Unemployment Claims Processing
In this unprecedented time of the Coronavirus employers are being hit from all sides. They are dealing with local, State, and Federal ordinances, stay-at-home orders, and guidelines that have radically impacted their workforces and the way they do business. The United States Bureau of Labor Statistics (BLS) is reporting the highest unemployment rate since the great depression. We are seeing all time highs in first time claims being made by unemployed individuals. Unemployment claims processing has become more important than ever purely by the volume at which it is necessary. Not to mention that if employers participate in the process correctly they will see a positive financial impact on their business. In this uncertain environment there is no employer that can afford to miss out on any financial opportunity. Because of this, SyncStream Solutions is partnering with Unemployement Solutions for You, LLC to bring our customers the industry leading technology and service in the unemployment claims processing space.
Why is managing unemployment claims as an employer so important?
Employers who actively pursue an aggressive claims management program and reduce the charges that are assessed to their account can save a significant amount of money. Preventing unemployment claims being charged to your account directly affects your organization’s unemployment tax rate. This lower tax could mean significant savings in tax dollars.
Lower Tax Rate
Increase Bottom Line
Claims are based on wages that you and other employers have paid to your former employees during the past 18 months and caused the separation. Responding allows the State agency to adjudicate whether the claim should be paid, as liability is based on reason for separation. The state agency is simply attempting to determine who is at fault...no fault, no liability hence no payment.
Preventing and managing claim payments keeps more money in your UI account and helps lower your UI tax rate or keeps it from increasing. Bottom Line: It can significantly save you money!
Us4U was founded by seasoned executives in 2008 that has over twenty-five (25) years of unemployment claims administration and unemployment tax consulting experience. The founders started the company with a basic idea to provide employers with the best solution to manage their unemployment claims. Originally the focus was in the Staffing industry, due to their high turnover rates, they experience a high volume of unemployment insurance claims. Us4U developed a solution to provide them with a streamlined and paperless environment to manage their Unemployment Claims. Currently Us4U has clients in different sectors such Staffing, School Board Associations, County Associations, Entertainment, Professional Employer Organizations (PEO), and Accounting Firms.
What makes Us4U stand apart from the competition is their unparalleled customer service and the fact that their executives truly care. They are proud to have a personal connection with every valued client and always do everything they can to meet them on their level. Their connection and vested interest in their business keeps us committed to providing clients with outstanding customer service alongside with their proven claim’s management record . Due to these high standards, commitment and vision, over time they began to build a niche in the market and now their software applications are also being used by other companies who wish to manage unemployment claims in-house.
Background of Unemployment Claims Processing
Federal law requires states to allow nonprofit organizations the option of financing unemployment insurance benefit costs either by paying contributions or by reimbursing the state fund only for claims paid out to former employees. Many nonprofits don’t realize they may be eligible for the reimbursement method and continue to pay into the state’s unemployment tax system unnecessarily. Tax financing employers pay a quarterly unemployment tax on the wages paid to their employees. Reimbursement financing employers do not pay a quarterly tax, although they must still file the quarterly tax and wage reports. Instead, they reimburse the department for 100% of the unemployment benefits charged to their account. Either option you choose, you may be paying more than needed to the state and these funds could be used elsewhere i.e., fundraising, supplies or even hiring more employees.
Tax financing employers pay a quarterly unemployment tax on the wages paid to their employees. Reimbursement financing employers do not pay a quarterly tax, although they must still file the quarterly tax and wage reports. Instead, they reimburse the department for 100% of the unemployment benefits charged to their account. Either option you choose, you may be paying more than needed to the state and these funds could be used elsewhere i.e., fundraising, supplies or even hiring more employees.
There have been a lot of federal UI programs available in the past, what are those programs?
- Emergency Unemployment Benefits (EUC)
- Disaster Unemployment Benefits (DUA)
- Federal Extended Benefits (EB)
My tax rate changes annually and I'm not sure why?
That is because every claim for which you have been proven at fault and liable, requires you to repay the state for the benefits paid to former employees.
Respond and monitor all your UI claims and review your benefit charge statements to be sure only qualified employees are receiving benefits.
Auditing your claim activity and benefit charges ensures that your tax rate is accurate. Nationally, there is a 10% error factor found in benefit charge statements.
I have an employee who voluntarily left work. Would I have to pay unemployment benefits?
Most states have "good cause" provisions that would allow for the employee to collect benefits. Some examples include; moving for a military spouse, severe illness, or personal danger.
My company has received a wage audit letter. Why?
Wage audits are done to help prevent unemployment fraud. If the company receives a notice asking for wage verification, it is likely the claimant has received both wages and benefits in the same quarter and the agency wants to verify that there is no concurrent receipt of both.