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Changes to Unemployment Integrity Laws Force Employers to Be More Diligent About Claims

Due to Federally mandated changes, states are shifting responsibility for Unemployment Integrity to employers.  After October 2013, employers will receive severe penalties for noncompliance.

The Unemployment Insurance (UI) Integrity law requires employers send complete and timely responses to the state’s unemployment claim request.  In addition to penalties for non-compliance, an employer can lose any hope of relief from charges - even if they eventually win the claim.

What this Means to You

Prompt response and accurate documentation about any employee separation is essential. These efforts help reduce overall unemployment costs, reduce the chance of overpayments to ineligible employees and improve the state agencies’ efficiency in managing the program as a whole.

Fortunately, there are several mechanisms by which employers can prevent unnecessary unemployment benefit overpayments. These include:

  • Provide timely, accurate and complete documentation in response to all claims.
  • Provide employee training for effectively responding to requests from state agencies.
  • Utilize electronic state data exchanges to expedite the delivery of critical claims information while supporting data integrity.
  • Respond promptly to Wage Earning Veriļ¬cation requests.
  • Report new hires and re-hires to state agencies within 20 days.

Once you provide PSM with the employee separation documentation, we will handle the required state reporting. 

If you have any questions or want to discuss these issues further, don’t hesitate to call Scott Tant at 317-816-7007.

Posted in: Hot Topics, HRvest
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