“Down in the Delta with the Unemployment Blues” 

Memphis, What You Didn’t Know!James Winchester, John Overton, and Andrew Jackson were the investors who founded the city on May 22, 1819.

The Memphis Zoo has an amazing collection of more than 3000 animals, including giant pandas that have been loaned from China, all of which are housed on close to 70 acres of land and ranks 3rd nationally for Panda Viewing!

Graceland ranks only behind the White House in terms of visitors each year!

In Memphis restaurants, it is illegal to give any pie to fellow diners. It is also illegal to take unfinished pie home. All pie must be eaten on the premises!

According to records, there have been over 1000 commercially recorded songs and over 800 distinct titles about Memphis, Tennessee. More songs and titles have been produced and recorded about the city of Memphis Tennessee than any other city in the world.

This Program could have you “All Shook Up!”

Granted, Unemployment Management does not compare to The King of Rock ‘N’ Roll! This is a Financial game changer!

This is your only controllable tax! Your company Controls the outcome of the money spent on this process and the odds are stacked against you!

Largest Privately-held Unemployment Provider in the United States

Thirty-two+ Years of Experience

Organic Growth, Custom Approach!

Employment & Wage Verification, Tax Credits & Incentives

Who Are We??

NASCAR SLIDE

Why Are We Talking About This?

Unemployment Is Changing

December 31st, 201311:59 PM

January 1st, 201412:01 AM

The new formula has drastically reduced how these errors are affecting each state but does not remove the erroneous overcharges!

UI INTEGRITY ACT

Passed to help fight employer fraud and improper payments

Employer is required to provide State Agency with all claim details in a timely manner!

Failure to provide timely information will result in fines and additional liability to employer. This is determined by each state!

Federal Department of Labor estimates that every dollar you avoid equates to $1.25 saved in future taxes!

A Few States of Interest….

Arkansas – Relief of Charges Can Be Denied After 1 Occurrence and the charges will remain if reversed on appeal

Mississippi – Relief of Charges Can Be Denied After 1 Occurrence. Further definition has yet to be determined.

Tennessee – Relief of Charges Can Be Denied After 1 Occurrence. The employer’s account will be charged when the employer files an appeal and the claimant is disqualified for benefits by the Appeals Tribunal even though a timely response was submitted.

Timeliness Matters!!

“Return To Sender… Address Unknown!”

Employers Must Correctly manage the Address of Record!

Employers Need A Single location to receive all state information!

Each state provides an average of TEN days from the postage date to answer Unemployment Claims!

State Information Data Exchange (SIDES) is now active in most states!

Sufficient Documentation

State Agencies Do Not Want to see every document you have, there is a method….

The claimant DID IT would require a Witness Statement

The claimant KNEW IT WAS WRONG would require a Company Handbook/ Policy Acknowledgment

The claimant KNEW THEY WOULD BE DISCHARGED would require a Final Written Warning

Benefit Charge ManagementAll  charges  to unemployment accounts should be audited against what the state agency has on file!

The states have openly admitted to making mistakes and these mistakes can impact your tax rates! Each state is overworked and the mistakes are unintentional!

These errors have opened the door to fraud… we will come back to this!

In most states, the error rate for benefit charges is at least ten percent. This is why every benefit charge needs to be audited through a claims management program. State unemployment agency statements need to be carefully reviewed for such errors as:

The wrong employer is charged. The employer is overcharged. The employer is charged even though the account

was previously relieved of charges.

Benefit Charge Management

Why were the prisoners dancing to the Jailhouse Rock??

Because they were getting paid!!!

In Texas, more than 1,700 cases of inmates collecting UI benefits during a four-year period, costing nearly $3.4 million. 

The Philadelphia Daily News reported that 1,162 inmates in Philly, or about 13% of the city’s prison population, received UI benefits. 

In Arizona, 475 prisoners received over $1 million during a two-year period. 

In New Jersey, the state Comptroller’s office performed an audit and found more than $10 million paid to 7,600 inmates during a twenty-two month period. 

Similar information has come to light in Tennessee, Utah, and other states. 

The Sunshine State Isn’t So Sunny!!!

Our UI Claims Section has observed a recent increase in the number of fraudulent UI claims emanating from Florida. Claim forms are being received that relate to individuals who are still employed and have not actually filed for benefits. The fraudulent claims have the correct name and social security number of an actual employee. This attempt at identity theft is an effort to obtain the preloaded debit cards.

One challenge that the Florida Agency for Workforce Innovation faces is verifying the identity of a claimant when the claim is filed online. We have been in contact with the Agency by telephone and they are aware of this development. We are submitting written protests in each of these situations as well.

Employees who have been subjected to fraud are encouraged to complete the online form entitled “Report Reemployment Assistance Fraud Online” at http://www.floridajobs.org/business-growth-and-partnerships/reemployment-assistance/stop-reemployment-assistance-fraud and then contact the fraud hotline immediately at 800-342-9909

The Stars at night… are not so bright… Deep in the heart of Texas!

In recent days we have noticed an uptick in the number of UI claims emanating from Texas that appear to be filed fraudulently. The claim documents have the correct name and social security number of an actual employee, but upon investigation we find that the individual is still employed and has not filed a claim for benefits.

The Texas Workforce Commission acknowledges that there has been an increase in UI claims using stolen identities. TWC is alert to this issue and suspending the claims whenever identity theft is indicated. We have received several form letters from the TWC, relating to specific UI claims, informing the affected employee that identity theft has occurred. The TWC letter asks the employer to alert the affected employee to this issue by providing the employee with a copy of their letter.

What About Your Rates??

In many cases…

the state agency assigns your rates…

you load this into your PR system…

and pay the rate your given…

…WHAT IF THE RATE YOUR PAYING IS WRONG???

UI Tax Rate Verification

When each state assigns your tax rates, Employers need to verify the state’s calculations to ensure your rate is assigned correctly.

In the event that a discrepancy exists between the state’s calculation and your records, a protest must be filed to have the rate corrected. Documentation and Follow Up is vital! Below we have an actual example of how this may occur!

A T&T Client was found to have a Credit balance of $117,978.54The credit balance relates to an overpayment for the first quarter of 2011 ($9,770.53) and first quarter of 2012 ($108,162.65). The remaining $45.36 is an old credit that has carried forward and is not readily available on the state’s system. Taxes were paid at a rate of 7.75% for first quarter of 2012, whereas the correct rate was 3.50%. On August 6, 2013, we applied for a refund on your behalf. The refund check was issued and forwarded to your office on September 24, 2013.

TENNESSEE’S CURRENT ERROR RATE IS 13.35%!

Voluntary ContributionsTwenty-six states allow employers to make Voluntary Contributions. Employers can calculate possible voluntary contributions and verify whether it would be advantageous to pursue.

Sometimes a Little Means A lot!

Joint AccountsThirteen states allow joint account establishments to lower the overall tax liability.

Employers can evaluate the possibility of joint accounts and verify if they are open to any savings.

Transfer of Unemployment Experience

Merger / Acquisition

If payroll is transferred as a result of a merger or purchase of assets transfers of experience must be examined. The surviving entity's tax rates will be impacted for years to come according to state specific practices.

The state agencies are not going to provide you with this information so employers must do this analysis.

**Reserve Balances**

Is there vacancy at the Heartbreak Hotel??

Rates have been impacted due to no fault of your own!

Transfers of Experience Incorrect rate calculations Transfers of payroll Inflated Base Period charges Erroneous charges

Rate Calculations are the Number #1 cause of error!

Questions / Comments???