Improper payment of benefits is often the result of inaccurate or insufficient information available to determine a claimant's eligibility for benefits claimed. Employers pay for these improper benefits through higher taxes.
Learn more about Protecting Your Business From Higher Taxes (pdf).
In 2010, American employers faced an estimated $6.86 billion in additional UI costs due to improper payment of UI benefits. Employers can reduce costs and expenses by:
- Maintaining accurate records of services performed by employees.
- Properly classifying individuals who perform services as employees rather than independent contractors, in accordance with UI Act definitions.
- Accurately and timely submitting quarterly wage reports and paying UI contributions.
- Reporting all new and rehired employees to the State Directory of New Hires by the due date, as required by federal and state laws.
- Providing complete and accurate Employee Separation Information.
- Responding promptly to request for verification of weekly earnings.
- Understanding employer responsibilities under the UI Act, and knowing that IDES has data sharing agreements with other state and federal agencies.