Our Unemployment System Today
As a business owner, you probably already realize the cost of unemployment benefits ultimately lies with you. Costs are determined by a company’s experience rating, which is determined by the amount of benefits the state pays your former employees. A few interesting unemployment statistics were announced recently that all business owners should be concerned about. They include:
> Spending on unemployment compensation rose from $31 billion in 2008 to approximately $160 billion in 2010.
> On average, state unemployment taxes increased by 34% as a percent of total wages from 2009 to 2010, and are expected to continue to increase.
These increases in unemployment costs will eventually increase state and federal UI taxes, as the interest on the federal loans to states become due later this year. The impact to business owners will be an increase in hiring and administrative costs. To keep your unemployment costs under control business owners should:
Review and verify tax rate notices & employee classifications
Ensure reported wages are correct
Complete UI claims forms correctly and on time
Be sure incorrect determinations are appealed
Notify the UI agency of rehires and offers of employment that are refused
Review hiring procedures & performance appraisals
Train Supervisors and Managers to ensure proper documentation of employment actions, such as disciplinary and termination procedures.
Thanks for Reading and I hope this info helps you!
SRS Insurance group