Every year employers across the country pay billions of dollars in unemployment insurance (UI) taxes.  Many of those employers simply pay their taxes without ever considering that these costs are manageable and can be reduced through better claims management and HR practices.  In almost every case, with a few changes to the way an employer manages their unemployment claims and protests, and with a few changes to their human resources processes, an employer can save tens or even hundreds of thousands of dollars each year in UI taxes.  The following are just a few tips to help employers get started:

• Take the time to get to know how unemployment works in your state – this is critical to ensure that you are responding to claims in time and that you understand what kind of charges are being assessed to your state UI account.  If you don’t understand or need assistance, contact an expert in unemployment insurance for help.  There are also training classes available by private companies specializing in UI Claims Management or often they are offered by your state UI agency.
• Ensure that your employer policies and documentation are going to help you protest claims and win those protests.  There are many experts and consultants who can assist you with getting your “house in order” in this area.
• Document!  Document!  Document!  When dealing with employee disciplinary issues, be sure to document the incidents properly – this is your evidence when protesting an unemployment claim.  Without proper documentation, you are unlikely to win a protest and your unemployment tax rate will suffer.
• Audit your UI charge report for employees collecting unemployment while employed full time or while receiving vacation pay or holiday pay.
• Be a “bulldog” with your unemployment claims and agency correspondence.  Often it will take an employer multiple protests of the same issue to finally get an actual determination in their favor.  It may also require that an employer continue to protest an issue all the way through the unemployment system (up to the hearing level and beyond) to get a favorable decision – don’t be dissuaded – keep on fighting until the decision goes the right way.

These are just a few of the ways in which employers can begin to manage (and lower) their UI costs.  Contact us for more information about managing the costs of unemployment and where to get training.