Help Stop Higher Premium Rates
Prevent Improper Payment of Unemployment Insurance (UI) Benefits
What exactly are “improper” payments?
Improper payment of UI benefits means that a claim for benefits was paid in error. An improper payment of benefits can result when the claimant or employer provides inaccurate information to the state UI office, or when information such as the current employment status of a claimant is not received by the state UI office in a timely manner.
The Costs and Consequences of Non-Compliance
Companies that fail to comply with state and federal UI requirements face a number of preventable costs and consequences, including:
- Lost revenue paid to ineligible claimants
- Increases in employer UI premiums
- Possible fines and penalties
What can you do to help prevent improper UI payments?
Be an active partner! Help reduce employer costs by taking three critical steps:
- Report all hiring to the State Directory of New Hires by the due date. Timely reporting helps prevent payment of ineligible UI claims after an individual has returned to work.
- Respond promptly to any Request for Verification of Weekly Earnings that you receive. A prompt response will help prevent improper payment of UI benefits.
- Provide complete and accurate employee separation information. Costly appeals and overpayments are easily avoided by providing separation information to help determine claimants’ eligibility for benefits.