For Immediate Release:

Tuesday, March 4, 2014

It has been said that the lyrics of a good country song represent the lives of those who listen. Certainly who could argue with songs with titles like “The Streak”, “Timber, I’m falling in love”, “How can I miss you if you want go away?” and my personal favorite “Take this job and shove it” by Johnny Paycheck in 1977. (how about the irony of Paycheck?) While “Take this job and shove it” was the anthem of a generation that had just come though the recession of the 1970′s it also can be utilized to discuss former employees who file for unemployment benefits.

Under the regulations an employee is not eligible to collect unemployment benefits if they are:

1. Fired for cause
2. Or resign voluntarily (?Take this job and shove it?)

Unfortunately many businesses believe that trying to appeal a claim for unemployment benefits is futile, but that is not the case. In fact it is necessary. If a former employee is trying to collect benefits that will be charged to against the companies experience; this can increase the percentage the company must pay.  The rate (percentage) assessed against an employer is calculated using one of two methods, reserve ratio or benefit ratio. For space purposes we will not get into the details but in general both calculations look at the amount the company has paid in unemployment taxes and the amount of claim dollars paid out to former employees of that company. If certain parameters are not met the rate is increased or decreased accordingly.
Here are some recommendations to maintain or reduce your unemployment rate.

1. Submit SUI reports in a timely manner.
2. Respond to any claim notice completely and promptly.
3. If the individual was terminated for cause or left voluntarily then be prepared to attend an appeal hearing.
4. Offer job openings to qualified ex-employees.

One other option is to make voluntary contributions to the unemployment fund, similar to a one-time payment to increase the reserve. This strategy is only available in 27 states and should be carefully considered. There are several factors that can determine the impact this type of payment can have on the rate. (if you would like to know if your state allows voluntary contributions email gary@illuminaregroupinc.com)
If you decide to appeal a claim, documentation is the key. If the employee was termed for cause, then make available disciplinary documentation, employee evaluations and any warnings that had been given the employee. If the employee resigned voluntarily bring the resignation notice the employee provided and exit interview documentation. Many times former employees will state that they felt they had to resign for reasons they could not disclose to the employer. A good exit interview will try to uncover any ?hidden? issues. In addition always review your SUI statement to make sure you have not been charged for claims not related to your company.
Appeal hearings are supposed to be ?neutral? however it seems many times that ?neutral? appears to mean ?on the employee?s side?, but with proper preparation and documentation you can successfully appeal unemployment compensation claims.
So the next time an employee says ?take this job and shove it? you will now have a reason to appeal any unemployment claim they may make later. If you have additional questions regarding unemployment insurance then contact Gary@illuminaregroupinc.com (The Payroll Answer Guy) or call 615-542-1919.