The Urban Institute and Upjohn Institute will (1) write a comprehensive Unemployment Insurance (UI) Financing Guidebook and (2) analyze and simulate alternative methodologies for assigning tax rates in state UI programs. The guidebook is intended to assist program state and national analysts and policymakers in evaluating a wide range of taxation policy issues. It will report best practices used by states in their tax structures and offer specific recommendations appropriate for construction of an adequate financing structure. The analysis of alternative tax structures will focus on the feasibility and impact of adopting different methods of experience rating of UI taxes. It will describe current procedures, analyze their advantages and disadvantages, develop alternative approaches of UI payroll taxation, and simulate the alternatives using employer-level UI data.