Proven Results
Learn about NSN's proven results
Significant tax savings after NSN analyzed company reorganization
Consider the case of a large national manufacturing company that split into six new companies. The state assumed a successor relationship and assigned the maximum rate to one of the six new entities for their unemployment taxes.
NSN's analysis revealed that there was no true predecessor or successor relationship as defined by the state. Therefore the state's assigned rate for that company was not valid. NSN protested the new rate assigned to that company.
As a result of NSN's efforts, the state realized that the company was actually a new employer, and that the new employer rate was the correct basis for establishing the unemployment tax rate. The client saved $508,340 on its unemployment taxes in the first year, and it saved $823,699 over three years.
Contact NSN to find out how we can help you.
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NSN finds dramatic savings on unemployment claims
A well-known manufacturer with a national brand recently switched to NSN after working with another unemployment service. This employer closes its plants two times each year for maintenance, and the employees are required to take their available vacation during these shutdown periods.
The first shutdown is in the summer, and traditionally only a few unemployment claims are filed. The second shutdown is in December. At this time most employees would routinely file for unemployment and each winter the employer paid out benefits for many unwarranted claims.
This employer has a stable workforce with many long-term employees who have vacation available to use during the winter shutdown. These employees should not be eligible for benefits. NSN recognized the 'double dipping,' and began protesting those claims which were not warranted during the winter shutdown. With NSN's proactive involvement this employer's tax rate was reduced by more than 2.5 percent resulting in tax savings of almost $500,000.
In subsequent years the number of unwarranted claims decreased significantly. Employees who are eligible for unemployment still do collect benefits at both shut-downs.
Are you getting this kind of thoughtful and thorough service?
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If an employee quits, can they still collect unemployment benefits?
Has your unemployment experience been affected by claims such as these?
- Bob returns from leave but only part-time work is available so he quit and filed for unemployment.
- On two occasions the supervisor counseled Susan about her work performance and offered to help her. After declining the offers of help, Susan quit and filed for unemployment benefits.
- After six months on medical leave Betty's doctor released her to work. She did not notify the employer of the release. Then the employer went through a layoff, so Betty filed for unemployment claiming lack of work.
- While on vacation Marla's husband had a heart attack. She notified her supervisor she would not return, and did not contact the employer after that. The employer assumed she quit, sent her a letter confirming her resignation. Marla said she never got a letter.
- Frank applied for a job that required heavy lifting. The employer's pre-employment medical exam indicated that he had a back condition. Frank wanted to work so he asked for a second opinion; the second doctor recommended exercises and said to try the job, but if the pain did not subside he should find another job. The pain increased so Frank quit.
Ask NSN how we help our clients prepare for these and other separations.
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What happens when you discharge an employee?
Discharges can be challenging and stressful. Our clients often consult with NSN's staff before discharging an employee to avoid paying unwarranted claims.
What is the difference between poor job performance and misconduct?
Good question!
Many supervisors do not know the difference; and the difference can be very costly for an employer. In one case the claimant will be eligible for unemployment benefits, and the employer will be charged. In the other case the claimant is disqualified, and the employer is not charged.
Do any of these cases seem familiar?
- A laundry worker became angry and kicked over a laundry cart.
- A medi-car driver with four accidents that involved backing up.
- A maintenance worker with seven years on the job; the last year or so his job performance deteriorated.
- A production worker left work early having arranged for another person to cover her shift.
- Supervisor warns employee about excessive tardiness; employee becomes rude and hostile.
- Employee asked permission to take a day off for a job interview. Supervisor said no because the employee was on a project deadline. He took the day off anyway.
NSN's staff is knowledgeable and helpful in preparing for discharge situations. Our goal is to help employers avoid paying unwarranted claims. Contact us.
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