In the last two posts ( http://ow.ly/g2DUQ and http://ow.ly/g2MiU) I shared information on how to understand the Notice of Contribution Rates and Statement of UI Reserve Account. One of the charges to your account is for claims paid out to former employees who were found to be entitled to benefits. Today’s post is to discuss what you can to do reduce/prevent these charges.
1. Work with employees to avoid separations. Every discharge has the potential to increase your rate. If the employee is found to have merit to their UI claim, they will be paid benefits and those payments will be charged to your account.
2. When a layoff is unavoidable, contact your local EDD office for assistance in finding work for the displaced employees.
3. Respond in time to all claim notices. You have a short period to respond. If the employee is not entitled to benefits but files a claim you don’t dispute, they will be awarded benefits.
4. If possible, offer former employees a job when you are notified they are drawing UI benefits. This of course is only possible if you have a position available and they were let go through no fault of their own.
5. Submit your UI payment within the required time limits, along with accurately completed DE88 coupons (if checks are mailed directly to the EDD. If filed online, make sure all information is entered accurately). All funds need to be properly distributed among the tax categories. Entering only the total amount paid on the coupon without the breakdown for types of tax paid could cause your UI rate to increase due to incorrectly allocated payments. Failure to pay timely will incur interest and penalties.
6. Submit your Quarterly Contribution Return and Report of Wages (Continuation) timely. These reports are due the month following quarter end. Failure to file timely will incur a penalty for each employee employed during the quarter.
As your payroll company, we will pay the tax and file the reports timely for you. If you are doing your own payroll but find it complicated and overwhelming, we are here to help. Contact us today. 310-534-5577 or contact@abandp.com.
