Unlike other human resource management issues, unemployment insurance
(UI) management issues have a direct impact on an organization's tax
liability, and since taxes reduce profitability, on its bottom line.
Unlike other payroll taxes however, UI taxes are experience-rated and
represent a controllable expense. Thus, an organization's UI
experience, influenced by its success in managing turnover, separations,
and chargeable UI claims, provides an objective measure of human
resource management effectiveness.
This interrelationship between human resource management and financial
management stems from the unique nature of the nation's UI program. The
UI program is a joint federal-state partnership under which benefits in
the form of a temporary, partial wage replacement are provided to
unemployed workers who have lost their jobs through no fault of their
own. The program attempts to draw a relationship between benefit
entitlement and wages earned, and between an employer's benefits
liability and the amount of wages paid by that employer. Within broad
federal guidelines, each state is allowed to determine its taxing
methods and benefits program.
The UI program is financed by two employer-paid UI taxes: A flat-rated
federal tax and an experience-rated state tax.
NOTE: Governmental agencies and certain nonprofits are exempt from the
federal UI tax. They may also elect to reimburse the state
dollar-for-dollar for the UI benefits collected by their separated
employees in lieu of paying the state's experience-rated tax.
Cost control of the federal UI tax is achieved through the use of
financial management techniques. Cost control of state UI taxes is
achieved through a combination of financial and human resource
management activities. Cost control of an individual employer's UI
taxes and liability is achieved by stabilizing employment, by taking
advantage of tax saving provisions in the law, by using effective
hiring, employment, and firing procedures, by training supervisors on
proper UI management, and by implementing effective UI claims-hearing
administration and management reporting systems.
Through effective UI cost management, organizations can control their UI
tax liability and have positive impact on their financial results.
Why should you Attend:
While 2017 state UI tax rates are lower than they were during the
recession, many employers still have significant liabilities.
UI tax liabilities are the most obvious risk created by employee
separations and unemployment insurance claims. Unfortunately,
unemployment insurance claims also increasing organizations exposure to
other potential liabilities: from wage and hour violations for
misclassifying independent contractors to providing plaintiffs with
discovery opportunities in other employment litigation settings.
Effective management of your organization's unemployment insurance
experience can provide you with the opportunity to improve your talent
management results, improve your hiring and onboarding processes,
enhance your performance management and discipline procedures, and
reduce your exposure to discrimination and wrongful discharge claims.
Effective UI management allows your organization to use UI metrics to
assess human capital risks, measure supervisor and manager performance,
more accurately allocate resources, and have a positive impact on the
This webinar provides an update on federal and state UI issues,
discusses 2016-2017 state tax liabilities, assesses the risks and costs
associated with UI taxes and benefits, and discusses effective UI tax
management and cost control techniques.
Areas Covered in the Session:
- Gain an understanding of key unemployment insurance issues
- Discuss the strategic issues of employment stabilization and employee separation management
- Learn to identify and assess the risks associated with the federal-state UI program
- Discuss the financial implications of UI liabilities
- Learn how sound HR management practices reduce an organization's exposure to UI liabilities and costs
- Identify and use UI Key Performance Indicators (KPIs)
Who Will Benefit:
- HR Professionals
- Payroll Managers
- UI Specialists
- Operations Managers
- Risk Managers
- External and Internal Auditors
HR-business issues and unemployment insurance.