According to a 2015 report by Equifax relating to unemployment insurance, 11.13 percent of the total benefit payments for those unemployed were improper, meaning recipients were overpaid. While this doesn’t seem like a large chunk, it equates to $4.15 billion. Because of this, unemployment insurance integrity is essential.
The Trade Adjustment Assistance Extension Act (TAAEA) of 2011
The recession in 2009 caused unemployment rates to skyrocket and the reserves to pay benefits to quickly deplete. Understanding overpayment contributed to this loss of savings, President Obama signed the Unemployment Insurance Integrity Act as part of the TAAEA in 2011.
This means companies are responsible for meeting the proper requirements and reporting in an effort to minimize overpayment. Fortunately, the recession peaked in 2009 and 2010 and by the end of 2011, revenues once again surpassed benefits paid, allowing accounts to equal out.
What the Unemployment Insurance Integrity Act Means for You
Even with everything leveling out in the last six years, federal agencies are dedicated to making sure these kinds of issues don’t arise again. One of the main focuses is putting the pressure on employers through the state to maintain the integrity of UI.
You Need to Follow Up No Matter What
In the past, employers would only respond to state inquiries about a former employee applying for UI if they wished to contest the claim. Now, you are required to confirm with the state agencies even if it’s just to say you’re aware the worker is filing.
You Need to Respond on Time
Failing to respond either way to the state agencies in time is highly discouraged and not acceptable.
Most Importantly, You Will Be Punished for Failing to Respond
Why this matters is the repercussions it can have on your company. When you are late in responding, or elect to not respond at all, the state agencies will place penalties against you. This means your taxes may increase, potentially causing you to pay more into the fund each year or there will be additional fines levied against you, depending on the frequency of your delinquency.
Stay Up-to-Date With Unemployment Tracker
Considering the Unemployment Insurance Integrity Act, you don’t want to fall behind in your communications with state unemployment agencies. It can be a lot to balance, but we’re here to make the management process simpler. Our solutions meet your needs, whatever they are. We provide a customizable interface giving you the level of control you want, and we’re here to help whenever you need us. Experience the power of Unemployment Tracker and schedule a live demo today!