from 500 at the beginning of the calendar year to 400 at the end of the year, the taxable payroll is assumed to be ($10,000) (1/2) (500 + 400) = $4,500,000. The preceding approximation of the taxable payroll may be distorted for two reasons. First, employment growth may not be smooth between January 1 and December 31, so that the average employment in the example may not be 450. Second, even if the level of employment does not change during the year, interfirm labor turnover tends to influence the size of the taxable payroll.

Our approximation of the taxable payroll may be stated in equation form: Page 22 where Ntrepresents employment at year-end and Nt1 represents employment at the beginning of year t. In general, the subscript t refers to a calendar year. The equation relates to the formal analysis that will be developed in later chapters. Charged Benefits An employer's unemployment experience is measured by his/her charged benefits (CB) under both the reserve and the benefit ratio methods of experience rating. Charged benefits are the total annual unemployment benefits that have been paid to the employer's laid-off workers and that have been deemed to be chargeable to the employer's account.

At the end of a year t, the balance (Bt) which may be negative, is thus equal to all past tax payments minus all past charged benefits. As noted before, according to current laws, the employer neither receives interest on positive balances nor pays interest on negative balances. The employer's reserve ratio (RR) is defined as the ratio of the balance to the taxable payroll, where the latter is usually averaged over the past three-to-five calendar years. The reserve ratio is usually expressed as a percentage.

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