HR & Benefits News: Stop Unemployment Taxes From Eating Your Profits
Independent grocers and other businesses with high worker turnover often face much higher unemployment costs than other industries. Taking steps to proactively manage your tax rate for SUI (State Unemployment Insurance) can help you control unemployment costs. For example, a single unemployment claim can increase an employer’s SUI tax rate for the next three years. For many grocers, it’s imperative they contest questionable and ineligible state unemployment claims.
SUI was designed to provide limited financial assistance to employees that have lost their job due to no fault of their own. But we see many workers who have either quit their jobs or been terminated for cause file a claim for unemployment benefits. If the employer does not have the appropriate process in place to identify and contest claims like these, they slide right on through the system. The unemployment claims are automatically paid, putting the employer at risk for a significant increase in their SUI costs.