While many are putting the finishing touches on filing personal and corporate taxes, unemployment insurance managers have been working on their UI tax rates all year long.
Those who manage business unemployment insurance claims don’t have the luxury of breathing a sigh of relief on April 15. Managing UI tax rates is an ongoing process, but there are some things you can do to cut down on your UI costs and your stress level.
Pay Extra Taxes
Make voluntary contributions to your reserve account. This may seem counterintuitive, but your company’s unemployment tax rate generally depends on the status of your reserve balance. A voluntary contribution to boost your reserve balance could result in a lower tax rate and the savings might exceed the amount of the extra contribution.
Audit Your Claims and Protests
Review your claims from the previous year and analyze ones you should have protested, the protests you should have won and credits you did not receive. Use that information to improve your processes and gain the insight you need to win unemployment hearings.
Do Your Homework
If you’re planning to expand your business or purchase a company, look into the UI tax rate for that state. Don’t fall victim to surprises on the UI cost side of the expansion or purchase. Doing your homework ahead of time can save you a major headache down the road.
Review Your Process
Analyze your policies and use them to improve your processes. Regularly reviewing your process will not only help you identify areas of loss, but it will also allow you to capitalize on opportunities.
Use UI Cost Management Software
Cost management software can reduce costs for businesses of any size. Unemployment Tracker is a cloud-based software that helps you identify claims that should not be paid, effectively protest them, identify credits you have earned and catch costly errors.
Unemployment Tracker can help you lower your company’s UI tax rate and reduce costs all year long. Contact us today.