"NSN really went the extra mile to help us prepare for a hearing about an employee we had to discharge. We had two witnesses, but they were reluctant to participate in a hearing. NSN spent a lot of time meeting with the two employees to help them understand the process and to become comfortable in telling their story. We know that the judge ruled in our favor due to NSN's extra effort in advance of the hearing."
-Foreman & HR Manager manufacturing client
States differ in how they determine who is chargeable for an unemployment claim. Some states charge the most recent employer for all benefits, while other states charge employers in proportion to the wages they paid during a base period. States may also charge the most recent employer first, and then any prior employers pay a share of the claim in inverse order. In some states employers can offset unemployment benefit charges through voluntary contributions to the unemployment fund. When voluntary contributions are available, NSN helps to determine whether these voluntary contributions are a cost-effective way to minimize unemployment liability.
Back to topThe weekly benefit amount is based on past earnings. The benefit amount is based on the claimant's usual wage and is generally about 50 percent of wages. Every state has a maximum weekly benefit amount. A claimant who earned higher wages will usually receive benefits that are less than 50 percent wage replacement.
Back to topIt is possible to collect unemployment benefits while working and earning at a certain level. Most states pay unemployment benefits when a claimant is partially employed.
Back to topWhen an employee quits and then files a claim for unemployment, then the former employee has the burden of proof to demonstrate that they quit for a valid reason, with good cause attributable to the employer.
Back to topAn employee is eligible to collect benefits for any week they did not work and did not receive wages.
Back to topA temporary employee can be eligible to collect unemployment when an assignment ends. This can happen even when it is understood at the time of hire that the position is temporary.
Back to topUnemployment tax rates are generally based on payroll and experience. States vary on how long an employer's experience will affect unemployment tax rates.
Back to topThe rate often depends on the industry, economy, location and a number of other factors. The important thing is to work to bring the rate down. When an employer's rate is reduced from 9 to 7 percent, or from 3 to 1 percent, the employer saves the same amount of money. NSN's strategy is to find practical ways to improve the process and to maximize the saving opportunities.
Back to topThe most important thing an employer can do is to send the right person to the hearing.
Most unemployment cases are based on a triggering incident -- the event which led to the separation. Who was there? Who actually saw what happened? Who heard what was said? That person should be your witness. The right person to represent the employer at a hearing is the person who can say ‘I heard what she said’ or ‘I saw what he did.’ Simply providing a first-hand witness will improve the outcomes of your hearings and appeals.
To further strengthen the employer’s case, NSN representatives prepare witnesses before each hearing to help them effectively present their testimony in support of the employer’s case.
Back to topSUTA Dumping is commonly practiced by some employers to circumvent paying unemployment insurance. To avoid higher tax rates, some companies get multiple account numbers with the state, and shuffle employees around to the account number with the lowest unemployment insurance rate. Another common practice is to buy a business with a lower unemployment insurance rate and shuffle employees to that other business as a way to lower the tax rate.
President Bush signed the SUTA Dumping Prevention Act on August 9, 2004, to curb this practice.
Dec 2002
"SUTA Dumping" is a new term for an old activity that some employers have used to avoid high UI tax rates. Two types of SUTA Dumping transactions are discussed below:
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