You should not wait until tax season rolls around to be concerned about your unemployment tax rate. You can face budgetary surprises, which leaves you scrambling when you fail to anticipate changes. Many companies consider it a cost of doing business and don’t think they have control because UI is one of the highest employer taxes. Unemployment insurance tax is a controllable tax and you can significantly reduce your rate when you understand the law and put in some time. With this in mind, we at Mark Dicus & Company would like to take the opportunity to discuss how you can reduce your unemployment insurance tax rate.
Work Sharing Program
Layoffs become more common when times become tough. Consider a state work-sharing program as apposed to immediately letting workers go and leaving them to qualify for unemployment insurance. Employees can stay on at reduced hours with the option to prorate unemployment benefits with this program.
Importance of Maintaining Accurate & Objective Employee Records
Accurate records are your best support in the event you want to protest the awarding of benefits, your tax rate, or your liability. You will want to make sure you have detailed records explaining the incidents to use in your case should you plan to contest a claim because an employee was let go due to misconduct for instance.
Employment Verification & Other Requests
When you miss a deadline to answer certain requests for information, unnecessary charges can be assessed. Missing the appeal date can lead you to paying an employee who was not qualified should you want to protest a claim. To make certain employees are claiming the correct wages you want to look into the claims as well. For your company each week, their dishonesty can cost you thousands of dollars in overcharges. From the state unemployment insurance agency, you can reconcile the benefit charges from the statements you receive. It is up to you to catch those mistakes and protest those charges since overpayments and other mistakes by the state are common.
Do not use the words “terminated” or “discharged” to describe their status in the event someone is a voluntary termination because they stopped showing up to work. Instead of leaving the company themselves, those words can imply you let them go.
State Unemployment Insurance Tax Laws
Expanding your company is not a decision made in a single day. Including the unemployment insurance tax rate of the state you are considering, there are many areas of interest to deliberate on. Before making a decision, be sure to do your research about its tax rates.
Tax Preparation, Filing, Resolution & More in Summerlin, North LV, Henderson, Lone Mountain Village & Greater Las Vegas, Nevada
To help you better navigate the unemployment insurance rates and to help you reduce costs, call Mark Dicus & Company and let our qualified experts assist you. We are readily available for consultations, accounting, and tax services to help your business become a success.