If a worker quits his or her job or they got terminated, it does not necessarily mean that their benefits from your company will automatically end as well. Sometimes, former employees can still claim benefits even when they are no longer a part of the company. You have to be very careful with unemployment benefit claims because this will affect your business, especially your tax.
Unemployment benefit claims are important matters that should be looked upon by company owners and managers. Here are two main reasons why you should prevent improper claims from being paid:
- A previous employee who successfully collects unemployment benefits from your company directly affects your state unemployment tax rate. It increases your tax and this is unwanted by any businessman.
- You do not want lawsuits filed against your company and rather have out of court settlements, or if you already have a lawsuit filed against you, you have to find a way to win against your ex-employee.
What is Unemployment System?
There are two main objectives of the unemployment insurance system and these are:
- Ex-employees laid off from work not caused by any misdoings on their part entitle them to have a weekly check from the company they previously worked for.
- Employers who have minimal workforce turnover is rewarded by the government because this provides economic stability.
Unemployment benefit claims are funded through federal and state unemployment taxes that are paid by employers. To be able to facilitate and promote the objectives mentioned above, each state has a system that reviews claimed benefits by unemployed workers.
How does an Ex-Employee Qualify for Benefits?
- An employee must have met the minimum period of work experience depending on the requirements of the state where he or she is in. Every employer must know the minimum period of time covered and should set a probationary period less than what is required to avoid improper claims from being paid.
- Part timers or self-employed workers are no longer eligible to have unemployment benefits. They should be truly unemployed to be able to receive the claims.
- All benefits should be claimed at the local unemployment office. Unemployed people should immediately respond to requests, letters or appearances summoned by the government. Otherwise, all benefits will be cut off.
- Most states require that unemployed people should start looking for another job. They should frequently update the employment office regarding their applications, interviews, etc. There will be times when the employment office will help the jobless find work and openings. He must submit himself and cooperate with the office.
Factors for Disqualification
- The worker refused suitable work.
- The reason behind the worker being laid off from his previous work was due to misconduct. Different companies have different grounds for termination, such as violations of rules and regulations.
- The worker left his or her job voluntarily.
- The worker is unemployed due to labor dispute.
- The worker is already receiving workers compensation, such as pension, Social Security, etc.
- The worker has lied in order to increase his or he benefit claims.
How to Defend Unemployment Claims?
- Be honest. Get your facts straight and report the facts, do not leave out or falsify any information.
- Respond to summons by attending hearings, be it formal or informal. Show that you are interested in getting things right. This also gives you the chance to explain and show your side.
- Immediately report new facts or findings to the state, especially information that is crucial to the claim, such as disqualification factors.
- File an appeal when you lose. Losing does not mean that the case ended. You can always file for an appeal, especially if you think that the claim is really improper.