Unemployment insurance helps workers who’ve been terminated bytiding them over financially for a limited time while they searchfor another job. For employers, unemployment insurance is primarilya paperwork headache. Tax rates for employers with good records ofavoiding layoffs vary by state but are as low as a fraction of apercent of total payroll. For employers who have large numbers offormer workers filing claims for unemployment insurance, however,unemployment taxes can be a significant financial burden. Here arethree ways to minimize unemployment claim impact:
1. Understand the laws in your state. The agency thatcollects the tax can provide you with details of the regulations.Know what kinds of layoffs or terminations can trigger unemploymentclaims, and avoid them whenever possible.
2. Protest questionable unemployment insurance claims. Donot allow employees to file unjustifiable claims against you. Itcan take time and effort to contest questionable claims, but it isworth it in the long run. Your state unemployment benefitsadministration agency will let you know when someone has filed forbenefits and ask for your input. Provide it.
3. Keep careful records of your tax payments and any chargesagainst your unemployment insurance account by formeremployees. Errors have been known to be made. If one is made,protest it and document it. File your tax payments on time tobolster your position as a dutiful corporate citizen.
