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Partner with the State Unemployment Insurance (UI) Agency to Reduce Improper Benefit Payments and Taxes
Why do improper UI benefit payments matter to you? Because you, the employer, pay for these benefits through higher taxes. In 2010, American employers faced an estimated $6.86 billion nationwide 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 that has a financial impact on employers.
Improper payment of benefits is often the result of inaccurate or insufficient information available 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 the State UI Program to improve payment accuracy by following these required steps:
- Report all new and rehired employees to the State Directory of New Hires by the due date, as required by state and federal law. Timely reporting helps prevent payment of ineligible UI claims after an individual has returned to work.
- Respond promptly to any Request for Verification of Weekly Earnings from UI State Agency. Verification of employee weekly earnings ensures that 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.
- Provide complete and accurate Employee Separation Information. Employers are required to provide employee separation information to the state UI program by the 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 program for additional information.