[ 1.2.1 - First Chargeable Quarter Defined ][ 1.2.2 - First Chargeable Quarter Except 201.022 ][ 1.2.3 - First Chargeable Special Situation ][ 1.2.4 - First Chargeable Quarter 9-99 ][ 1.2.5 - First Chargeable Quarter Section 201.022 ][ 1.2.6 - First Chargeable Quarter - Established Accounts ]

This section discusses what a first chargeable quarter is and how it is determined.

Accurate calculation of first chargeable quarters is crucial. The first chargeable quarter (FCQ) determines when an account will become chargeable for benefits. The first chargeable quarter also determines when an account becomes eligible for an experience rating.

When an Employer becomes liable under Sections:

Calculate the FCQ by comparing the First Wages date and the Subject date.

1. Count forward 2 quarters from First Wages date. This will normally be the proper FCQ.
   
   As an example consider an Employer subject 3-31-08 with First Wages 1-1-08. Counting forward 2 quarters from the First Wages date provides a FCQ of 3-08.
   
   
2. If the FCQ as determined in item #1 is earlier than the subject date, the proper FCQ will be one quarter past the subject date.
   
   For example consider an Employer subject 12-31-08 with First Wages 1-1-08. Counting forward 2 quarters from the First Wages date provides a FCQ of 3-08. Since 3-08 is earlier than the subject date the proper FCQ is one quarter past the subject date. The proper FCQ is 1-09.
   
   
3. If the FCQ is the same quarter as the subject date and the subject date does not occur within the first six days of July or October, the proper FCQ will be one quarter past the subject date.
   
   
4. If the FCQ is the same quarter as the subject date and the subject date occurs within the first six days of July or October a special situation may exist. See "First Chargeable Special Situation" below.

A special situation can exist where it is proper to have a FCQ in the same quarter as the subject date. This special situation arises only when the subject date is within the first six days of July or October and mostly involves liability by way of 20 weeks of employment.

If a FCQ is determined to be in the same quarter as the subject date:

1. Review the calendar to determine if the subject date is part of a week which began in the previous calendar quarter.
   
   
2. If the subject date is part of a week which began in the previous calendar quarter, it is proper for the FCQ to occur in the same quarter as the subject date.
   
   
3. If the subject date is not part of a week which began in the previous calendar quarter, the proper FCQ will be one quarter past the subject date.

As an example consider an Employer subject 7-5-08 with first wages on 2-19-08. Counting forward 2 quarters from the First Wages date determines a FCQ of 3-08. Since the subject date of 7-5-08 is part of a week which began in the second quarter of 2008, 3-08 is the proper FCQ. Please refer to the calendar below.

			JUNE	2008
S	M	T	W	Th	F	S
1	2	3	4	5	6	7
8	9	10	11	12	13	14
15	16	17	18	19	20	21
22	23	24	25	26	27	28
29	30

			JULY	2008
S	M	T	W	Th	F	S
		1	2	3	4	5
6	7	8	9	10	11	12
13	14	15	16	17	18	19
20	21	22	23	24	25	26
27	28	29	30	31

As another example consider an Employer subject 10-11-08 with First Wages on 5-21-08. Counting forward 2 quarters from the First Wages date determines a FCQ of 4-08. However, since the subject date of 10-11-08 is not part of a week which began in the third quarter of 2008, 4-08 is not the proper FCQ. The proper FCQ is 1-09. Please refer to the calendar below.

			SEPT	2008
S	M	T	W	Th	F	S
	1	2	3	4	5	6
7	8	9	10	11	12	13
14	15	16	17	18	19	20
21	22	23	24	25	26	27
28	29	30

			OCT	2008
S	M	T	W	Th	F	S
			1	2	3	4
5	6	7	8	9	10	11
12	13	14	15	16	17	18
19	20	21	22	23	24	25
26	27	28	29	30	31

9-99 is a fictitious FCQ which is used whenever a sole proprietor becomes liable under Section 201.022 with no transfer of experience and no employment. 9-99 is inserted to allow processing of the new account which could not occur without the FCQ field being completed.

If a sole proprietor becomes liable under Section 201.022 and is not acquiring experience from a predecessor account and does not have employment, use 9-99 as the FCQ.

Liability under Section 201.022 can occur with or without a transfer of experience from a predecessor Employer to a successor Employer.   See Chapter 16 - "Background" for SUTA Legislation effective 9-1-05.

1. If there is no transfer of experience from a predecessor Employer to a successor Employer the successor FCQ should be determined by counting forward 2 quarters from the First Wages date.
   
   As an example consider an Employer subject under Section 201.022 on 4-1-08 with First Wages on 4-1-08 with no transfer of experience from the predecessor. Counting forward 2 quarters from the First Wages date provides a FCQ of 4-08.
   
   
2. If there is a transfer of experience from a predecessor Employer to a successor Employer the successor's FCQ will be the same as the predecessor's FCQ.
   
   As an example consider an Employer subject under Section 201.022 on 4-1-08 with First Wages on 4-1-08 with a transfer of experience from the predecessor. If the predecessor's FCQ is 1-08. The successor's FCQ is also 1-08.
   
   
3. If there is a transfer of experience from a predecessor Employer to a successor Employer and the predecessor's FCQ is 9-99 calculate the successor's FCQ by counting forward 2 quarters from the First Wages date.
   
   As an example consider an Employer subject under Section 201.022 on 4-1-08 with First Wages 4-1-08 with a transfer of experience from the predecessor. The predecessor in this situation became subject under Section 201.022, with no transfer of experience, never had employment and was assigned a FCQ of 9-99. The successor's FCQ will be calculated by counting forward 2 quarters from the First Wages date. The successor's FCQ is 4-08.
   
   
4. If there is a transfer of experience from all of multiple predecessors to a successor account, the successor's FCQ will be the same as the earliest FCQ of all the predecessors from which experience transferred.
   
   As an example consider an Employer becoming subject under Section 201.022 on 4-1-08 with First Wages on 4-1-08 by acquiring multiple predecessors with a transfer of experience from each of the predecessors. If the predecessor FCQs are; 1-83, 1-95, and 2-90, the successor FCQ will be 1-83.
   
   
5. If there is a transfer of experience from some, but not all, of multiple predecessor's, the successor's FCQ will be the same as the earliest FCQ of all the predecessors from which experience transferred.
   
   As an example consider an Employer becoming subject under Section 201.022 on 4-1-08 with First Wages on 4-1-08 by acquiring multiple predecessors with a transfer of experience from some (but not all) of the predecessors. If the predecessor FCQs from which experience transferred are; 1-83, 1-95, and 2-90, the successor FCQ will be 1-83.

If an established account acquires another established account the FCQ may or may not be affected.

1. If an established account acquires another established account and there is no transfer of experience the successor FCQ is not affected and should not be changed unless some other change (IE. change in the successors First Wages date) is made to the account.
   
   As an example consider an Employer subject 3-31-08 whose FCQ is 3-08 which acquires another Employer on 1-1-09 with no transfer of experience. The successor FCQ will remain 3-08.
   
   
2. If an established account acquires another established account and there is a transfer of experience the successor FCQ should only be changed if  the predecessor has an earlier FCQ.
   
   As an example consider an Employer subject 3-31-08 whose FCQ is 3-08 which acquires another Employer whose FCQ is 4-08 with a transfer of experience. The successor FCQ will remain 3-08.
   
   
3. If an established account acquires another established account and there is a transfer of experience the successor FCQ should be replaced with the predecessor FCQ if the predecessor FCQ is earlier than the successor FCQ.
   
   As an example consider an Employer subject 3-31-08 whose FCQ is 3-08 which acquires another Employer whose FCQ is 1-06 with a transfer of experience. The successor FCQ should be changed to 1-06.
   
   
4. If an established account acquires multiple predecessor accounts and there is a transfer of experience, the successor FCQ should be replaced with the earliest FCQ of all predecessors provided that a predecessor FCQ is earlier than the successor FCQ.
   
   As an example consider an Employer subject 3-31-08 whose FCQ is 3-08 which acquires multiple Employers whose FCQs are; 1-95, 1-60, 1-80 with a transfer of experience. The successor FCQ should be changed to 1-60.