Employers who are newly liable for unemployment compensation taxes are assigned a standard tax rate equal to the average rate of contributions paid by all employers during the preceding year, or 2.7 percent, whichever is higher. A new employer rate remains in effect until the employer can be rated based on experience. It is a four to five year period before an experience rate can be assigned depending on the date of liability. All new employers, including construction companies, are assigned the same standard rate.
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