No matter what the size of your business, handling unemployment claims is daunting. A single claimant can cost your company quite a bit of money, especially considering that the average unemployment claimant collects about $330 a week in benefits. Plenty of businesses overpay when it comes to unemployment claims, too — yearly unemployment-related overpayments by American businesses come to about $17.5 billion.
Thankfully, outsourcing your unemployment claims administration can save you money and time. PEOs have the expertise and resources your business needs to successfully and efficiently deal with unemployment claims in the cheapest way possible. Let’s take a look at some of the benefits of outsourcing your unemployment claims administration process.
Put Your Unemployment Claims in the Hands of Professionals
As a business owner, you have enough on your mind without having to memorize all of your state’s unemployment regulations and procedures. A single HR employee might not be capable of handling your unemployment claims process all by him or herself, considering that he or she will also be juggling payroll, benefits, worker’s comp and more. What will you do if you lose your HR person for some reason? Bungling an unemployment claim could land you in some pretty hot water.
Unemployment claims administration is just one of many business administration processes you can outsource to a PEO. You’ll have all the benefits of a fully-staffed HR department at a fraction of the cost of a full annual salary and benefits for one or more HR employees. Even if you do have an HR person, working with a PEO can make it easier to give that person time off for vacation, maternity leave or FMLA leave.
Save Money on Unemployment Claims
When you’re running a business, every penny counts. So you don’t want yours to be one of those companies that spends 11.2 percent more than necessary on unemployment claims, do you?
When you outsource your unemployment claims administration you’ll save money not only on the administrative costs themselves, but on the claims, too. Outsourcing your unemployment benefits to a PEO is much cheaper than paying an internal employee to do them. If you have been using an internal employee to handle your unemployment claims, or if you’ve been handling them yourself, you’ll free up valuable time that you or your employees could spend on more important things, things related directly to your business operations.
You’ll get help auditing claims and deciding which claims are warranted and which are unwarranted. You’ll only pay what you owe on legitimate claims. That will save you money that you can reinvest in other areas of your business.
Get Help with Unemployment Hearings
Unemployment claims hearings are one of the most intimidating things you can face as an employer, but when you outsource your unemployment claims services, you can get advice about how to navigate unemployment hearings. It’s vital to prepare for an unemployment claim hearing in advance. You need to know what the hearing process entails. We can help you coordinate your efforts with the relevant folks and have all your documentation submitted as necessary, both before and during the hearing. You’ll know what questions you can expect to be asked during the hearing and you’ll be able to prepare yourself with answers ahead of time. Being prepared is the best way to feel confident during the hearing and achieve a good outcome.
Manage Unemployment Taxes
Outsourcing your unemployment claims administration can also help you get tax management assistance. You need to know what unemployment tax rates you should be paying, especially since these rates can change from one state to the next and over time. You may also want help with tricks and tips to help you save on your unemployment tax contributions.
Stay Ahead of the Curve with Employment Law Advice
When you outsource your unemployment benefit claims administration, you can even get advice on every aspect of employment law compliance, including hiring, firing and disciplining your employees. Today’s companies must comply with an absolutely overwhelming number of employment regulations, and with the new health care reform coming in, things are getting even more complicated. It’s enough to make your head spin. But you don’t have to deal with it alone.
Outsource your unemployment claims administration and be assured you’re always in compliance with employment regulations when you hire, fire, discipline and manage an employee. In fact, if you want, we’ll take care of the hiring, firing and disciplining for you.
Outsourcing your unemployment benefits administration can free up time and money for your business. You’ll be able to focus on doing what you do best — running your business. You won’t have to worry about whether or not you’re in compliance with unemployment regulations or paying the right amount in taxes and fees. We’ll take care of the books, and let you take care of your company.