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Published on May 22
It’s no secret: unemployment claims can be costly. But properly preparing for and expertly managing claims that come through will prevent major headaches in the long run. Consider the following tips to reduce unnecessary unemployment claim payouts and protect your business reputation.
Comply with the Law and File On Time
Both federal and state laws apply when you are calculating your unemployment insurance responsibility. The important thing to remember is that you have some control. Each state determines the rate to charge a business based on its history of unemployment claims made by former employees. Rates can vary from as little as .55% to as much as 8.15%. Fewer unemployment insurance claims mean a lower rate for your company.
Stipulations and formulas defined by the Federal Unemployment Tax Act (FUTA) will also affect your current and future tax obligations.
In addition to ensuring to compliance with applicable state and federal law, it is vital to file unemployment taxes on time. If taxes are filed late, employers can face significant fines.
Document, Document, Document
Businesses with proper documentation can more easily dispute the validity of unemployment claims. Employers lose approximately 65% of disputed claims due to a lack of valid documentation. Ensuring you maintain updated personnel files can help you avoid this type of loss.
Among other things, be sure to file:
- Job descriptions (as provided to employees)
- Employee performance reviews
- Corrective action notices and summaries
- Signed acknowledgement forms expressing employees receipt of and agreement with company policies and procedures
Detailed documentation will significantly improve your chances of repudiating false claims, ultimately protecting you from higher unemployment insurance rates.
Simplify the Unemployment Claim Process
Unemployment regulations can be complex and confusing, and are often a source of endless frustration for employers. Outsourcing this task to an expert vendor can help to ensure that all of your claims are handled promptly and correctly.
Sheakley’s unemployment experts can take on every aspect of unemployment insurance management— from claims administration and auditing to proactive tax management and reporting. Our customized approach ensures you don’t overpay unemployment taxes and helps protect your business and your bottom line. Contact us today to learn more.