Unemployment Challenges...SOLVED.


The Unemployment Line
                                                     Issue: 12
July 23, 2015 - In This Issue:
How Us4U Can Help 

Many of our clients found that after using Us4U's unemployment software applications, they have a significantly higher success rate on appeals due to the structure and functionality of our applications.  They have also lowered their Unemployment Tax Rate and have received over 13% of their audited charges credited back to their SUI account. 

Please reach out to me for a no cost and commitment free demonstration to experience the many benefits of our software application.  You can start saving your company precious time and money now!!


 

  
REQUEST A DEMO TODAY ON US4U's CLAIM AND BENEFIT CHARGE EXTRACTORS

Contact Us4U today for a quick demo of the Extractor 360 application.  See how efficiently and quickly you can validate and process your UI data!The application includes the following:

  • Unemployment claims extractor
  • Benefit charge extractor
  • Tax rate notice extractor

ARE YOU SIDES INTEGRATED?

Us4U is the 1st and Only Unemployment Insurance Software provider that is SIDES certified.  


Please call or email Us4U for a Free SIDES integration consultation. 

 

Act now and integrate your current systems with SIDES as this will be the future of all UI claim processing for employers. 


 

WHAT'S NEW - WOTC

Us4U is currently developing a new software product to manage Work Opportunity Tax Credits (WOTC). Employers will be able to manage, track certifications and allow employees to answer WOTC questions online and sign electronically.  


 

RANDOM AND INTERESTING FACTS

On average, the average life of an American dollar bill is 18 to 22 months
 

UPS was founded by two teenagers and one bicycle and $100 borrowed from a friend
 

The IRS has a handbook called "Internal Revenue Manual" that provides instructions for collecting taxes in the event of a nuclear war
 

The first food eaten by an American astronaut was applesauce

 

California's unemployment rate decreases to 6.3 percent Non-farm payroll jobs increase by 29,500 

SACRAMENTO - California's unemployment rate decreased to 6.3 percent in April, and nonfarm payroll jobs increased by 29,500 during the month for a total gain of 1,890,900 jobs since the recovery began in February 2010, according to data released today by the California Employment Development Department (EDD) from two separate surveys.

The U.S. unemployment rate decreased in April to 5.4 percent. 

Read more

 

Staffing Agencies Owe Nearly $3.5 Million for Falsely Characterizing Wages as Per Diem Reimbursement 
DOL

Six Gulf Coast staffing agencies have agreed to pay thousands of workers nearly $3.5 million in back wages after Department of Labor (DOL) Wage and Hour Division (WHD) investigators found that part of the workers' wages were mislabeled as "per diem" payments for reimbursement of expenses they never incurred [DOL News Release, "Federal enforcement effort finds more than 3,000 Gulf Coast workers owed nearly $3.5 million in back wages by staffing agencies," 6/22/15].Per diem pay is intended as a way for employers to reimburse workers for lodging, meals, and other travel expenses incurred on behalf of their employer. Companies break the law when they label part of a worker's regular wages as a per diem expense reimbursement, instead of wages, to lower labor costs, avoid paying overtime, and avoid making payments toward federal and state taxes, workers' compensation, unemployment insurance, and Social Security. By attempting to reduce these obligations illegally with this scheme, employers also gain an unfair advantage over their competitors. In addition, per diem payments may prevent workers from receiving full benefits in the event of a layoff or workplace injury. The payments also are not factored into a worker's Social Security benefit computation.  

Proposed Updates to Overtime Regs Could Make More than 4.5 Million Currently-Exempt Workers Eligible for Overtime

DOL


The Department of Labor (DOL) has issued a proposed rule that it says would allow 4.6 million "white collar" workers, who are currently exempt from receiving overtime, to qualify for overtime within the first year of the rule's implementation [DOL Wage and Hour Division (WHD) website, Notice of Proposed Rulemaking: Overtime; WHD proposed rule, Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees, 29 CFR Part 541, RIN 1235-AA11]. 
UNEMPLOYMENT NEWS FROM AROUND THE NATION
THOMSON RUETERS

New Hampshire 

A spokesperson for the New Hampshire Department of Employment Security (DES) has told RIA that unemployment tax rates for experienced employers will continue to range from 0.1% to 7.0% in the July 1, 2015 to June 30, 2016 fiscal year before consideration of surcharges. There are no changes to the surcharge rates in the third quarter of 2015 (July 1 to September 30). Positive account employers and new employers will continue to see their unemployment tax rates reduced by 0.5% as a result of the balance in the state trust fund. The inverse rate surcharge on negative rated employers will remain at 1.0%. The new employer rate will remain at 2.2% in the third quarter after consideration of the 0.5% fund balance reduction [New Hampshire Employment Security website, Tax Rate Chart].


Vermont 

A spokesperson for the Vermont Department of Labor (DOL) has told RIA that unemployment tax rates for experienced employers continue to be determined under Schedule V from July 1, 2015 to June 30, 2016 (fiscal year 2016). Rates range between 1.3% and 8.4%. Most new employers pay 1.0%; however, unemployment tax rates for new out-of-state corporations with the following North American Industry Classification System (NAICS) codes are as follows: (1) NAICS code 236 (Construction Building) - 5.5%; (2) NAICS code 237 (Heavy/Civil Engineering Construction) - 6.7%; and (3) NAICS code 238 (Specialty Trade Contractors) - 6.2%.


 
Washington 

The Washington Employment Security Department (ESD) has announced that the taxable wage base for unemployment tax purposes will increase from $42,100 to $44,000 in 2016. Weekly unemployment benefits range from $158 to $664, beginning on July 5, 2015. Weekly unemployment benefits, prior to July 5, range from $151 to $637 [ESD News Release, "Washington's average wage grows by 4.2 percent in 2014," 6/24/15].


Texas 

New legislation allows a professional employer organization (PEO), in the calendar year during which an employee becomes a covered employee of the PEO, to apply any wages toward the taxable wage base limit that are paid to an employee by: (1) the client of the PEO, or (2) another PEO that had a prior agreement with the client. The bill takes effect on Sept. 1, 2015, and applies to any employment services rendered after Dec. 31, 2015 [ L. 2015, H3150].

 

Maryland 

The Maryland Department of Labor, Licensing and Regulation (DLLR) will be requiring all employers to electronically file their quarterly unemployment tax and wage reports, beginning with first quarter 2016 reports. Employers with up to 5,000 employees are encouraged to use the state's Web Tax application. Payroll providers and large employers with more than 5,000 employees may file their tax and wage reports using file transfer protocol (FTP). This process will eliminate the mailing of magnetic media (CDs and cartridges) that includes detail wage information [DLLR website, New Procedures for Employer Contribution Reports - Unemployment Insurance Contributions, 6/10/15].

 

Maine

New legislation, effective 90 days from the end of the current legislative session (scheduled for June 17th), allows: (1) a new employer that acquires the entire business of a predecessor employer to use either the experience rate of the predecessor employer for payrolls, unemployment tax contributions, and benefits, or the assigned state average contribution rate, whichever is lower; (2) an existing employer with an established experience rate that acquires the entire business of a predecessor employer to either blend the experience rate of the predecessor employer for payrolls, unemployment tax contributions, and benefits with the successor's established experience rate to form a new rate, or to retain the established experience rate of the successor, whichever is lower. This rule applies to the assignment of 
unemployment tax rates and transfers of experience in successor purchases when there is substantially no common ownership, management, or control between the purchaser and predecessor employer [L. 2015, H477].

 

Connecticut

A spokesperson for the Connecticut Department of Labor has told RIA that the 2015 special assessment rate employers pay to cover the interest due on the state's federal unemployment loan is projected to be 0.0002, or $0.20 per thousand dollars of taxable payroll. This equates to about $3 per full-time employee. Billing is planned for August 1, with an August 31 payment deadline.

  
Contact:
Greg Keeton
[email protected]                                                  800.928.5750

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