All posts by Wayne Rottger
Employers in California, Connecticut and New York should be aware of how a Benefit Cost Rate could increase their FUTA Tax for 2025.
President Biden declared a major disaster in California due to wildfires, a crucial step in providing much-needed federal assistance to support local recovery efforts.
FUTA Credit Reductions can eliminate an employer's 5.4% FUTA tax rate credit if your state has an outstanding trust fund balance.
The Kansas Department of Labor (KSDOL), Division of Unemployment Insurance recently posted a notification on its site informing employers of an upcoming technology enhancement. The current Employer Services portal will be made unavailable starting Wednesday, November 13, 2024, at 5 pm central time. It will reopen Tuesday, November 19, 2024, at 8 am central time. The Kansas Unemployment Insurance Technology Enhancement Project The Unemployment Insurance Technology Enhancement (UITE) project is a multi-year initiative which focuses on delivering a transformational unemployment insurance experience to businesses and workers of Kansas. In a press release, Governor Laura Kelly stated that access to unemployment benefits has depended on an outdated computer system that caused problems during the Great Recession and pandemic for residents. The purpose of the enhancement project is to provide a more seamless experience to Kansas employers and the workforce. The new system is intended to provide a number of improvements: Streamlining operations through improved workflow efficiency and adaptability, data management, and collaborations with other agencies; Enhancing user experience through adoption of advanced customer relationship[ management systems and personalized communication channels, more self-service options, and improved mobile-friendly access for claimants; and Upgrading data security and compliance with enhanced cybersecurity measures to safeguard data and ensure regulatory compliance. IMPORTANT INFORMATION FOR EMPLOYERS On November 19, 2024, there will be a new online account setup functionality available to employers. All active employers are required to establish a username and password to access the new portal. If you had login credentials in the prior portal, they can be reused in the new. They will not automatically be carried forward, however. Employers will maintain their current state unemployment insurance account number, but going forward, it will be in a 10-digit format, with on zero (0) at the beginning and three zeroes (000) at the end. Even if an employer works with a Third-Party Administrator (TPA), KS DOL recommends establishing an online account. This will ensure constant access to correspondence or account information. Employers may have multiple authorized users as part of the Unemployment Services for Employers set up process. The timeline below was included in the announcement on the KS DOL, Division of Unemployment Insurance site. It represents an overview of the transition and when to expect an impact on workflow. Please make certain any staff who currently utilizes the state’s portal is aware of these changes and that new usernames are established on the appropriate timeframe. For additional information about this change, please visit the KSDOL site.
Wayne Rottger recaps the biggest issues concerning unemployment insurance covered at this year's NASWA's Annual Summit.
Following a disaster, there are employer next steps to best manage federal aid including disaster unemployment assistance.
As a business owner, you know the federal unemployment tax rate affects costs. Learn how we can help you navigate your unemployment management needs.
Explore the intricate world of unemployment funding and gain a detailed understanding of who pays for it and its underlying financial dynamics.
Wayne Rottger recaps the biggest updates from this year's UWC conference including fraud news, legislative changes and more.
Read this employers guide to learn how to win your unemployment appeal hearing and maintain an accurate state tax liability.
Understand termination letter and separation notice requirements for each applicable U.S. state with this helpful guide to stay compliant.
We have seen approximately 120 different Bills related to unemployment insurance affecting claimants and their ability to collect benefits.
Here's what to expect for annual unemployment tax rate notices in New Hampshire, New Jersey, Tennessee and Vermont.
Manage poor performance and misconduct to lower unemployment costs. Discover the best practices to ensure compliance and lower expenses.
Unemployment benefit fraud is harmful for both employers and employees, but there are solutions available to reduce the risk.
Master employee offboarding, streamline transitions, ensure compliance and optimize talent management. Unlock success with an effective offboarding process.
As federal and state legislative sessions unfold, employers find themselves navigating a dynamic landscape of potential changes to unemployment taxes. This year, like many before it, has seen a flurry of activity with over 100 bills in various stages of consideration since January 1, 2024. Addressing Trust Balances and Solvency A recurring theme in these bills is the allocation of funds for state unemployment trust balances and programs. Across 10 states, legislation is under discussion proposing appropriations ranging from $2 million to nearly $90 million for bolstering respective unemployment insurance programs. This is particularly crucial for states with precarious trust fund balances that may not withstand economic downturns. According to the 2023 State Unemployment Insurance Solvency Report by the United States Department of Labor, only 16 states met the recommended minimum solvency standard by the end of 2023, unchanged from the previous year. Prior to the pandemic, this number stood at 31 states highlighting the significant impact of the pandemic. The risk of insolvency looms large for states ill-prepared to handle increased claims during recessions. Facing potential insolvency, states may resort to requesting advances via Title XII loans from the federal government. However, this solution comes with the obligation of repayment as evidenced by the experience of two states and one territory mentioned on the 2023 Federal Form 940, all of which lost a portion of their FUTA credit due to outstanding loans. Other Hot Topics: Labor Disputes, Weekly Benefit Amounts and Fraud The payment of benefits during labor disputes is another pertinent topic in recent legislative agendas. With labor disputes increasingly making headlines and disrupting economies, legislators in 10 states are deliberating on the current disqualification of unemployment benefits for claimants involved in such disputes. If proposed legislation passes, employees involved in labor disputes would be eligible to receive unemployment benefits. While this may not directly impact all employers, it could significantly affect tax account funds for those embroiled in labor conflicts. Legislators are also addressing claimant weekly benefit amounts and work search requirements to ensure accountability and prevent misuse of benefits. This includes initiatives to verify claimants' efforts in seeking employment such as following through with interviews and maintaining communication with prospective employers. Data integrity and fraud prevention remain key areas of focus. With fraud reaching alarming levels during the pandemic, states are taking proactive measures, aided by grants from the American Rescue Plan Act, to modernize their unemployment platforms and enhance detection capabilities. Several bills passed both state-level houses and senates and are eligible to be sent to respective governors for signature. Below are those states along with a synopsis and link to the bill: Colorado – HB 1189 This measure appropriates $76,527,050 for program costs related to unemployment insurance. New Mexico – HB 2 This measure appropriates $13,846,600 for unemployment insurance to administer an array of demand-driven workforce development services to prepare New Mexicans to meet the needs of businesses. These measures would more-so benefit claimants and their ability to file claims quickly and efficiently. Utah – HB 170 This measure addresses multiple issues: Claimant would be disqualified from receiving unemployment benefits if they fail to appear without good cause for a scheduled interview for suitable work. Claimant’s failure to accept within two days after the date the offer was sent, an offer of suitable work from an employer or the employment office as failure to accept suitable work. Develop and maintain a website for employers to access information and report potential fraud related to unemployment insurance claims. Virginia – SB 542 This measure makes an amendment to the VA Unemployment Compensation Act regarding labor dispute disqualification. It provides that a lockout by an employer will not constitute a labor dispute and locked out employees, who are otherwise eligible, will receive unemployment benefits unless one of the following occurs: Recognized or certified collective bargaining representative of the locked out employees refuses to meet with the employer under reasonable conditions to discuss issues giving rise to the lockout. There is a final adjudication under the federal National Labor Relations ACT (NLRA) that such representative refused to bargain with the employer in good faith. The lockout is the direct result of such representative’s violation of an existing collective bargaining agreement. Effective July 1 after enactment. In the ever-evolving landscape of unemployment law, staying abreast of statutory changes is essential for managing costs effectively. Stay tuned for more insights on this and other pertinent topics.
Changes to unemployment tax and benefits in Connecticut may affect employers as the state seeks to address its trust fund solvency.