Walnut Creek, CA (PRWEB) February 12, 2011
Initiated by the Roosevelt administration during the depression, unemployment benefits were intended to maintain “high velocity” dollars in the hands of the unemployed who found themselves out of work due to layoffs (no fault of their own) and unable to find an alternate means of economic substance. For those falling into this category, unemployment benefits were and still are provided through a payroll tax funded 100% by the employer. The state tax uses a merit rating system based on a combination of the employer’s individual unemployment claim experience, along with a state established taxable wage base and claim adjudication program. Employer taxes paid go to a State account and remain there until a claim is filed and found to be payable. Payments are then made from the employer’s account to the former employee. Ergo, the more payable claims filed against the employer, the higher the tax rate because their account becomes depleted, whereas the fewer claims filed, or successfully defended by the employer, the lower the tax.
Now 75 years after the initiation of this program, many employers are jaundiced relative to the equity of decisions rendered regarding whether an employee is indeed out of work through “no fault of their own”. What is perceived by an employer to be misconduct worthy of termination is many times seen by State agencies or explained by claimants as simply having worked to the best of their ability, or having participated in an isolated incident but without malicious intent or disregard of the employer’s best interests. These attitudes, combined with an economy that has simply eliminated millions of jobs in the past three years, has left many employers frustrated with the system along with the increasing tax rates levied on their payrolls.
Is there a solution to this frustration? Yes, the most important of which is to recognize that while this tax is mandatory as a part of being in business, it is also controllable to the extent that employers must pursue those claims that, by statute, aren’t payable. Not responding to claims because you’re angry with “the system” simply allows the State to pay out more claims and drain more money from your tax reserves. Secondarily, there are companies with many years of experience in controlling and pursuing claim costs to ensure employers are not unjustly saddled with improper benefit payments. Unemployment Solutions For You “US4U” is a Leader in Unemployment industry that enables the employer to be on a level playing field by providing unemployment software designed to audit and process claims from cradle to grave. Employers may scan claims received and have the entire claim data loaded to the application systematically. Proper protest verbiage is available in preformatted text – claims may be recorded, protested, appealed and finalized by the user. Benefit charges may be synced against existing claim records to verify and authenticate correct extraction of tax dollars for claim benefit payment. The Department of Labor admits to a 10% error factor in charging benefits to employer accounts, so an audit feature of this function is critical to maintaining a proper tax rate. US4U’s innovative unemployment software program run entirely by the employer allows for timely, accurate, professional handling of claims and charges to provide the assurance that everything needing to be done has been done. Please visit US4U’s website at http://www.us4u.us for a free demonstration of cost effective unemployment products.