Karlson Software Company is located in State H, which enables employers to reduce their contribution rates under the experience-rating system. From 2002 to 2011, inclusive, the company's total contributions to state unemployment compensation amounted to $14,695. For the calendar years 2012 to 2015, 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, 2016, 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 2012 to 2015.

	Calendar Year
	2012		2013		2014		2015
	Total Payroll	Taxable Payroll	Total Payroll	Taxable Payroll	Total Payroll	Taxable Payroll	Total Payroll	Taxable Payroll
First Quarter	$12,000	$12,000	$11,000	$11,000	$13,000	$13,000	$10,000	$10,000
Second Quarter	11,750	11,750	11,500	11,400	12,750	12,700	9,300	9,300
Third Quarter	12,500	12,250	12,750	12,400	12,200	12,000	9,350	9,350
Fourth Quarter	13,000	12,500	12,500	12,200	14,000	13,750

Unemployment benefits became payable to the company's qualified unemployed workers on January 1, 2002. Between that time and September 30, 2015, total benefits amounting to $15,100.90 were charged against the employer's account. Compute:

In your computations, round amounts to the nearest cent. Round your final percentage answers to one decimal place.

a. Contribution rate for 2016. ___%

b. Rate for 2016 if $2,000 additional benefits had been charged by mistake to the account of Karlson Software Company by the State Unemployment Compensation Commission. ___%

(Please explain) Thank you :)