Both claimants and employers can commit unemployment insurance fraud to the detriment of their specific State’s unemployment insurance program. Claimant fraud can occur in several different ways including submitting false information and not reporting wages among other things. Employers can commit UI fraud by taking specific actions to reduce their UI tax liability. Additionally, individuals
On April 2nd 2020 the U.S. Department of Labor published the Unemployment Insurance Program Letter 14-20, outlining the CARES act. Information regarding the Federal Pandemic Unemployment Compensation (FPUC) program and Pandemic Unemployment Assistance (PUA) is included in the letter. This may be a useful resource for employers to have all the relevant CARES act information
Secretary of Labor Eugene Scala has published this statement on unemployment insurance claims: “This large increase in unemployment claims was not unexpected, and results from the recognition by Americans across the country that we have had to temporarily halt certain activities in order to defeat the coronavirus. The hard impact of this on American workers
The National Bureau of Economic Research published an article titled “Analyzing the Aftermath of a Compensation Reduction” exploring reasons why employers are more likely to lay off workers than reduce their compensation. This inclination to lay off workers instead of reducing compensation is referred to as “pay rigidity”. The authors of the article establish two
A new rule was implemented by the U.S. Department of Labor regarding overtime pay on January 1, 2020. After the rule change, 1.3 million more American workers are eligible for overtime pay. The earnings threshold that exempt certain employees from the Fair Labor Standards Act’s has been raised to $684 per week or $35,568 per
Over the past 14 years, we have experienced changes in technology and legislation, but our customer service focused approach has remained the same. We are thankful for our team of industry veterans and the wonderful customer base as it has grown over the years. As an unemployment claims management industry leader, we are forward thinking
Pennsylvania Governor Tom Wolf announced that there will be a reduction in unemployment tax rates saving businesses an estimated $552 million this year. Effective January 1st, 2020, the 1.1% unemployment tax rate factor has been eliminated, resulting in the lowest unemployment compensation tax rate since 1979. In 2012, Pennsylvania’s federal loans for unemployment insurance were
Currently, 27 states and jurisdictions have updated their taxable wage base for 2020. 15 jurisdictions have changed their minimum unemployment tax rate, and 15 changed their maximum unemployment tax rate. The taxable wage base represents how much of an employee’s yearly earned income is taxable at the employer’s unemployment tax rate. For instance, if an
According to the US Department of Labor, the average unemployment tax cost per employee has decreased six years running. Due to increased claims during the great recession, the average unemployment tax cost per employee rose to $486 in 2012. Since 2012, the unemployment cost per employee has been decreasing each year and was $293 for