All new Idaho businesses that have employees begin with the same standard Unemployment Insurance tax rate. After a qualifying period of six calendar quarters ending on June 30, a new business that has employees may be eligible for a reduced rate during the next calendar year. After that time period employers’ tax rates will increase or decrease depending on their individual experience rating with the Unemployment Insurance program. This rating is calculated by subtracting the employer’s accumulated benefit payments from the employer’s accumulated tax payments, and then dividing it by the employer’s average taxable payroll. The resulting ratio is used to determine the tax rate to be assigned.