First, People are afraid of change in technology. Especially that which they don’t understand.
Is your company truly able to uncover and recover overpayments of unemployment benefits? Are you able to track what is valid and invalid in a spreadsheet? And how do you really know when a charge is in error?
Unfortunately, state unemployment divisions do make errors from time to time and charge employers incorrectly for unemployment benefits. These overpayments can have big financial consequences for employers. But how do you know if an unemployment benefit charge is valid?
How Big of an Issue are Unemployment Benefit Overpayments?
When we talk about overpayments on a national level, it is a large and to some, a shocking number. How large? Try 13%* of all unemployment benefit payments are in error.
This adds up for employers by driving up State Unemployment Insurance (SUI) tax rates and overall costs, including reimbursing employers who pay states directly.
How Can You Best Navigate This?
Invalid charges can range from incorrect separation information from the employer to simply an error on the state side. Auditing every single line item can be a big drain on employer resources. Furthermore, many employers don’t have the expertise to fully uncover what is invalid and why. Reviewing monthly and quarterly unemployment benefit charge statements takes rigor and an automated process to help recover all funds owed to you.
Listen to Why Unemployment Benefit Charge Checking Shouldn‘t be Overlooked from The Workforce Wise? Podcast to hear from the unemployment professionals at Equifax Workforce Solutions as they break down the tricky process of uncovering overpayments.
*From: CY 2017 QTR 2 To:2018 CY 1 QTR DOL Data, 2018
**DOL, 2016 average cost = avg. weekly benefit payment x average length of claim x replacement cost multiple (exact cost is dependent on state-specific parameters) https://oui.doleta.gov/unemploy/bam/2016/IPIA_2016_Benefit_Accuracy_Measurement_Annual_Report.pdf ***Equifax Client Data