14 Billion dollars in overpayments last year. A 13 percent error rate on average nationwide. A 50 percent win rate on employer protests. Hundreds of billions spent managing this process by employers each year. What do these numbers mean to the typical employer? You are paying too much in unemployment, winning too seldom when you protest, and spending a great deal of payroll dollars to manage the process.
The economy might be on the mend, but that doesn’t mean unemployment costs are falling. In fact, the opposite is true: In the past decade, those costs have increased about 80%. However, that doesn’t mean you need to let those costs devastate your bottom line. For example, did you know that when it comes to your state unemployment insurance tax rates, what you pay will vary based in part on your experience, i.e., how you’ve managed your UI claims and costs? The question then becomes this: How well are you managing your claims? Today’s post will cover six tips for how to increase your unemployment insurance credits. Read more
July 2016 Unemployment data is coming in and the Unemployment Rate (Seasonal) remained at 4.9% for the second month in a row.
Although jobless claims have been low for 72 weeks, that does not mean employers should not continue to be vigilant in managing this significant cost. Managing Unemployment Insurance during the good times helps to set a solid precedent that will help you to be more effective during the downturns. The time to put effective cost management practices into place is during the economic “good times” in order to be better prepared for the “down times”.
Contact UI Steward for more information on how to manage this cost more effectively.
Unemployment costs are the only payroll tax that an employer can actually control – it also happens to be one of the largest employer expenses each year. For this reason (and others we describe in some of our other blogs), it is critical to the bottom line for employers to control or even reduce this tax. To understand what you can do to reduce your UI costs, you first need to understand how it is calculated. Although each state may calculate the actual tax rate for employers differently, the UI system is based on a single concept — Experience Rating.
Managing Unemployment Insurance (UI) claims in house is no easy task. It’s time-consuming, complicated and expensive, but failing to manage your claims can be very costly for your business. Did you know, per the US Department of Labor, the current average State Unemployment Insurance Agency improper payment rate is 11.4%? That results in nearly 14 billion dollars in improper overpayments to claimants annually. So while it might be a long process at first to get your UI claims managed in house, it does get easier with time, and it is worth it. Managing your own claims ensures you have the right information and plays a big part in your business’ financial well being. This post will go through how to manage unemployment insurance in house.
The national average UI overpayment rate is almost 13 percent (actual overpayment rates by state range from about 5 percent up to 31 percent). The average employer only wins about 50 percent of the protests that they file which further contributes to inflating the charges to their account and leading to increased UI costs.