H.F. 2012 Section 1. Section 96.7, subsection 2, paragraph c, 1 subparagraph (3), Code 2011, is amended to read as follows: 2 (3) Thereafter, the employer’s contribution rate shall be 3 determined in accordance with paragraph “d” , except that the 4 employer’s average annual taxable payroll and benefit ratio 5 may be computed, as determined by the department, for less 6 than five three periods of four consecutive calendar quarters 7 immediately preceding the computation date. 8 Sec. 2. Section 96.7, subsection 2, paragraph d, 9 subparagraph (2), unnumbered paragraph 3, Code 2011, is amended 10 to read as follows: 11 “Benefit ratio” means a number computed to six decimal places 12 on July 1 of each year obtained by dividing the average of all 13 benefits charged to an employer during the five three periods 14 of four consecutive calendar quarters immediately preceding 15 the computation date by the employer’s average annual taxable 16 payroll. 17 Sec. 3. Section 96.19, subsection 2, Code 2011, is amended 18 to read as follows: 19 2. “Average annual taxable payroll” means the average of the 20 total amount of taxable wages paid by an employer for insured 21 work during the five three periods of four consecutive calendar 22 quarters immediately preceding the computation date. 23 EXPLANATION 24 This bill reduces the years of experience used to calculate 25 the benefit ratio for an employer’s contribution rate for 26 unemployment insurance from five to three. 27 -1- LSB 5344YH (4) 84 je/rj 1/ 1