Partner with the Employment Department to Reduce Improper Benefit Payments and Taxes
Why do improper Unemployment Insurance (UI) benefit payments matter to you? You pay for these benefits through higher employer taxes. In 2010, American employers faced an estimated $6.86 billion in additional UI costs due to improper payments of UI benefits.
UI is a safety net program that helps cushion the impact of economic downturns for communities, states and the nation by providing temporary income support for qualified unemployed workers. However, improper payment of benefits is a serious problem which has a financial impact on employers.
Improper payment of benefits is often the result of inaccurate or insufficient information necessary to determine a claimant‘s eligibility for benefits claimed. Employers can help reduce improper payment and potentially higher taxes, by providing information needed to make an accurate determination of claimant eligibility.
Be an active partner with UI to improve payment accuracy by following these three steps:
1. Report all new and rehired employees to the State Directory of New Hires by the due date, as required by federal law. Timely reporting helps prevent payment of ineligible UI claims after an individual has returned to work.
2. Respond promptly to any earnings verification requests from the Employment Department. Verification of employee weekly earnings ensures the correct amount of UI benefits is paid for weeks of partial unemployment. Failure to respond to a request for verification of earnings can result in an improper payment of UI benefits.
3. Provide complete and accurate employee separation information. Employers are asked to provide employee separation information to the state unemployment insurance program (the Employment Department) by a specified due date. This information is used, in part, to determine the claimant‘s eligibility for UI benefits.
Remember: Employers that do not comply with state and federal UI requirements for providing employee information risk higher costs through increased taxes, fines or other penalties.
Questions? Contact the UI center at 877-File4UI (877-345-3484) for additional information.