Staffing companies are no strangers to high turnover rates and the constant influx of unemployment claims. These claims can arise due to various reasons, including temporary employees filing for benefits between assignments, new assignment job refusals, and lengthy gaps between assignments. The cost of mismanaging these claims can be substantial, potentially leading to improper payments that could otherwise be avoided.

Understanding how unemployment insurance works is crucial for staffing companies. Employers pay unemployment insurance taxes to the state, with the Federal Unemployment Tax Act (FUTA) levying an additional  0.6% tax on the first $7,000 earned by each employee. States have their own rules and nuances regarding benefit amounts, eligibility criteria, and claims processing.

Many staffing companies opt to manage unemployment claims in-house, but this approach can be cumbersome, expensive, and riddled with challenges. Dealing with the substantial volume of claims can overwhelm administrative resources. Tasks such as tracking protests, responding to information requests, calculating wage audits, and managing charge and credit tracking are just a few examples of the responsibilities involved. All the while, it's imperative to provide timely and accurate responses to state agencies to maintain compliance with the Integrity Act. 

Furthermore, the intricacies of state-specific unemployment laws add an extra layer of complexity to the process. Some third-party administrators, like Unemployment Tracker, have formed partnerships with staffing firms, such as Avionte and Coats, equipping them with the necessary software tools to internally handle these claims efficiently. 

Outsourcing unemployment claims management to experts like Unemployment Tracker offers several advantages:



• Expertise: Unemployment Tracker specializes in unemployment claims management and has a deep understanding of the staffing industry, including state-specific rules and regulations.
• Improved Compliance: Partnering with experts ensures compliance with state laws and the Unemployment Insurance Integrity Act, minimizing the risk of costly errors and missed deadlines.
• Automation: Solutions like Unemployment Tracker's software seamlessly integrate with staffing software, streamlining data exchange and reporting.

Managing unemployment claims is a costly and intricate challenge that confronts all staffing agencies. High turnover rates and a continuous influx of claims create a burdensome and expensive internal management process. However, by forming strategic partnerships with experts like Unemployment Tracker, staffing companies can focus on delivering high-quality staffing solutions while preserving their financial stability, achieving compliance, and avoiding improper payments in an ever-evolving industry.