“Why Staffing Agencies Need to Put Practices into Place to Control Unemployment Insurance Costs”

A major economic driver in America is creating jobs and labor, making employment and staffing an industry of its own. Placing millions of people in jobs each year comes with extra tasks involving payroll, taxes, employee relations, safety regulations, and unemployment insurance.

However, in this day and age, U.S. corporations and business experience a higher turnover rate in their workforce pool which in turn leads to a higher number of UI claims than ever before. In managing a business with a decent number of employees, it’s imperative to be aware of all of these issues and put together a plan in how to effectively manage UI costs.

As a staffing agency, here are some practices to control unemployment insurance costs that may come into handy when a current or former employee of one of your clients makes a claim:

  • File a weekly claims report to help monitor your appellants and get them back to work ASAP to help lower your overall UI rate.
  • Document everything, especially if they refuse to do an assignment that’s in their job description or contract. If you are hiring anyone for “bona fide” work, check with your state UI laws on the regulations or details. Your local UI agency or an unemployment consultant can provide resources to help you understand the law.
  • Compare your weekly charge statements to payroll records- since the staffing industry has one of the highest rates than any other in claimants lobbying for UI benefits (and underreporting their earnings), it’s good to be able to have a sheet handy that breaks out your costs of doing business against payroll.

The key to staying ahead of your competition in the staffing industry is to have a solid understanding of the client’s UI costs, lots of documentation, and know the laws. Then you can make sure that your client has the best rates and the information they need when dealing with a claim. Not only will you have the competitive advantage as a staffing agency, but your client will be the leader in their market as well. For more information and more about how to control unemployment insurance costs, visit www.unemploymenttracker.com.