A high unemployment rate can be costly to an employer. This Presentation goes over a few important points that employers should know in order to control their unemployment rate.

1. Unemployment Insurance What you need to know

2. Background

3. What is UI? The UI program is a federal/state partnership that provides temporary financial assistance to eligible unemployed workers. Great Program! in February for adult men (8.1 percent), adult women (6.7 percent), whites (7.3 percent), blacks (13.4 percent), and Hispanics (10.9 percent). The jobless rate for teenagers was little changed at 21.6 percent Utah currently has almost 44,000 unemployed workers Last year, during this time, only about 16,500 unemployed workers UT rate 5%

4. What is UI? Established as part of the Social Security Act of 1935 The original intention was good… to help employees pay their bills between jobs Assumption then - Short term benefit – in the Great Depression, employees would seek another job immediately Reality Today - Employees consider this “their money” and many try to receive benefits for as long as they can Don’t realize Employer is paying 100% SUTA Tax is the second highest employer-mandated tax and is the only employer tax that can be controlled State Offices are inclined to side with the employee

5. Employee Side of UI Apply for UI Benefits at jobs.utah.gov Eligibility – Process Available to accept full-time work Fill out weekly reports Weekly Benefit amount Max $444 Max $11,544 for 26 weeks

6. Employer Side of UI Employee files claim (UT 606) Contest or non-contest (time sensitive) Decision- appeal (time sensitive)

7. Utah Claim

8. Contesting a claim Voluntary Quit Discharged Culpabilty: Work record of incidents Knowledge: Must have know what was expected Control: Within employee’s control Layoff & reduction in hours

9. Appeal Decision & Hearing Appealing a decision time sensitive Any new evidence Hearing Hearing procedure Witnesses

10. Employee Tax Review

11. Employer Tax Review FICA - 6.2% for social security and 1.45% for Medicare.

12. Employer Tax Review Employer matches employee FICA tax The FUTA rate is 6.2 %, but you can take a credit of up to 5.4% for SUTA taxes that you pay. $7,000 wage base SUTA Wage Base Utah $27,800 Colorado $10,000 Arizona $7,000 Washington $35,700 (highest)

13. Employer Rates

14. Employer Rates Formula for rates Benefit Ratio X Reserve Factor + Social Costs = Rate Payout – Quaterly Charges State errors Claims now are impacting future rates Last 4 of the 5 quarters

15. Any Questions?