UNEMPLOYMENT COST MANAGEMENT TRAINING...Online Management Reports which outline unemployment...

9/2/2015

1

Confidential and Proprietary

UNEMPLOYMENT COST MANAGEMENT TRAININGSeptember 2015


PARTNERSHIP DETAILSPSAB and Equifax Workforce Solutions

2

9/2/2015

2

Confidential and Proprietary 3

Equifax Workforce Solutions in Partnership with PSA B

Equifax Workforce Solutions, formerly known as TALX, provides services to HR, Payroll, and Tax departments for organizations of all sizes and industries; from Fortune 500 companies to small private employers, as well as public sector and non-profit organizations.

The goal of our partnership is to reduce administrative burden and costs, and provide consultation on unemployment cost management.

Services EWS Provides to PSAB:� Consultation and administration of unemployment claims, decisions, appeals, and

hearings� Hearing Representation� Charge Auditing� Online Management Reports which outline unemployment activity, results, and

compliance metrics


Dedicated Service Team

Account Manager

Julie Conrad� [email protected]� (513) 826-4994� (717) 228-8567

� Julie is responsible for:– The overall operation for the PSAB program– Assistance with reports– Training sessions– Power of Attorney and Change of address documents – required by state– In person visits– Any questions, any time…

9/2/2015

3



Unemployment Insurance Consultant

Lauren Epps� [email protected]� (800) 846-9215 ext. 2825

� Lauren is responsible for:– Initial contact to members– Notice of claim– Compiling initial separation information in response to state requests.– Composing letters in response to claims on behalf of the members.– Provide status updates as requested



Unemployment Hearing Coordinator

Stephen Wingard� [email protected]� (800) 846-9215 ext. 2722

� Stephen is responsible for:– Reviewing with you losing determinations and preparing appeals– Scheduling unemployment hearing attendance– Composing appeal letters on behalf of the members– Coordinating representatives to attend the hearing with you– Providing status updates, at your request, on any pending case

9/2/2015

4


UNEMPLOYMENT PROCESS

7


The Great Depression

1935: Federal laws require

states to enact legislation

The claimant must …

Be able to work

Be available to work

Be actively seeking work

Meet state’s monetary requirement

Be unemployed through no fault of their own

History of Unemployment System

Unemployment benefits

paid by the employer

Financed by federal (FUTA)

and state employer tax (SUI)

8

9/2/2015

5


How System is Funded: By Employers

Merit Rated Tax� Tax based on employer experience� Paid on portion of each employee’s earnings� Includes various socialized costs

Direct Reimbursement� 501(c)(3) Non-Profit, Government Entities, and Indian Tribes� Dollar for dollar reimbursement as benefits are paid� Certain protest rights on past claims are lost

9


Claims Basics

Base Period

• Used to determine monetary eligibility for benefits

• Minimum earnings

• Sets weekly benefit amount

2015 CALENDAR 2015

2008 CALENDAR 20082014 CALENDAR 2014

Base Period

Lag Quarter

Current Quarter

9/2/2015

6


Claims Basics

Benefit Year

• One calendar year

• Time to collect benefits

• Usually 26 weeks of benefits in a Benefit Year

26 weeks of benefits

Benefit Year

Claim Filed

2015 CALENDAR 2015

2014 CALENDAR 2014


Unemployment Claim Eligibility and Liability

3Q

2013

4Q

2013

1Q

2014

2Q

2014

3Q

2014

4Q

2014

Last employer claim – The claim notice sent to the most recent employer from which the employee has separated.

Base period claim – The claim notice sent to each employer for which the claimant worked during the base period. Base Period earnings determine weekly benefit amounts and employers chargeable proportionate to wages paid.

Alternative base period (if applicable) – Former employees who fail to qualify under the original base period may qualify under an alternative base period on wages paid during the last four calendar quarters prior to the claim filing date.

12

9/2/2015

7


Types of EmployersIf employment is covered under the Pennsylvania UC Law, employers are responsible for UC coverage of their employees. However, political subdivisions and certain nonprofit employers have a choice of two methods of financing this coverage. These are:

�Contributory - employers pay contributions based on a taxable wage base of $9,000 paid annually to each employee

�Reimbursable - employers may elect, if qualified, to reimburse the UC Fund for the amount of benefits chargeable to their account on a dollar-for-dollar basis.

13


Reimbursing vs. Contributory

14

REIMBURSERS:

•Receive monthly or quarterly invoices for benefit charges• Pay dollar-for-dollar into state fund for benefit charges• Cannot request relief from charges for base period claims unless the annual solvency is paid• Payments for benefit charges may be less than tax payments for contributory employers• Some employers may be required to pay a collateral deposit or surety bond• Are not affected by tax rate penalties due to poor economic conditions

CONTRIBUTORY:

•Assigned an annual contribution rate which is applied to the taxable wages of each employee• Taxes are paid on a quarterly basis as calculated on the UC-2 form• Tax rates can vary depending on business type, unemployment history, state’s economic status, and amount of taxable payroll• Rates can range from 2.23% to 13.55%• Affected by tax rate penalties imposed due to poor economic conditions

9/2/2015

8


Claim Types

Separating Employer Claims�When an employee separates from you and files for unemployment.

Base Period Employer Claims�When an employee separates from you, obtains other employment,

separates from that employer and then files for unemployment.�These claims cannot be contested by reimbursers unless the state

solvency fee is paid.


Current Process and Procedures

Employee separates. Claim is filed and sent to nearest EFX mail center.

Once claim is received by EFX, it is scanned into our system and sent to

Your Unemployment Insurance Consultant. A request for information

will be sent to location contact.

Contact provides information to the UIC. We will be requesting specific details from final incident and any

supporting documentation.

The UIC will submit the completed claim form to the state. A state

adjudicator will review all of the details of the case. Additional details or

rebuttal statements may be requested at this time.

Once all of the details have been reviewed, the adjudicator will make a

decision. This decision will be mailed to the claimant and to EFX. Either party

may appeal if unsatisfied with outcome. Your UIC will notify you if benefits have

been awarded.

If either party appeals, they must submit this in writing by required due date. Your UIC will handle the appeal

for you. By filing appeal, we are requesting an administrative hearing.

All hearing details will be sent with hearing notice once it is scheduled.

All parties will receive a copy of the hearing notice. All previously submitted details will be included. Your Hearings Consultant will contact the witness for

the case and prepare them for the hearing. Once hearing is complete a

hearing decision will be mailed.

Once hearing officer has reviewed all details of the case, he will issue a

decision. Copies will be mailed to all parties. The UHC will notify you of

decision. Either party may appeal to the Board of Review if they are not satisfied with the outcome. No new

testimony or documents can be submitted at this point.

If you request an appeal to the Board of Review, Equifax will complete all required paperwork. The Board will

review all of the details of the case and make a final decision. This is typically the final decision for the case. The only level of appeal after this is to a

court of law.

Separation Claim Communication

Appeal Decision State

Hearing Hearing Decision Board of Review

9/2/2015

9


Types of Separations

Lack of Work• Completed

Assignments

• Plant closing

• Position eliminated

Voluntary Quit• “I quit”

• No show/No Call for three days

Discharge• Misconduct

• Attendance

• Violation of Policy


Benefits after a Voluntary Quit

To collect benefits, the burden of proof is the responsibility of the former employee to show:

There was good cause

to quit attributable

to the employer

9/2/2015

10


19

Voluntary QuitProtests Claimant has

the Burden of Proof

Documentation•Letter of Resignation

•Employee Statement

•Receipt of Policy

•Other evidence of quit

Forced resignation

= discharge


Benefits After a DischargeThe burden of proof is on the employer to prove that

the employee was discharged for misconduct

• Misconduct means a deliberate and willful disregard of employer’s interest or repeated violations of policy

• Documentation!

• Two or more years between incident and claim

• Memories fade and supervisors change

9/2/2015

11


21

Effective Documentation –CRUCIAL!

• Sloppy documentation costs money

• Is frequently not accurate and is unreliable

• Makes effective claims response difficult

• Effective documentation saves money

• Is usually accurate and reliable

• Makes effective claims response possible


Discharge Typically Not Disqualifying

Poor Work Performance� Wouldn’t or Couldn’t?� Lack of ability – couldn’t –

deemed beyond employee’s control

Attendance� Beyond the employee’s control

Isolated Incident� No prior warnings

Good Faith Error� Company’s best interest

PROTEST

22

9/2/2015

12


Use Caution With the Following Terminology

“inability”

“unsatisfactory work”

“inefficiency”

“mutual agreement”

“poor performance”

• “Deliberate”

• “Willful”

• “Negligent”

• “Knowingly violated…” or “Repeated violations of….”

4 All of these could result in payment of benefits.

4 It is the employer’s responsibility to hire the right person for the job.

To Effectively Communicate Misconduct Use the Following Terms:


Misconduct is generally defined as a wanton disregard of an employer’s policy. If you cannot prove misconduct, your case will probably be adjudicated as

poor work performance (inability to do the job).

Is the person trying but just not able to grasp the duties of the job?

Does the individual have the skill set to perform the job?

Can you show the individual performed this job in an acceptable manner for a reasonable period of time?

Did he/she knowingly do anything to cause the termination?

Misconduct vs. Inability (Wouldn’t vs. Couldn’t)

24

9/2/2015

13


Lack of Work

Not Disqualifying� Intent of Unemployment

Job Eliminated� No positions available

Reduced hours� Full-time to Part-time

Job Offers and Refusals

25


UNEMPLOYMENT HEARINGS

26

9/2/2015

14


27

Unemployment Hearings

• Date, Time, Place

• Liability

• Separation Issues & Other Issues To Be Discussed

• Exhibits

• Environment

• Testimony

• Representation


Hearings Presentation Tips

Preparation� Person(s) with firsthand

knowledge must attend hearing� Copy of company policy relating

to infraction� Obtain and review file from state

hearings clerk prior to hearing

9/2/2015

15


Hearings Checklist

�Dates of employment

�Rate of pay

�Job description

�Days/hours worked

�Reason for separation

�Signed resignation (voluntary quits)

�Written warnings (discharges)

�Copy of policies and signed receipt

�Description of the final incident preceding separation (discharges)


Hearings Checklist

�Provide copies of all documents�Former employee�Hearing Officer�One for your reference

�Telephone hearings�Copies must arrive before hearing

date

9/2/2015

16


Hearings Presentation Tips

Stay focused on the main issue

Object to irrelevant testimony or questions

Remain in control

Take notes of claimant's testimony to help with your rebuttal

Offer a summation where needed to clarify a complex case; otherwise, rest on the record


UI INTEGRITY LEGISLATIONNew Federal Guidelines

32

9/2/2015

17


Avg annual unemployment cost per employee remains 48% higher than pre-recession

Unemployment Cost Per Employee

Unemployment costs have increased approximately $149,700 per 1000 employees

States compensating for increased claims through higher taxes

Annual unemployment cost per employee has risen to $463

Unemployment tax cost rose 48% since 2008

Increases in unemployment tax rate magnified by rise in state wage bases and expanded unemployment


Recently implemented UI Integrity legislation has shifted the focus of claims response

State UI agencies must prohibit relieving employers of benefit charges to their unemployment tax account when both of the following exist:

UI benefits were improperly paid due to failure to respond timely or adequately to the state’s request for information relating to the claim

The employer has established a pattern of failing to respond timely or adequately

Sec. 252

The Trade Adjustment Assistance

Extension Act of 2011

The focus has shifted from protest decisions to compliance requirements

9/2/2015

18


Employers must now respond to all claims to remain compliant and avoid financial penalties

Moving Forward: Employers are required to respond to all claims in order to remain in compliance with new regulations and avoid financial penalties.

Previously: Employers made a choice between responding or not responding to unemployment claims - often responding only if it was considered an improper claim.

A Matter of Compliance A Protest Decision


State Information Data Exchange System (SIDES) was developed to promote UI Integrity

A secure, web-based interface facilitating direct data exchange with state unemployment insurance agencies

Provides clients with optimal time for gathering separation details and documentation

Increases accuracy of response via standardized information request

Reduces additional state requests for information and employer effort in responding to these requests

Decreases in erroneous benefit charges leads to more accurate employer tax rates

46 states are live on SIDES

9/2/2015

19


CONTROLLING YOUR UNEMPLOYMENT COSTSUnemployment Best Practices

37


Unemployment Best PracticesImplement sound company policies, that are not too vague but not too complicated� All employees need to be made aware of company policies at the time of hire.� Their acknowledgement of receiving a copy of the policies or company handbook should be recorded in the form of a

signed documents or electronic signature.� Follow your policies as outlined and enforce them uniformly or they cannot protect you.

Documentation is key!� Document all employee activities, such as warnings (verbal or written), investigations, suspensions, etc.� All documentation should be specific and include the details of the incident, the date of the incident, name of manager or

witness involved, and both current and next disciplinary steps.� File all documentation and keep available for 2 years. � Send all pertinent documentation with initial response including: specific details of the final incident, a copy of the policy

violated, signed acknowledgment of the policy, copies of prior warnings, and witness statements if applicable. If the individual voluntarily quit, send the letter of resignation if available.

Unemployment Hearings – The first hand witness needs to participate� If the claimant’s story is conflicting with the employer’s story, and the first hand witness is not there to provide 1st hand

testimony, the state will give more weight to the claimant’s statement.

Respond timely to all unemployment documents� Some forms have short turn-around times, but we need to respond by the state issued deadline. � Potential loss of non-charge for failing to respond timely with sufficient information

Monitor your Unemployment Activity� Use Equifax online reports to view your claims activity and charges� Equifax checks for state errors, but as the employer you will have more insight and catch things we may not

38

9/2/2015

20


This will allow for the

most expeditious

handling and processing

of the pending case

� Immediately call Equifax to notify them that you have received Unemployment Documents directly.

� Fax all documents to designated Equifax contact.

Documents Mailed Directly to Members


40

$ Use proper hiring techniques/minimize turnover

$ Perform job evaluations on regular basis

$ Utilize probationary periods

$ Give employees copy of work rules & obtain acknowledgment

$ Report offers of work & refusals to state agency

$ Document leave of absences

$ Conduct exit interviews

$ Obtain resignation letters

$ Document discharges

$ Respond to all unemployment claims

Cost Control Suggestions

9/2/2015

21


Questions?

41

Julie ConradAccount ManagerEquifax Workforce [email protected]. 513-826-4994Cell: 717-228-8567

UNEMPLOYMENT COST MANAGEMENT TRAINING...Online Management Reports which outline unemployment...

Documents

Transcript of UNEMPLOYMENT COST MANAGEMENT TRAINING...Online Management Reports which outline unemployment...