Sometimes it can feel like the costs associated with your business are out of your control. You know there are some areas where you can make a difference, but certain expenses are what they are. Too many business owners lump unemployment costs into the uncontrollable realm without understanding what can be done.
Fortunately, there is something you can do when it comes to how much you pay for unemployment insurance. Before you can see how much you could save, you need to see how much you’re spending and potentially overpaying. Start with these three steps to determine your costs:
- Locate your UI Tax Rate and Taxable Wages for 2018 and multiply the Taxable Wages by the tax rate. This will show you how much you paid last year.
- Take the total amount of UI taxes you paid in 2018 and then multiply that amount by 12 percent. This ballpark estimate is based on the national average for UI overpayment.
- Finally, find your net UI charges for 2018 located on your quarterly UI charge statement or annual UI tax rate notice. Once you have it, multiply it by 12 percent. The result is the estimation of UI charges you’ve overpaid to a claimant in error.
Your findings probably revealed a startling truth – your UI claims are costing your business more than you think. In fact, more than $3 billion unemployment benefits are overpaid every year. The good news is an unemployment insurance software can 100 percent help you lower your costs.
UI management software is designed to identify claims that shouldn’t be paid, effectively protest them, catch costly errors, and identify credits you’ve earned. By using UI software, you can:
- Increase credits to your State UI Account by up to 35%
- Significantly reduce missed deadlines and errors
- Reduce the labor need to manage your UI program by up to 50%
On top of the results, UI management software is powerful, easy to understand, customizable, efficient, and will save you time and money. Don’t be controlled by your UI costs anymore – contact Unemployment Tracker today for a free demo.