The process of processing unemployment for former employees can be a daunting task, here is some information to explain the process

It is inevitable that employers will receive an unemployment claim from at least a few former employees.  The first documents you will receive are from the Colorado Department of Labor and Employment, are a “Request for Job-Separation Information” and a “Notice of Unemployment Insurance Claim, Wages Reported, and Potential Charges.”

The “Notice of Unemployment Insurance Claim…” document is usually a white colored document that lists the quarterly earnings for the employee who is filing for unemployment, and all the employer needs to do is verify the earnings are correct.

The Request for Job Separation Information is usually a yellow colored document and is used as employment verification, as well as a statement to why the employee is no longer working for the employer. It is the employers’ duty to make sure this form is filled out correctly. The form will ask the former employee’s date of hire, the last day worked, the rate of pay, and the reason why the employee is no longer working. The form will also ask payroll questions, such as, did the claimant receive wages in lieu of notice, was vacation paid out upon termination, was there a severance allowance?

On the back side of the form is more elaboration to the question of why the employee is no longer working. If the employers marks that the employee quit or was discharged, the back side of the document is used to explain the incident that led to the employee’s resignation or discharge.

The most important section of the Job Separation Information document is the date in the upper right hand corner that states when the form must be received by the Colorado Department of Labor and Employment. Employers can fax or mail the document to the department, but if they turn it in after the specified date, the information will be ignored unless the employer can provide a valid reason of why the form was not turned in on time.

After the Request for Job-Separation Information document is turned in to the department, a deputy of the Division of Employment and Training will make a decision to either deny or grant an award of unemployment benefits to the claimant.

After submitting the Request for Job-Separation Information, what comes next?

After turning in the Request for Job-Separation Information document to the Colorado Department of Labor, you will soon receive a notice of decision document.

The notice of Decision states whether the claimant is entitled to benefits. In the upper right hand corner- the document will state whether the employer is chargeable or nonchargeable. If the employer is Chargeable, it means the Colorado Department of Labor deputy finds that the claimant is not responsible for the separation and entitled to collect benefits. If the employer is found nonchargeable, the deputy has determined that the claimant is responsible for the separation and not entitled to collect benefits.

If you, the employer, is found Chargeable for unemployment benefits and disagree with this decision, you have the right to appeal the decision. On the back of the document, is an explanation of Appeal Rights. The document states that the notice of Decision is final unless a written appeal is received no later than 20 calendar days from the date when the decision was mailed (you can find that date on the front side of the document in the upper right hand corner). The document also asks for further information regarding the employee-employer information, including the claimant’s Social Security number, if the employer will be represented at the hearing by a lawyer, union-business agent, etc. You will also need to specify that it is the employer who is filing the appeal and write why you disagree with decision. Be as specific as you can.

The most important thing to keep in mind is the due date of the appeal. It is 20 calendar days, not business days, from when the decision was mailed, not from when you receive it.

After submitting the Request for Job-Separation Information, what comes next?

After turning in the Request for Job-Separation Information document to the Colorado Department of Labor, you will soon receive a notice of decision document.

The notice of Decision states whether the claimant is entitled to benefits. In the upper right hand corner- the document will state whether the employer is chargeable or nonchargeable. If the employer is Chargeable, it means the Colorado Department of Labor deputy finds that the claimant is not responsible for the separation and entitled to collect benefits. If the employer is found nonchargeable, the deputy has determined that the claimant is responsible for the separation and not entitled to collect benefits.

If you, the employer, is found Chargeable for unemployment benefits and disagree with this decision, you have the right to appeal the decision. On the back of the document, is an explanation of Appeal Rights. The document states that the notice of Decision is final unless a written appeal is received no later than 20 calendar days from the date when the decision was mailed (you can find that date on the front side of the document in the upper right hand corner). The document also asks for further information regarding the employee-employer information, including the claimant’s Social Security number, if the employer will be represented at the hearing by a lawyer, union-business agent, etc. You will also need to specify that it is the employer who is filing the appeal and write why you disagree with decision. Be as specific as you can.

The most important thing to keep in mind is the due date of the appeal. It is 20 calendar days, not business days, from when the decision was mailed, not from when you receive it.

After submitting your appeal, you are almost on the way to the hearing- a few things to remember….

After turning in your appeal of the unemployment decision, you will receive a letter/packet from the Colorado Department of Labor and Employment. The first page of packet will give you the hearing information for Claimant and Employer. The information contains the date and time of the unemployment hearing. The claimant and employer have a choice to appear to the Hearing office location which is stated in the document, or can call the number given on the packet. The most important to remember when you get the hearing information packet is if you wish to present any evidence to the hearing officer pertaining to the termination- you must mail/fax those documents to both the officer and the claimant. If you do not, none of the documents you wish to use as evidence will be allowed if neither the claimant nor officer do not receive it.  Try to send the information a week before the scheduled hearing date so that the claimant and hearing officer have ample time to receive the documents.

Once you have sent the necessary documents, set a calendar reminder for the hearing, so you don’t forget. You’ve completed almost all the steps in the process, the next and final step is the appeal hearing.

Unemployment claims dip

The labor department reported that 322,000 people filled applications for unemployment claims last week. This is down 15,000 from the week before. Claims dropped for the second straight week surprising many analyst. This is the same trend seen in Colorado as employers are busy hiring once again. During the last week many StaffScapes clients have asked about hiring or have hired new employees in 2008. 

With low unemployment employers are finding it difficult to find the right employee. It may be wise to ask a few more probing questions when interviewing candidates. By having a set list of questions when interviewing you will be better able to compare answers among job applicants. For more details on interviewing or steps to take when interviewing contact StaffScapes

Controlling cost and optimizing resources with a PEO.

Is your business generating a small profit? Are human resources and benefits eating away at that profit? Insurance benefits are the one area that is increasing the most over the past few years.  Professional Employer Organizations remove the burden of employment and help small companies get a handle on ever increasing employee benefits and government compliance. A commonly overlooked cost are is when employers hire or have to fire an employee.

In today’s market place employers need to have certain controls in place to help maintain profits. With more people available to work then in the past few years employers need to make smart hiring and firing decision.  A simple way to increase the probability that you are hiring a good employee is to do reference checks and pre employment drug screening. Recent court rulings have stated that employers may give out more information to prospective employers than in the past. A PEO like StaffScapes can assist in the hiring process making it easier for employers to find the best employee.

The second area that PEO’s can help employers is when it is time to fire an employee. We all hate firing an employee but at times it must be done. Be sure the employee is treated with respect by setting consistent expectations for all employees. Establish a separation policy. Properly mange the separation by having a trained person assist on the separation along with the employees imitate supervisor. Conduct a exit interview to try and gather information that may give your business directions on improvements that need to be made. Lastly promptly handle all post separation details to insure the employee receives his or her last check, is notified of any continuing insurance coverage available, and any workers compensation benefits due if any.  A PEO will be able to help in the correct steps involved in hiring and firing employees.

The link below provides employers with information about the unemployment process. If not familiar or if you need further assistance contact StaffScapes today at 303.466.7864.

StaffScapes a full service PEO serving Colorado and the Rocky Mountain region.

See Also

• Unemployment Claims
  UI Claims process

PEO’s providing certainty in rough economic times.

With the recent uncertainty in the stock market, banks selling one after another and business struggling with increasing cost. It is tougher than ever for small and medium sized business to control cost. By partnering with a PEO you are joining many other business to take advantage of one workers compensation policy, unemployment account and many other employee benefit programs.  Contact StaffScapes to learn more about this value added service, your employees will Thank You!

Don’t miss your exit. Join one of Colorado’s oldest PEO’s providing service in Colorado and across the nation.

By signing up with StaffScapes before December 12, 2008 you will receive one free month of service. Our way of providing a economic stimulus package.

See Also

• StaffScapes.com
  Free Quote

The Bureau of Labor Statistics releases October 2008 employment numbers.

With unemployment on the rise and volatility in the economy, U.S. Secretary of Labor Elaine L. Chao issued a statement concerning the recent October employment situation report:

“Today’s report underscores the importance of restoring the health of our banking system and credit markets so that employers can rebound and create jobs. It will take time for the impact of the economic rescue package to be felt on the broader economy and the labor market.”

As posted by the Bureau of Labor Statistics on November 7, 2008, employment fell by 240,000 jobs.  This equates to an increase in the unemployment rate to 6.5 percent. It is reported that in October the job losses continued in manufacturing, construction and service provider industries. For more detail information view the October Employment Situation release at: http://www.bls.gov/news.release/empsit.toc.htm.

Jobless Claims still on the rise, exceeding expectations

The US is paying benefits to nearly five million people, who do not have jobs. Unemployed workers who are receiving benefits came to an all time high reaching up to five million at the beginning of February. Jobless claims linger well above the projections of 600,000 from the Federal Reserve. Marking the fourth consecutive week were those receiving benefits has been at a record high of 4.99 million and rising. The complexity people are having is not finding another job, which means benefits are forced to be offered longer. An additional 1.5 million people are receiving benefits under an extended unemployment compensation program that congress approved last year. This number added to the already increasing number of people receiving unemployment benefits reaches 6.54 million. New applications for unemployment are pouring in and total 627,000 in last week alone. This is more than economists expected. The claims also are the highest tally since October 1982 when the economy was emerging from a steep recession, even though the work force has almost doubled since then. More business are continuing to make layoffs and cut spending which is heightening concerns on the recession currently the longest in a quarter century. The Fed released a new economic forecast that reduced it current growth forecast for 2009. The forecast also increased the unemployment rate projections. The new forecast predicts unemployment to reach among 8.5% and 8.8% instead of the previous prediction of 7.6%. The President was in Denver this week to sign into law a stimulus program of $787 billion and then in Arizona for a $75 billion program for the mortgage foreclosures which is said to help the economy back from this recession.

Source: www.foxnews.com/politics/2009/02/19/jobless-claim-hit-time-high/

The economic stimulus package contains provisions affecting employers.

The American Recovery and Reinvestment Act of 2009, or simply stated stimulus package, will affect many aspects of employment over the next several years.  The stimulus package addresses employee benefits, taxable income, unemployment benefits and information privacy rights. Over the next several weeks, StaffScapes’ blogs will be written to explain in more details these items.  However, this blog will give a brief description of the affected programs. These changes include:

·        Potential subsidy for COBRA or state continuation of Health Insurance for laid-off workers.

·        Tax credit for 2009 and 2010, reducing Income Tax withholding or claimed on tax return

·        Increase non-taxable amount of mass transit and vanpool benefits

·        Unemployment had major revisions including: extended coverage period; increase maximum benefits; exclusion of a portion of benefits as taxable income; increasing reasons to award benefits

·        Changes to HIPAA electronic records retention and transmission as well as expanding definition of Business Associate and responsibilities

Now more than ever, small to medium sized businesses need to partner with experts in the employment industry.  StaffScapes, Inc., as a full service PEO (Professional Employer Organization), assists and guides our clients through the maze of employment rules, laws and regulations.  Contact us today, to learn more about how StaffScapes can help you weather this economic and regulatory storm. 

Stats of Unemployment from the Census Bureau

While reading daily about the jobless claims still rising I can across an article that opened my eyes about the number of claims that have been made. More than 651,000 jobs were cut in February. This added to the unemployment rate which is currently at 8.1%. Here are some stats available by the Census Bureau.

651,000 Jobs were cut in February. This number is larger than the populations of these cities:

*Baltimore
*Denver
*Seattle
*El Paso
*Washington, DC

12.5 million People are unemployed in the US. This number is more than:
*Women attending college
*Male scientist and engineers
*People watching ABC’s show “Lost” this season

12.5 million is also larger than the populations of all 45 states including:
*Ohio
*Pennsylvania
*Michigan
*Virginia

4.4 million jobs have been lost since the start of this recession December 2007. This is larger than the population of the entire San Francisco Bay Area.

2.6 million jobs have been lost in the past four months, which is about the number of senior citizens living in Florida.

8.6 million people have been forced to work part-time for economic reasons. This number is more than the population of New York City and more than the number of people who try to quit smoking every year.

As companies continue to eliminate jobs there is one sector that boosted its employment this last month and that is government.

Source: Unemployment by the numbers: How bad is it Hurting? Fox News.com/0,3566,506405,00.html

The IRS recently published information about the non-taxability of unemployment benefits.

The American Recovery and Reinvestment Act of 2009 (or Stimulus Bill) has given individuals that are collecting unemployment benefits in 2009, the ability to exclude the first $2,400 of these benefits. The exclusion applies to each individual separately even for married couples filing. This exclusion applies only to benefits received in 2009, so this will not reduce the taxable wages for the 2008 year form 1040 that most people are filing currently. Further information can be found posted at the IRS website at the following address: http://www.irs.gov/newsroom/article/0,,id=205633,00.html.

More than expected: Jobless claims still on the rise

Workers are still continuing to file claims for unemployment. Many economists have said the claims should start decreasing but the claims rose more than expected last week topping 6.1 million.  With claims continuing to pile in its clear the weak job market is not going to recover anytime soon. Some economists are said to believe that a decline in the number of jobless claims will suggest the recession will be ending. But we have yet to see a decline. “The Labor Department said Thursday that initial claims for unemployment compensation rose to a seasonally adjusted 640,000 up from a revised 613,000 the previous week. That was slightly above analysts’ expectations of 635,000” (Washington, 2009 News). The International Monetary Fund estimated that the global economy would have its first economy drop in more than six decades with a 1.3% drop, and they predict the US economy will have a drop of 2.8%. “The Obama administration is counting on its $787 billion stimulus package, enacted in February, to “save or create” 3.5 million jobs” (Washington, 2009 News).

Source: Foxnews.com/politics/2009/04/23/new-jobless-claims-rise-unespected-millions/, 2009 23 April, Washington News.

Employers in 3 states will be required to pay more in Federal Unemployment for 2010, with potentially an additional 21 states following suit in 2011. Employers with business in Michigan, Indiana and South Carolina will have additional taxes added to their 2010 Federal Unemployment Report 940. These states’ unemployment funds borrowed money from the federal unemployment fund and did not pay the loan back with in required time.

A state that borrows money from the federal account has until the end of the following year to pay back the loan in order to avoid additional FUTA taxes being charged to their employers. However, the state has until November 10th of the year the tax increase will take effect to pay back the loan and avoid the increase. This additional time to pay will make it hard for employers in the 21 additional states with potential loan repayment problems to know exactly how much their FUTA tax will be for the year. Employers will not know how much liability to book for the current year or may have to reserve amounts of cash, limiting investment and business development, not knowing if the tax is due until November or December of that year. For every year a loan remains unpaid the FUTA tax rate increases by 0.3%.

As of November, 2010, over $41 billion have been loaned to 31 states and the US Virgin Islands. Employers in 3 states are currently affected with a potential 21 being added for the 2011 tax year and an additional 7 for 2012. A list of the states that have borrowed funds with amounts and date the loan can be found here.

Please contact StaffScapes with any questions or to discuss further ramifications of the unemployment account fund status.

Back in March of this year, the Maine Unemployment Insurance Commission overturned a lower ruling and awarded unemployment benefits to an employee that was fired for illegally downloading 800 music files onto her work computer. The Portland Press Herald reported that after the employee was fired, she sought unemployment benefits and was initially denied. However, the Commission overturned the denial 3-0 stating, as the Press Herald reported, the claimant “made an isolated error in judgment when she downloaded the software on the company’s computer and that the action “does not constitute misconduct”.  

What? I must have a different definition of isolated. Illegally downloading 800 files would not constitute isolated in my world. Also, not only did the employer have to pay wages to the employee for this unproductive time, but this could also open up legal action taken against the employer for copyright infringement and media pirating.

The Press herald goes on to report that the Commission ruled that the employer’s code of conduct policy “was not imposed, enforced, or communicated in an equitable manner.”

So what can we learn form this extreme case? Make sure that your policies, including code of conduct, computer and/or electronic usage policies are well documented, communicated and enforced. Contact StaffScapes to review your current policies for proper creation and implementation.

The Department of Labor and Employment has submitted a draft proposed rule to establish fines associated with employee misclassification. If this rule is approved and enacted, an employer who willfully misclassified an employee as an independent contractor will be fined by the CDLE. The CDLE will fine first offenders 5% of each misclassified employees annual gross wages or $100, which ever is greater. Also, repeat offenders will be fined 25% of each misclassified employees annual gross wages or $500, whichever is greater. This is just the fine; employers should expect to pay the unemployment taxes on these misclassified employees as well as having the IRS and state revenue department being notified.

If you have questions concerning employee and independent contractor classifications feel free to contact your representative at StaffScapes to discuss further.

The proposed rule or amendment may be found here.