Benefits are paid from the Unemployment Compensation Trust Fund and are charged to the experience rating record of the base period employers. Employers are charged for a percentage of the benefits paid to eligible unemployed workers in the same proportion as the wages used to qualify the individual. For example, if an unemployed worker has two base period employers, both of who paid the worker the same amount in wages, then both employer accounts would be charged 50% of the benefits paid to the worker. In some cases, an individual employer is not chargeable, in which case that employer's proportional share of the benefits paid are charged to the trust fund, which means that all employers who contribute to the trust fund share in the expense of the non-charged benefits. Benefit charges are set at the time a worker files an Initial Claim and the employer remains chargeable for the entire Benefit Year.

A taxable employer may be relieved of charges if the reason for separation was for any of the following:

1. Discharge for misconduct connected with the work.
2. Quit without good cause attributable to the employer.
3. Termination under a retirement plan with a mandatory retirement age.
4. Leaving due to a health condition.
5. Leaving or refusing employment that is considered unsuitable.

In addition, benefits will not be charged to the experience rating of a base period employer if:

1. An individual who works part-time for a base period employer continues to work his or her part time hours with that employer.
2. The individual was hired when an employee took family leave, and the individual's employment ended because the employee on family leave returned.