| Many business owners and managers have found | | | | To help avoid unemployment claims from |
| themselves in a quandary over whether or not to | | | | employees who 'quit', have an accurate job |
| fight an unemployment claim. Who is eligible? Who | | | | description detailing current and even possible |
| pays for a claim? How does this affect my | | | | future duties. This will avoid surprises to the |
| business in the long run? Since it's your taxes that | | | | employee. |
| pay for unemployment benefits, it's in your best | | | | Screen your potential new hires carefully to make |
| interest to become familiar with the how this | | | | sure they are up for the job and flexible enough |
| program works. Here are some facts about | | | | to switch duties or even locations in the future if |
| unemployment that might just help to make the | | | | necessary. |
| decision whether or not to fight a claim a little | | | | Now if your employee left work for a compelling |
| easier. | | | | personal reason not attributable to the employer, |
| Who gets what? - Unemployment benefit | | | | they may still be eligible but your account will not |
| payments are made to workers (claimants) who | | | | be charged. |
| are temporarily unemployed through no fault of | | | | Who pays for unemployment benefits? - Simply |
| their own, and who are attempting to re-enter | | | | put, employers. When you pay taxes to the |
| the labor force. As an employer, your | | | | State Unemployment Tax Administration (SUTA), |
| unemployment taxes pay the entire cost of | | | | this money is put into an account to pay for |
| unemployment benefits paid. Unemployment taxes | | | | possible future claims. If it is determined that a |
| cannot be withheld from your employees' wages. | | | | former employee is in fact eligible for benefits, |
| Only wages paid during a 12-month period, called | | | | this money is then charged to your account. You |
| the base period, are used in establishing | | | | will receive quarterly reports detailing all the claims |
| unemployment benefit amounts. The base period | | | | paid and how much was paid to each individual. |
| is the first four of the last five completed | | | | To Fight or not To Fight? - This is up to you. Our |
| calendar quarters prior to the date the claimant | | | | advice, FIGHT. Unemployment benefits were set |
| files for benefits. | | | | up to assist individuals who found themselves |
| The highest amount of wages paid in a quarter of | | | | unemployed through no fault of their own. In |
| the worker's base period determines the weekly | | | | other words, if the employee was laid off due to |
| benefit amount. The minimum weekly amount is | | | | a reduction in force, they had no control over the |
| $60, the maximum is $240. | | | | decision and would have probably continued |
| The claimant may collect up to 26 weeks of | | | | providing satisfactory work for their employer if |
| benefits, or 1/3 of his/her total base period | | | | they had the chance. Furthermore, unemployment |
| wages, whichever is less, during a benefit year - a | | | | benefits were meant to assist these individuals to |
| 52-week period. The maximum amount that may | | | | keep food on the table while they are 'actively' |
| be collected is $6240. | | | | seeking other work. Benefits were not meant to |
| Now eligibility will depend on the reason the | | | | be never ending or, to be a sole source of |
| claimant left their last job. Whether the last job | | | | income. |
| was your business or not doesn't matter. If they | | | | If your former employee was terminated for |
| worked for you during the based period you may | | | | cause, you should fight or dispute the claim. Here's |
| still receive a claim. | | | | how to do it: |
| Remember, a claimant is only eligible for benefits | | | | 1 - When you receive the claim, don't ignore it! |
| if they become unemployed through no fault of | | | | You only have 10 days to respond so make this |
| their own. So keep good documentation on | | | | a priority. |
| performance issues as it will help you in the long | | | | 2 - The form will ask you to verify the reason |
| run. | | | | the individual became unemployed. If you told |
| The last straw! - Many employers believe that as | | | | your employee that you were 'laying them off', |
| long as they have historical documentation, it will | | | | you can not change your mind and list the reason |
| help them win an unemployment claim. This may | | | | as 'terminated'. This is why it is important to be |
| not be so. The unemployment claims | | | | straight with your workforce especially during a |
| administrator in your state will look at the final | | | | termination. If you are firing them, be clear with |
| incident that caused the termination. For instance, | | | | them and tell them that they are fired. Hey, it |
| if Joe had repeated write-ups in his file for | | | | works for Don Trump. |
| attendance issues but the reason for termination | | | | 3 - You will be asked to attach any supporting |
| was insubordination, Joe may just win his claim for | | | | documentation. Here we go again with |
| unemployment benefits. Typically the claims | | | | documentation. Attach write-ups and |
| administrator is going to want to see progressive | | | | documentation of verbal warnings that will show |
| discipline that leads to no other choice but | | | | progressive discipline leading to the termination. In |
| termination. If Joe is going to be terminated for | | | | other words, you will want to show the |
| insubordination, make sure your documentation | | | | Unemployment Administrator that despite |
| shows that he has been warned about this | | | | warnings and re-direction, your employee |
| behavior but continued until it left you no choice. | | | | continued the unacceptable behavior leaving you |
| But they QUIT! - If the claimant was discharged | | | | no choice but to terminate them. |
| for misconduct or quit without good cause in | | | | 4 - Run it by your HR department. Have your HR |
| connection with the work, benefits will be denied | | | | Department assist you with fighting |
| for as long as he/she is currently unemployed. | | | | unemployment claims. They've just about seen it |
| But what happens when an employee voluntarily | | | | all and know how to properly file a dispute and |
| quit with good cause in connection with the work? | | | | win. |
| For instance:o Sudden and complete change in | | | | 5 - Appeal? That's right, if you dispute a claim and |
| work duties making it difficult to continue | | | | benefits are denied to the individual, they may still |
| workingo Sudden change of workplace making | | | | appeal that decision. In that case, you will be |
| travel distance unreasonably longero Unsafe work | | | | invited to attend a hearing by phone or in person. |
| environment based on the employee's abilities | | | | Again, don't ignore it! You got this far, don't let a |
| Examples like these may be reasons allowed by | | | | hearing scare you. Participate in the hearing and |
| the Unemployment Administrator for payment of | | | | have your documentation and notes ready. Be |
| unemployment benefits. | | | | honest and be specific. The hearing officer will |
| Of course, many reasons may be subjective so | | | | then make a determination which becomes final. If |
| it's a good idea to discuss possible changes to an | | | | benefits were paid to the individual and it is |
| employee's work environment or duties with your | | | | determined that they were not in fact eligible, |
| Human Resources Manager to discuss implications | | | | they will be asked to pay that money back to |
| related to potential claims like unemployment. | | | | your unemployment account. |