The Unemployment Insurance System’s Lofty Intentions, Turned Troubles

When the Social Security Act of 1935 was enacted, a variety of provisions were put in place to keep the economy stable in times of hardship. One of those provisions was Unemployment Insurance (UI), of which one of the intentions was to reward employers with lower unemployment tax rates by minimizing workforce turnover. However, since that time, the UI system has grown to be more of a detriment to employers and the economy, becoming ever more complex and costly. It seems that since 1935, the lofty intentions for the Unemployment Insurance System have turned into troubles that are weighing down today’s economy and the everyday business owner. Among the most glaring troubles with the UI system is its lack of payment accuracy. It has been reported by the United States Department of Labor, using the Benefit Accuracy Measurement (BAM), that in one financial quarter, an estimated $3.9 billion is improperly distributed to UI recipients. This number can indicate claims that were either overpaid, underpaid, or improperly denied. According to the data presented for 2016’s fourth quarter, an estimated $2.1 billion was overpaid, out of a total of $33.2 billion in payments. Regardless of the UI system’s intention, that is a lot of money overpaid, and an even greater amount paid in general. Fortunately, there are methods that employers may undertake to counteract these inaccuracies, such as the software offered by Us4U. They offer solutions that help you manage, track, and most importantly audit your UI claims and charges in addition to maintaining the lowest tax rate possible. However, to some extent the level of impact does depend on geography....

How Your Unemployment Tax Rates Are Computed

As business owners, taxes may seem like an inevitable fact of life. Much like how you have to buy gas to keep your car in motion, you have to pay your taxes to keep your business compliant with state and federal laws. Sometimes, you even have to spring for that premium level cost if your business has a hefty amount of unemployment claims. The good news is that your unemployment taxes are the only taxes that you can control. On that note, by controlling that cost you can help your company spend its resources on more pressing costs that will help it continue to grow. What to Know About Your Unemployment Tax Rates What are Unemployment Taxes? You have unemployment taxes because of the Federal Unemployment Tax Act, a federal law that imposes an employer tax to help fund state workforce agencies. You, as a business, report this tax annually by filing a Form 940 with the IRS. What is My Unemployment Tax Rate? Your tax rate can vary by state to state or by how many unemployment claims have been made against your company. Generally speaking, every state assigns a standard rate for employers newly in business.  The New Employer Rate may be assigned for 1-3 years.  After that, the rate for the following years are based on your own history of benefit charges and taxable payroll. What are the 3 Components of My Unemployment Tax Rate as an Experience Rated Employer? Most states look at the following three components in determining your tax rate: Benefit charges paid Taxable Payroll Contributions (taxes) paid What Can Affect My Unemployment...

5 Ways to Enrich Company Culture & Create Happy Employees

Creating an engaging and positive work environment is one of the biggest challenges a business owner can face today. In fact, Gallup’s 2012 State of the American Workplace found that around 70 percent of Americans are not emotionally invested in their current job. While there are a multitude of reasons for this lack of engagement, the most common cause is simply company culture. What is company culture? This buzz-worthy phrase simply refers to the overall mission, values, and personality of your workplace, and how those shape an employee’s day to day experience at your company Creating a Work ‘Culture’ For A New Generation As more and more millennials begin to make up the work force, it is clear that crafting a trusting, informed, fun, creative company culture creates happy employees. Happy employees work harder than their dissatisfied colleagues and create a strong foundation for your organization to grow. Here are 5 ways you can improve your company’s culture today. 1. Encourage Strengths and Interests If an employee sees a need within your company and is driven to fill it, don’t let rigid titles and hierarchies stand in their way. Encourage flexibility and lateral moves to allow your employee to reach their full potential. 2. Be transparent Transparency refers to being honest and upfront with employees and customers. Open communication about your company’s finances creates a concrete link back to employee performance, and will either encourage employees to continue the good work or motivate them to do better. 3. Offer Perks While finances might limit how much your organization will offer, they shouldn’t dictate what you can offer. You don’t...

How To Take Control of Your Business’ Unemployment Costs

Whether your business is large or small, dealing with your unemployment costs can be an expensive hassle. Handling and processing unemployment claims is complicated and time consuming, so much so that the Department of Labor and the State agencies overall Unemployment Insurance improper payment error rate is currently at 11.4% or $10.3B! If you look at those numbers, it’s clear to see that your business may be losing two of its most valuable resources: Time and Money. The Benefits of Using Us4U Software What if we told you that our software will completely streamline the way your organization handles your unemployment claims? Now you don’t need to be an unemployment claims expert. Everything you need to keep track of this important part of your business is now easily accessed at your personal computer. Our range of software solutions gives you, the busy business owner, the freedom required to self-administer all claim activity and maintain complete control of your UI cost.  All of our solutions will help you do the following: Lower your UI tax rate Increase the accuracy of claim and charge detail Charge audits, process claims and store all claim related documents in a single application, which will help your business stay organized. Significantly cuts down the time you would need to audit charges and process claims. Don’t believe us? Check out these statistics. Our clients have enjoyed: ● 50% reduction in workforce labor and costs ● Over $1 Million claims processed ● Over $18 Million credits back to Client ● 42% favorable decision of the 70% of claims protested What are you waiting for? Join Us4U as...