Increasing State Unemployment tax rates and fees have the attention of companies throughout the United States. While some of these costs are unavoidable, companies can do their part to keep costs down by managing employee terminations and unemployment claims properly. Over the next few weeks, we will look at ways that you can help to mitigate the controllable costs in unemployment.  

The first step is knowing exactly what unemployment benefits are and what to do when you get a claim.  Some employees mistakenly think employment that ends for any reason entitles them to unemployment benefits. Unemployment is actually meant for people who lose their jobs through no fault of their own. Laid off employees are the perfect candidates for this benefit. People who voluntarily quit to work somewhere else are not eligible. We get into a grey area when it comes to terminations for cause. In these cases, unemployment is denied only when the employer can prove willful and gross misconduct. This is where proper documentation becomes highly important. 

Nextep processes PEO clients’ unemployment claims. Your Human Resources Consultant will need the following from you, upon receipt of a claim, to ensure a successful retaliation:

• Termination reason and date
• Resignation letter if the employee quit
• Handbook Acknowledgement signed by the employee
• If the employee was fired, please provide signed written warnings, signed performance improvement plans, performance reviews, and the final incident that led to the termination.

In next week’s HR Tip, we will look closer at the final incident and how crucial it is to unemployment claims.