Unemployment taxes are expected to rise in 2021 for many states. Some states are estimating staggering increases of up to 600%, and these increases won’t be limited to businesses who have experience laying off employees. They’ll likely be socialized across the board. With changes in the system, huge tax increases, and an uncertain future, now is the time to consider finding a partner who can navigate these challenges with you.
The Value of Partners in Unemployment Insurance
Partners can add value in areas where they have in-depth knowledge and experience, which is why it’s important to choose one you trust. As it relates to human resources and unemployment insurance, here are a few things to consider when choosing the best one:
- Risk Transfer: Almost all employers experienced a season of higher-than-normal unemployment this year. Self-insured tribal employers who didn’t have the right partner ended up reimbursing the state for all claims. Those who were under the state system were protected but now face huge unemployment tax increases in the coming years. Finding a solution that helps transfer some of the risk from your organization is a better option that eliminates significant tax increases and unexpected out of pocket reimbursements.
- Claims Administration: Are your HR representatives spending a significant portion of their time processing claims instead of focusing on the needs of the employees and organization? Find someone who will do the tedious job of claims administration so your HR representatives can focus on what matters most– your employees.
- Audit and Recovery: This is the most ignored step in the unemployment administrative process, but it’s one of the most important. Finding a partner who will audit claims for accuracy and recover funds is a direct savings to your bottom line.
- Risk Assessment: Partnering with someone who’s objective and holistic in their approach helps to identify areas of risk that might be overlooked. The right partner will work with your organization to close the gaps resulting in reduced risk and cost savings.
- Strategic Hiring: Reducing unemployment risk begins with hiring the right employees – and hiring goes beyond networking and impressive resumes. The science of psychology combined with the latest technology advancements and a carefully crafted hiring strategy can help you find the best candidate for any job. Finding a partner who can assist with all three can make the difference between a successful hire or a costly one.
- Training: Comprehensive online training that’s available 24/7 helps provide employees instant access to what they need without waiting for the next live training. It also allows your HR representatives to focus on the critical trainings that only they can deliver.
Timing is Everything
As of October 2020, many states are starting to release huge tax rate hikes for employers. Oklahoma estimates that there will be a 60-70% increase, Massachusetts estimates a 60% increase, and Washington estimates a 400-600% increase. The decision that you’re making for unemployment insurance in 2021 is here. Don’t leave your organization on the hook for state fund bailout repayments and surcharges over the next several years. Contact us today to learn more about Tribal UI Assured.