legal-meeting

What Should Employers Do if They Receive False Unemployment Claims?

When an employee files an unemployment claim, you will receive a notice of their request for unemployment compensation

It is at this point that you have the option of protesting the claim, provided that you file your protest within the allotted timeframe listed on the notice.

It’s important that you provide the unemployment office with all relevant facts to your case, including pension, vacation pay, holiday pay, and all dates where issues took place. 

Once the unemployment commission makes a decision, you will have the option to appeal it if you feel it was made in error.

Common Grounds for Employer Protests 

If the employee quit working for your company, inform your state’s unemployment office exactly what they said or did to indicate their intention to stop working. If they simply stopped reporting to work, you should inform the office of the last day they did do any work. 

If the employee refused work that was offered, you should include information about how the offer was made to the claimant and why the claimant refused to do the work.

If your employee was discharged for issues related to drugs or alcohol, make sure that your discharge reason is in compliance with state laws regarding the subject.

notice-of-employee-termination

If you fired the claimant, you should note the date and reason for the firing. Provide a list of all the incidents and behaviors that lead to your firing of the employee. Particularly any violations of company policy.

If there is any question about the employee’s ability to work, this must be documented by your company. Unemployment insurance benefits will be paid if the individual is capable of working, is available for work, and is actively searching for work. 

One reason that cannot be used to protest unemployment claims is the lack of work in your company. Laying off an employee because there isn’t any available work is not grounds for protesting an unemployment claim.

Recommended Read: Know When and How to Protest Unemployment Claims

Avoiding Unemployment Claims in the Future 

There are several things you can do to prevent having unemployment claims filed against you.

Most of these actions should be taken long before employees have the opportunity to apply for unemployment compensation. In other words, right from the start of your association with an employee.

Place Employees in Their Ideal Roles

Probably the single most important thing you can do to avoid fraudulent claims is to ensure that the employee is positioned in the right role (i.e., one that he or she is completely capable of performing). 

This means you should avoid temporarily hiring people to fulfill a need that won’t last long. If you notice that employees are frequently being hired but then don’t work out, it might be worth your while to review your hiring practices. 

It may be that you need to implement some kind of proficiency test or a behavioral assessment. These can be better indicators of future employee success.

Communicate Expectations and Responsibilities from the Get-Go

Anytime you hire a new employee, you should set clear expectations of them from the outset. This way they have a good understanding of what kind of standard they will be measured against.

meeding-with-the-boss

When you do this, it will be clear to both parties whether or not the employee is actually living up to those expectations. 

If you don’t provide clear expectations for employees, then you can’t fault them for not living up to your vision of what makes a great employee. 

You need to explicitly state what the employee’s job responsibilities will be, what you expect from their behavior, and what kind of performance standards are in place in your organization.

Follow Through on Company Policies

Another thing that’s important to do is following through on any company policies you have set. You cannot simply look the other way when violations occur because that will send the wrong message to employees. 

Instead, when employees violate company policies, there should be some type of disciplinary action talent. This way the employee has a clear understanding that such behavior is unacceptable. 

It’s not enough to just distribute employee handbooks. Policies don’t carry any weight with employees when they see that they’re not being enforced or that the enforcement is inconsistent. 

This will always come back to bite you in any type of unemployment hearing.

Establish Effective Communication with Your Employees

You should also get into the habit of establishing good communication with your employees, so they are aware of company goals and how they fit into the big picture.

When employees have this kind of understanding, they tend to be more motivated and more productive.

Effectively Document Situations When They Arise

Whenever an employee does exhibit behaviors that are deemed undesirable, or when violations of company policy occur, you should definitely document these situations clearly and carefully.

heated-work-discussion

If precise details are required to document these kinds of events, you will have a written description of what occurred and on what date it occurred. 

This kind of documentation can support your protest if a fraudulent claim has been filed against you. Make sure to stay in compliance with all regulations regarding employer-employee relations, so that you’re not at fault as an employer. 

Keep in mind that if you were to cross the line in your relationship with an employee, then they can use that against you. They can negate your protest by claiming improper employer behavior, which can lead to you paying for their unemployment benefits.

Ally Your Business with Unemployment Tracker!

Dealing with unemployment fraud, especially if you own a large company, is a major hassle. Failure to track your unemployment claims can lead to you having to compensate people who don’t deserve it!

Sometimes, fraudulent unemployment claims are filed by people who never worked for your company. Unfortunately, these claims can fall through the cracks and take hard-earned money out of your pocket.

By partnering with Unemployment Tracker, you’ll be able to manage your unemployment claims more effectively than ever before. Additionally, we can help you protest unemployment claims filed against you, whether they are fraudulent or not. Don’t let people steal money from you! 

Take a look at our unemployment tracking software!

pandemic-unemployment

How Pandemic Unemployment Is Impacting Business Owners

As the global pandemic approaches the one-year mark, there is no question that it has had a major impact on business owners all over the United States. It has even forced some businesses to close their doors altogether.

Due to restrictions centered around gatherings, in-person visits have diminished, opening up the way for online commerce instead.

Many business owners have been forced to lay off employees because the volume of business they once enjoyed has declined, and they can no longer justify having those workers on hand.

Here are some of the other significant impacts that unemployment is having on business owners as a result of the COVID-19 pandemic.

How Pandemic Unemployment Impacts Business Owners 

When business begins to taper off, as it has for many owners due to COVID-19, it becomes a necessity to let some employees go. 

There’s not really any action required on your part aside from responding to the claim that will be made to your state for extended benefits.

The money that you are required to pay for unemployment taxes then becomes the source used by the state to provide unemployment benefits to those individuals filing claims.

In the event new layoffs result in an unemployment claim, the state will contact you to verify the details of employment. When a former employee files for unemployment benefits, you are required to respond to their claim notice, but you also have the option of contesting it.

business-contract-signing

Employees who are fired for just cause are typically not eligible for regular unemployment benefits, since the program was set up to assist workers who were laid off through no fault of their own or are unable to work due to reasons outside of their control.

Anyone who is terminated for violation of company policy, poor performance, or for any kind of misconduct will most likely not qualify for regular benefits.

In this scenario, you need to provide evidence that the employee violated company policy or provide some proof of misconduct on their part.

Once this is done, the state will make a determination on whether or not the employee should receive benefits.

Employees, however, have experienced a significant windfall, as they are now receiving an extra $600 per week on top of the standard weekly benefit amount that normally would have been awarded to them.

Recommended Read: Know When and How to Protest Unemployment Claims

The CARES Act 

Prior to the passage of the CARES Act (Coronavirus Aid, Relief, and Economic Security), it was not possible for business owners to collect unemployment for themselves if they fell into any of the following camps.

  • They were self-employed
  • They were a gig worker
  • They were an independent contractor

That was changed when the Act when into effect, and the business owners that were hit the hardest finally became eligible for regular unemployment benefits.

For owners who were prevented from earning a living during the COVID-19 pandemic, at least some relief was made available.

The only individuals not eligible for relief from this stimulus package are those who are still able to work from home or those who closed their doors for reasons other than the coronavirus.

Most self-employed individuals who were put out of business by the pandemic were able to obtain relief through the CARES Act.

Resources Available to Business Owners

Many businesses and business owners have found themselves struggling with the implementation of government restrictions and social distancing requirements brought on as a result of the COVID-19 pandemic.

This has given rise to a number of resources that are intended to lessen the impact of coronavirus and to help business owners recover from it.

Pandemic Unemployment Assistance

One of the latest programs to be put into effect is called the Pandemic Unemployment Assistance (PUA) program, and it went into effect during the latter part of 2020.

unemployment-benefits-form

Under this program, individuals who were previously not eligible for regular unemployment benefits are able to qualify for PUA are finally able to receive the payments that others have already been awarded.

Recipients will be entitled to as many as 39 weeks of benefits, and they can receive PUA payments retroactively, dating back to January of 2020.

This program is similar to unemployment in that it’s administered by individual states, so claimants are obliged to submit their PUA applications through their state channels.

In addition to the PUA program, business owners received economic impact payments in 2020 which that intended to help taxpayers survive the hardships imposed by the coronavirus.

Single taxpayers received $1,200, couples received $2,400, and couples were paid $500 for each dependent child in their custody.

Families First Coronovirus Response Act

A measure called the Families First Coronavirus Response Act was also enacted to reimburse business owners that employed fewer than 500 employees.

Its intent was to ensure that workers would not have to choose between staying employed and complying with safe behaviors during coronavirus.

It also reimbursed the businesses where these employees worked to relieve some of the pressure off them as well.

The Small Business Association Loan Program

Other guidelines were issued by the federal government with regard to programs already in place. For instance, the Small Business Association (SBA) loan program.

The Economic Injury Disaster Loan was made available to businesses that have suffered serious economic damage as a result of a federally declared disaster.

The SBA also initiated the Paycheck Protection Program (PPP) last year which was intended to help businesses keep their employees working and avoid laying them off.

disaster-loan-assistance-form

By forgiving loans, it sought to help employers keep workers on their payroll since it would relieve the pressure of having to make loan payments, thus freeing up capital that could be used for payroll.

Applying for assistance through the PPP was made simple, and it could be carried out through any SBA 7(a) outlet where applications were normally submitted, as well as any federal credit union.

Another resource available to business owners during the time of the pandemic is the SBA’s Local Assistance Directory, which provides locations of local offices where assistance may be obtained.

The federal government is aware of the stress that the pandemic has placed on the shoulders of small business owners and has reacted as quickly as possible to provide help in many different forms.

It is worth your while to make use of the loans and programs described above and to educate yourself about as many other possibilities as possible. Surviving the pandemic as a business owner will prove to be difficult, but you won’t have to do it all on your own.

Need Help Managing Your Unemployment Claims?

Have you been hit hard by unemployment claims during the COVID-19 pandemic?

Despite the fact that you have probably had justified cause for laying off or firing your employees, you may still be getting hammered by unemployment claims, especially if you are a mid to large-sized business.

Trying to handle all of these unemployment claims and respond to them within the allotted time can put an enormous amount of stress on your HR department.

Unemployment Tracker can help you manage your unemployment claims, relieve some of the burdens off your shoulders, and help you contest any claims that you believe were filed without proper justification.

The COVID-19 pandemic has already proved to be a difficult time, so let us help relieve the burden of unemployment claims off your shoulders.

Take a look at our full range of unemployment management solutions!

no-call-no-show job-abandonment-unemployment-insurance

Know When and How to Protest Unemployment Claims

Unemployment compensation is typically awarded to individuals who have lost their jobs through no fault of their own. It is designed to provide temporary income to those people while they search for a new job. However, as an employer, it is your right to protest unemployment claims. If you believe your former employee is not a candidate for unemployment, this guide will help you contest it.

Key Takeaways

  • If one of your former employees is filing a claim, and you believe they don’t meet the criteria for benefits, it is in your best interest to protest it as soon as possible.
  • If you fail to protest the claim, you will have to pay the employee unemployment compensation. Unemployment claims will also raise your tax rates.
  • Filing a protest does not mean you are off the hook, but it initiates the legal process of contesting the claim.
  • After filing a protest, it is crucial that you gather the proper documentation needed to effectively combat the unemployment claim.
  • Employees who quit of their own volition or were fired due to wilful misconduct are not eligible to receive unemployment benefits.
  • The more unemployment claims you have, the more opportunities for errors there are. This can be especially difficult for larger employers.
  • Unemployment Tracker can help you manage your claims and effectively protest them!

The Initial Process of Protesting an Unemployment Claim

unemployment-insurance-rate-calculation

If you receive a notice that a former employee has filed for unemployment benefits and you think the claimant should be disqualified from receiving benefits, you can file a protest. The deadline for you to file the protest will be present on the notice.

If you file a late or incomplete response, you will forgo your right to protest the claim. You may also be fined, as well. It is crucial that you file the protest correctly and in a timely fashion. The process of the unemployment claim can be broken down into the following steps:

1. Receiving Notification of the Claim

When one of your former employees files an unemployment benefits claim, you will receive a notification. The information will include a questionnaire asking for additional details from the employer.

This will help the state and employment commission determine the eligibility of unemployment income benefits. This questionnaire is sometimes referred to as a separation report.

2. Verifying the Claim Details

You will need to check if the individual was actually employed by your business. However, this does not include temporary staff or independent contractors. You will need to verify all information on the report, such as dates of employment and wages. You will also need to provide the details surrounding the event that resulted in the claim. Make sure that you report all of this information to the unemployment officer.

Deciding to Protest the Unemployment Claim

paperwork

If you determine that the person filing the unemployment claim should not be eligible to receive benefits, then it is in your best interest to file a protest. If you decide not to protest the claim, you will have to pay the employee compensation, and it will also raise your tax rates.

Keep in mind that the unemployment commission will likely rule in the employee’s favor if their work hours were restricted or they were fired through no fault of their own.

An employee does not have a right to unemployment assistance if any of the following circumstances apply.

The Employee Left Their Job Voluntarily

If the employee indicated an intention to quit or did not show up when they were scheduled to work, these aspects need to be documented. In addition, if they gave a formal notice, this disqualifies them from receiving unemployment benefits.

The Employee Engaged in Wilful Misconduct

Wilful misconduct means that the employee failed to meet the normal standards of behavior. This includes being intoxicated, falsifying information, sleeping on the job, or stealing. There are also other examples, such as failure to follow instructions, excessive absences, or an intentional violation of the company’s rules and policies.

What to Do if You Decide to Protest

The most important part of the process is gathering the appropriate documentation. This will be used as evidence to substantiate your case. This documentation should include the following.

  • Proof of attendance.
  • A letter from the employee if they requested a reduction in work hours.
  • A resignation letter from the employee.
  • Documents relating to any disciplinary actions that resulted in a termination.
  • Additional documentation with regards to the event leading to termination.

Upon gathering all the relevant documentation, copies should be sent to the unemployment officer that is conducting the investigation. It is vital to respond on time to the state agency’s requests for information and provide this separation documentation.

What Happens Next?

Once the proper documentation has been submitted to the unemployment commission, it is up to them to make a decision. This is known as the determination, and it could take a while for the commission to respond back with their determination.

If the commission rules in your favor, then the unemployment claim is rendered invalid, and you will not have to suffer the consequences. However, if the determination has sided in favor of the claimant, you will be given instructions on how to appeal this.

The information will explain clearly how and why they came to this determination, and it is up to you to decide if it is relevant enough to appeal the process once again. The number of times you can appeal varies from state to state.

If you decide to appeal the determination, a hearing may need to be held where the case will be reviewed again. Upon the conclusion of this hearing, the commission will make a determination once again.

Manage Your Unemployment Claims with Help from Unemployment Tracker

As you can see, dealing with all of the steps to protest and keep track of unemployment claim can be a headache for any organization. It can be frustrating and time-consuming to gather the information needed to protest an unemployment claim. It is always in your best interest to appeal any unwarranted claims, as you may have to pay a higher tax rate.

If you are looking for a solution that can help you manage your unemployment insurance claims and make sure you meet deadlines, Unemployment Tracker can help you.

From our easy to use software solution for internal teams to Unemployment Tracker Complete that provides you with a dedicated team of experts who will take the whole process off your plate, we are here to help. If you are overwhelmed by unemployment claims and aren’t sure where to turn, reach out to us today or click below to take our free assessment.

Take the Unemployment Tracker Free Assessment

Top Programs to Help Businesses During COVID-19

As we continue to weather the COVID-19 pandemic, the disruptions to our businesses and economy keep expanding. Even with states beginning to reopen, capacities are limited, so while it’s a good step, it still isn’t business as usual. As a result, the risk of economic hardship for small businesses continues to increase. Read more

How to Best Manage a Fully Remote Team

Working remotely used to be a topic to discuss to give your team greater work-life balance, with more companies moving in that direction, but it still wasn’t widely adopted. That is, it wasn’t until COVID-19 changed everything and forced all companies that could move to working from home. As a result, many employers found themselves in unfamiliar territory and trying to manage a team from a distance. If you’re in the same position, here are tips on how to best manage a fully remote team. Read more

Two Methods to Calculate FUTA Tax Liability

In your business, you have a lot of responsibility, like casting the vision for your future and managing payroll. You have to lead your team and deal with the nitty-gritty details most people don’t actively think about. One of these areas is the taxes you have to pay, including social security, medicate federal income, and of course, FUTA. Read more