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.
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.
Unemployment costs are rising rapidly. In fact, in the last decade alone, they’ve risen more than 80 percent! While these claims can be irritating, the fact is at one point or another your business will have to address them. How you manage them, however, is up to you.
Many businesses think that UI costs are just another business expense; they suck it up, pay the bill, and get back to work. These companies probably don’t realize that they have the ability to manage and reduce overpayments, and by allowing these errors to go unchecked they are devastating the bottom line. Read more
Employers win only half of all protested claims for unemployment insurance (UI). That low success rate keeps many from even trying. However, most of those protested claims fail because employers are unprepared to make a strong case.
There are a number of reasons why an employer might fail in protesting a UI claim, including inadequate policies and processes, missed deadlines, and ignorance of state UI laws and processes. However, the main reason that most employers lose a UI claim protest involves poor, or missing, employee documentation. In this post we’ll provide tips on how you can organize your employee documentation and develop effective UI cost management systems. At Unemployment Tracker, we know that just a little bit of planning and investment can save lots of money and grief in the long run. Read more
While many are putting the finishing touches on filing personal and corporate taxes, unemployment insurance managers have been working on their UI tax rates all year long. Read more
Take a look around. Is your desk swamped with sticky notes or plagued with paperwork? Maybe the start of a new season is the nudge you need to spring clean your space. Read more
Overpaid unemployment benefits top $14 billion. Take a minute to let that sink in. Odds are, your business is a part of this statistic. That’s the bad news. The good news is you don’t have to be. Read more
Firing an employee, delivering a not-so-great annual review, policing employee conflict – there are many uncomfortable tasks that fall on the shoulders of an HR Manager. But when asked what part Read more
One of the biggest headaches for employers is their unemployment insurance tax rate. As tax rates continue to climb, employers are left with more questions than answers. When you’re short on time Read more
Managing unemployment insurance claims is no easy feat. It’s time-consuming and complicated. You wear a lot of hats and with so many responsibilities, the last thing you have time for is navigating the complex world of unemployment insurance.