Karlson Software Company is located in State H, which enables employers to reduce their contribution rates under the experience-rating system. From 2004 to 2013, inclusive, the company’s total contributions to state unemployment compensation amounted to $14,695. For the calendar years 2014 to 2017, inclusive, the contribution rate for Karlson was 2.7%.
The contributions of each employer are credited to an account maintained by the State Unemployment Compensation Commission. This account is credited with contributions paid into the account by the employer and is charged with unemployment benefits that are paid from the account. Starting January 1, 2018, the contributions rate for all employers in State H will be based on the following tax rate schedule:

Reserve Ratio                                                       Contribution Rate
Contributions falling below benefits paid............... 7.0%
0.0% to 7.9%............................................................... 5.5%
8.0% to 9.9%............................................................... 4.5%
10.0% to 11.9%........................................................... 3.5%
12.0% to 14.9%........................................................... 2.5%
15.0% or more............................................................. 1.5%
The annual payroll for calculation purposes is the total wages payable during a 12-month period ending with the last day of the third quarter of any calendar year. The average annual payroll is the average of the last three annual payrolls. The SUTA tax rate for the year is computed using the information available (benefits received and taxes paid) as of September 30 of the preceding year.
The schedule below shows the total payroll and the taxable payroll for the calendar years 2014 to 2017.

Unemployment benefits became payable to the company’s qualified unemployed workers on January 1, 2004. Between that time and September 30, 2017, total benefits amounting to $15,100.90 were charged against the employer’s account. Compute:
a. Contribution rate for 2018..................................................................................             %
b. Rate for 2018 if $2,000 additional benefits had been charged by mistake to the account of Karlson Software Company by the State Unemployment Compensation...............................................................................             %

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Calendar Year 2014 Taxable 2015 Taxable Total Payroll Payroll 2017 Taxable 2016 Total Payroll Taxable Payroll Total Payroll Total Payroll $12,000 11,750 12,250 12,500 Payroll Payroll $10,000 $11,000 $13,000 First Quarter . $12,000 $13,000 $10,000 $11,000 Second Quarter . Third Quarter .. Fourth Quarter... 9,300 9,350 11,750 12,500 13,000 11,400 12,400 12,200 12,750 12,200 12,700 12,000 13,750 11,500 12,750 9,300 9,350 14,000 12,500