Employer paid unemployment insurance benefits, taxes and costs, once a nuisance, have increased dramatically in recent years. For some employers’ UI tax liabilities have increased by more than 300 percent and now have a significant impact the bottom line.
Higher UI tax liabilities are just most obvious risk created by employee separations and unemployment insurance claims. Unemployment insurance claims increasingly expose organizations to other potential liabilities: from wage and hour violations for misclassifying independent contractors to providing plaintiffs with discovery opportunities in other employment litigation.
Effective management of an organization’s unemployment insurance experience provides the organization with the opportunity to improve its talent management results, improve its hiring and on boarding processes, enhance its performance management and discipline procedures, and reduce its exposure to discrimination and wrongful discharge claims. Effective UI management allows organizations to use UI metrics to assess human capital risks, measure supervisor and manager performance, more accurately allocate resources, and have a positive impact on the bottom line.
Why Should You Attend
Unlike other human resource management issues, unemployment insurance (UI tax rate) management issues have a direct impact on an organization’s tax liability, and since taxes reduce profitability, on its bottom line. Unlike other payroll taxes however, UI taxes are experience-rated and represent a controllable expense. Thus, an organization’s UI experience, influenced by its success in managing turnover, separations, and chargeable UI claims, provides an objective measure of human resource management effectiveness.
This relationship between human resource management and financial management stems from the unique nature of the nation’s UI program. The UI program is a joint federal-state partnership under which benefits in the form of a temporary, partial wage replacement are provided to unemployed workers who have lost their jobs through no fault of their own. The program attempts to draw a relationship between benefit entitlement and wages earned, and between an employer’s benefits liability and the amount of wages paid by that employer.
For employers in virtually all states, they are taxed based on their experience in controlling separations and claims. The more UI claims paid, the higher the employers’ tax rates. Unfortunately, unemployment insurance taxes are just the beginning of employer liability. Employers are increasingly assessed with UI liability for individuals they treated as independent contractors. Additionally, unemployment insurance is increasingly becoming only the first step in assigning employer liability. UI claims are now often used to set the stage for wrongful discharge claims and other liabilities.
Areas Covered in this Webinar
This webinar provides an update on federal and state UI issues, assesses the risks and costs associated with UI taxes and benefits, and discusses effective UI tax management and cost control techniques.
Because the cost control of federal UI tax liabilities is primarily achieved through the use of financial management techniques, the webinar discusses critical aspects of the Federal Unemployment Insurance Tax Act (FUTA) and actions should be taken to control this liability.
The webinar next discusses the cost control measures employers should take of state UI taxes, including an assessment of a combination of financial and human resource management activities. The webinar reviews such critical UI cost control activities as:
Who Will Benefit
Ronald Adler is the president-CEO of Laurdan Associates, Inc., a veteran owned, human resource management consulting firm specializing in HR audits, employment practices liability risk management, HR metrics and benchmarking, strategic HR-business issues and unemployment insurance issues. Mr. Adler has more than 39 years of HR consulting experience working with U.S. and international firms, small businesses and non-profits, printers, insurance companies and brokers, and employer organizations.
Mr. Adler is an adjunct professor at Villanova University’s Graduate Program in Human Resources Development and teaches courses on HR auditing and HR management. Mr. Adler is also a certified instructor for the CPCU Society and conducts courses on employment practices liabilities.
Mr. Adler is a co-developer the Employment-Labor Law Audit™ (ELLA®), the nation’s leading HR auditing and employment practices liability risk assessment tool.
Mr. Adler serves on two national taskforces developing professional standards in human capital measurement and performance management.
Mr. Adler has assisted Congress and state legislatures develop employment and UI related legislation and has testified before the U.S. Senate Finance Committee on unemployment insurance and the U.S. Senate H.E.L.P. Committee on genetic discrimination in the workplace. Mr. Adler has also served as an expert witness in discrimination and negligent hiring cases.
Mr. Adler is a member of the Institute of Internal Auditors. Mr. Adler is also a member of the Society for Human Resource Management (SHRM), serves as an subject matter expert (SME) to SHRM on HR metrics, formerly served on SHRM’s Human Capital Measurement/HR Metrics Special Expertise Panel, SHRM’s white paper review panel, SHRM’s Outsourcing/Consultants’ Special Expertise Panel, and the National Employment Committee. Mr. Adler is a consulting expert on workplace issues to SHRM’s legislative staff, has contributed materials for The SHRM Academy and the SHRM Learning System, and has represented SHRM in meetings with the EEOC.View all trainings by this speaker