Unemployment Cost Control | Human
Resources | Supervisor Training | Other
Services | Special Services
UNEMPLOYMENT COST CONTROL
Administration
Claims processing
State inquiry responses
Tax rate analysis
Benefit charge management
Taxes
and Auditing
Verification of state unemployment insurance tax rates
Audit of benefit charges
Verification of benefit credits due
Voluntary contribution recommendation
Tax rate consolidation for mergers and acquisitions
Appeal
Process
Appeal preparation
Hearing representation
Tax hearing representation
Written arguments to the California Unemployment Insurance Appeals Board
Claims Administration and
Hearing Representation
Analyze separation information to determine if it is a protestable case
Respond to appropriate agency within the statutory guidelines
Appeal unfavorable decisions
Gather the essential evidence to present at hearings
Represent clients at hearings
Prepare witnesses
Consultation
Case-by-case consultation aimed at preventing liabilities
Review and development of personnel policies, practices, and procedures
Training for supervision on proper documentation
Seminars for key personnel
Periodic reports and newsletter
The
administration of unemployment compensation cannot be left to chance.
Each quarter
you, as an employer, are required to deposit unemployment taxes in an
account specifically set up to pay unemployment benefits. The amount
you have to pay into the account is determined by the amount you have
paid out in benefits on a dollar-for-dollar basis. (For multi-state
employers it should be noted that each state varies in its regulations.
Potts & Associates offers the expertise necessary to assist its
clients in every state.)
The fastest
way to reduce your company's unemployment taxes is to produce an efficient
and consistent effort. Potts & Associates can provide a program
that will cut your operating expenses while reducing your personnel
staff's workload and complying with all government regulations. We do
not rely on a single system, but rather a combination of people, procedures,
and utilization of sophisticated data processing equipment to obtain
the best results for your company.
We will
customize a program for your company to meet the following objectives:
- Provide
an experienced staff and cost-effective method of monitoring your
unemployment activity
- Project
an annual tax saving for unemployment insurance
- Reduce
the burden on your staff by handling all unemployment-related matters
The
program will include:
- Administrative
services
- Tax
analysis
- Auditing
- Representation
before state agencies
- Continuing
education
- Consultation
(24 hours a day, seven days a week 365 days a year)
The implementation
process is simple and includes an orientation program with key personnel.
An HR representative is assigned to you with a team eager to assist
your personnel staff.
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Tax
Analysis
Most employers
are aware that the true measuring rod of the services provided is the
reduction of their unemployment tax rate. They are not normally aware
that this reduction is brought about through a number of integrated
steps.
We ask
our clients to send us copies of their quarterly contribution reports
so that we can verify the accuracy of each report, and confirm with
the state that the amount you are reporting is being properly credited
to your reserve account. When the state issues your new tax rate, we
verify the information the state used to calculate your rate. The appropriate
action is taken when errors are found. We maintain these records for
a period of seven years.
Many states
now permit voluntary contributions. The key is to remember that it is
permitted only once a year. Our staff will calculate your contribution
and determine if a voluntary contribution is to your benefit by way
of a tax rate reduction. If it is to your benefit, our staff will recommend
the additional payment into your reserve account, get the lower tax
rate, and calculate the savings based on the lower rate.
Mergers
and acquisitions are additional areas where there may be savings. Our
staff will combine the reserve accounts of the merging companies and
calculate a new tax rate based on the numbers. There are times when
it is not feasible to combine tax rates. Our staff will discuss those
options at the appropriate time.
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Auditing
Potts &
Associates has emulated the various state systems that determine your
liability on a per-claim basis. This same system permits P&A to
monitor all claims for the duration of benefits and collates all information
received, such as claims, determinations, and benefit charges. This
information is used to verify the state’s accuracy in paying benefits.
In addition, your annual tax rate is verified upon receipt. This rate
is computed from your beginning reserve balance, quarterly contributions,
and benefit charges, each of which is independently verified for accuracy
and then computed to determine your tax rate. All state errors are immediately
protested in writing. A credit is then obtained and placed back in your
reserve account. If the credit results in lowering your rate, the state
will issue a refund check to reimburse you for the overpayment.
P&A provides a quarterly activity report. Upon request, reports
can be generated on either a semi-annual or annual basis. A report can
be generated by state, region, division, or location.
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Appeal
Process
Each protested
unemployment insurance claim receives either a favorable or unfavorable
decision. In the event the decision is unfavorable, an appeal is processed
immediately. Additional information is gathered based upon the reasoning
of the department representative who rendered the decision. Information
gathered may include additional documentation or statements from witnesses.
In the event that the decision is favorable for the employer, and the
former employee files an appeal, additional information is obtained
based upon the information contained in the claimant's letter of appeal.
Again, this may include additional documentation or statements from
witnesses.
When an
appeal has been filed, the various unemployment offices will process
the appeal for the matter to be set for a hearing before an administrative
law judge. Upon receiving the hearing notice, a staff member from P&A
will immediately forward a copy of the notice to the employer contact.
Shortly thereafter, the hearing representative will contact the appropriate
witness, or witnesses, if such a witness is necessary. All witnesses
are prepared prior to the hearing date. Preparation includes going over
all the facts and explanations of the key issues involved. On the hearing
day, all witnesses are requested to appear prior to the start of proceedings
for an additional recap of the facts and issues and to be informed of
the hearing protocols. The hearing representative will submit all pertinent
documentation into evidence and guide the witnesses through the hearing.
After the hearing has concluded, the hearing representative conducts
a briefing to explain the positive and negative aspects of the case.
After the
hearing process has been concluded, each party to the hearing has an
opportunity to appeal any unfavorable decision to the appropriate appeals
board. This process is done entirely by the hearing representative through
written argument; no new evidence will be considered or accepted.
As a part
of the continuing process to monitor a client's unemployment tax account,
the staff of P&A will audit all benefit charge statements received
from the various state unemployment agencies. Depending on the state,
the auditing can be monthly, semi-annually or annual. Unwarranted charges
can range from erroneous calculations by the state to improper assessments
based upon subsequent favorable decisions not effectively communicated
to the assessment unit. The staff of P&A will process a letter of
appeal based solely on the erroneous amount charged to the employer's
reserve account. These tax hearings are attended by a representative
from P&A without the necessity of the employer furnishing witnesses.
Following a favorable decision, the dollar amount in question is automatically
credited to the employer's reserve account. Receipt of these credits
is confirmed by a representative from P&A.
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Claims
Administration and Hearing Representation
P&A
established its claims control program to respond to all requests regarding
individual claims. When an individual is separated from employment,
that individual's supervisor completes a separation report or termination
letter. These forms are forwarded to us and placed on file for future
reference should a claim be filed.
When the initial claims are received they are forwarded to P&A with
a copy of the separation report. Upon receipt P&A will respond within
the statutory time prescribed by law. When the state issues its decision,
P&A will receive a copy and appeal, as applicable, all unfavorable
decisions. P&A will request a hearing and provide representation.
In the event that a favorable decision is issued and appealed by the
claimant, P&A will provide representation.
Base period claims will come directly to P&A, which will, upon receipt,
pull the information and proceed accordingly. If P&A receives any
claim without the appropriate information attached, P&A will contact
the client to obtain the information.
P&A will be your authorized representative before the various state
agencies and, as such, will be responsible for processing all unemployment
insurance claims. If there are any reasons why unemployment benefits
should not be paid, this information will be forwarded to the state.
All information communicated to the state should be through one focal
point. Because the guidelines established by the state can be extremely
technical, the deciding factor as to whether unemployment benefits are
paid may not be what the employer says but how it is said. P&A communicates
all responses clearly and concisely.
When determinations are received from the various state agencies, our
staff reviews the decision. If the state issues a decision that is not
warranted, an appeal is filed immediately. Upon receiving a notice for
a hearing, our staff will immediately contact you and discuss witnesses
and case preparation. A representative of P&A will attend the hearing.
If a witness is necessary, he/she will be interviewed in advance and
prepared for the hearing. When a written appeal is applicable, our staff
will respond in a timely and efficient manner. All written appeals are
based on the transcripts and evidence submitted at the prior hearing.
P&A's management reporting system is designed to provide all data
necessary to monitor and evaluate the effectiveness of the unemployment
cost control program. Each quarter, you will receive a report of all
activities undertaken by P&A, including claims filed, appeals, hearings,
and board appeals, with the names of each claimant and the disposition.
The reports are customized for each client to reflect claims and hearing
activity by state and by location within the state.
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Consultation
The well-trained
staff of P&A can analyze a situation and determine whether there
is a problem, not only for unemployment insurance claims but also for
other high-impact areas of the law.
P&A recognizes that all businesses do not operate between 9 a.m.
and 5 p.m. Situations arise during the later work shifts that may require
immediate action. P&A is proud of the fact that we offer consultation
24 hours a day, seven days a week, including holidays.
The ability to handle these situations on an as-needed basis may be
critical to the outcome. Clearly this benefit gives P&A a distinct
advantage over its competitors.
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