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Audit Benefits Charges & Track Unemployment Insurance Costs
Unemployment Insurance Improper Payments
Improper payments are payments that should not have been made or that were made in an incorrect amount under statutory, contractual, administrative, or other legally applicable requirements; and include any payment to an ineligible recipient.
What Causes Improper Payments?
- Benefits Year Earnings: Claiming UI benefits after returning to work or failure to accurately report earnings.
- Separation: Ineligible due to voluntarily quitting employment or discharge for cause.
- Work Search: Failure to actively seek employment.
- Employment Service Registration: Failure to register for referral to work or reemployment services.
- Able & Available: Ineligible due to not being able to work or being available for work.
- Base Period Wages: Error in calculating claimant's benefit based on wages earned before the period of unemployment.
What Impacts Do Employers Have From Improper Payments?
State
Unemployment Tax Rates (SUTA) are an employer's only controllable tax.
By managing and auditing their unemployment claims properly, which includes responding to all requests for information timely and completely when protesting claims, as well as auditing benefits charge assignments, employers can positively influence their SUTA tax rates and thus, minimize the impact on the company's bottom line tax expense.
What Is My State's Improper Payment Rate?
Did you know that Virginia has the highest improper payment rate in the United States at 43.80%? Over three years, between 2019-2022, the DOL recorded that Virginia's state unemployment insurance fund paid out an estimated $817,316,905 in improper payments. Check out your state's estimated improper payment rate at dol.gov/general/maps.
Outsource UI Cost Reduction & Reduce Workload: With Total UCM, our experts meticulously review each claim, protesting the charge on your behalf and reducing your chance of improper unemployment insurance payouts.