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Show State Tax Rates For Unemployment Under Discussion WHAT kind of employment experience-rating Utah should apply in granting unemployment tax rate reductions to employers employ-ers is the topic of a new Utah Foundation research report released re-leased today. Calling attention to the present Utah law which provides for the pay-roll variation vari-ation plan until January 1, 1950, with the charge-back plan becoming be-coming effective on that date, the report points out the direction given to the Legislative Legisla-tive Council to study the two plans and report its recommendations recommen-dations to the 1949 Legislature. The Utah Foundation report stresses the importance of the issue to all Utah employers, urging urg-ing careful study of the two plans. In explaining the two plans, the research report states that the charge-back plan assumes as-sumes a measurable relationship between the employer's type of business and employment practices, prac-tices, and the amount of calls which his employees will make upon the unemployment fund. 1 i i THE pay-roll variation plan allows a reduction in unemployment unemploy-ment tax rates to employers based upon the ratio of their quarterly and annual pay rolls to those of previous periods. The pay-roll variation plan places less emphasis on the individual employer's responsibility for unemjiloyment compensation claims by his employees, emphasizing em-phasizing instead the maintenance mainten-ance of stable pay rolls as a measure mea-sure of the unemployment tax rate. Utah was among the last four states to adopt experience-rating as part of the unemployment compensation tax. program. Since experience-rating is the only method under Federal law by which unemployment tax reductions re-ductions may be granted to employers, em-ployers, Utah employers paid the standard tax rate until July 1, 1947. The unemployment compensation com-pensation fund has reached an amount exceeding $32,600,000, and is still increasing, so that most opinions agree that tax reductions re-ductions can be allowed without impairing a desirable safety margin to' meet unemployment benefit needs. The method of determining' de-termining' which employers are entitled to such tax rate reductions reduc-tions is the point to be decided. i |