Keeping costs low is always a goal at your small business. Since you don’t want to cut corners or enter any illegal practices, you’re looking for cost-cutting solutions that are all above board. Knowing that billions are overpaid in unemployment insurance claims every year, it might be time to consider UI.
A common misconception is you don’t have any control over how much is paid out into the unemployment fund, but you do! The rate you pay is determined by several factors that come from you, such as, turnover and how many claims you’ve paid over a past year. Here are three specific ways you can help your small business lower its unemployment costs.
1. Document Everything
Good documentation processes can help you when an unemployment insurance claim comes in. Because you’re only required to pay employees who were let go at no fault of their own, you need to have this clearly documented in your records.
If you aren’t recording an employee’s warnings or issues on the job that led to dismissal, or even the reason they quit, they can file for UI and you don’t have any evidence to the contrary. A good system can save you money.
2. Read Everything
There’s a lot of paperwork and information associated with UI claims, but it’s crucial to read everything you receive. If you dismiss it or place it into a pile to deal with later, you might miss key dates, specifically related to contesting a claim.
If you aren’t reading all the communication, an employee who isn’t eligible may file and be granted UI simply because you didn’t respond in time with your answer to their claim. Make sure you’re paying attention to pay less both now and later.
3. Outsource Everything (Or Some Things…)
The two steps above are helpful, but UI is still a complicated world with tax laws evolving constantly. A great way to cut costs and make sure you aren’t missing anything is to outsource some or all the work.
Unemployment Tracker is one such company with the ability to help you wherever you’re at. Our full range of solutions are designed to work for you, whether you just need a consultant or software that does it all. Request a live demo today to see exactly how Unemployment Tracker can help your business save money.