FAQ's
Question – Why should I care about managing my unemployment costs, don’t I have to pay UI taxes anyway?
Answer – Yes, you do have to pay UI taxes on each employee, but the amount of those taxes depends on how well you manage your yearly unemployment costs. If you do a good job making sure that you catch overcharges, then you can lower your UI tax rate and save hundreds of dollars per employee each year.
Question – Just one overcharge or unnecessary unemployment claim can’t cost that much, can it?
Answer – Since the average UI claim costs an employer roughly $6,200 in charges alone, not including increased taxes and additional manpower to manage that claim and add in the fact that 1 in 3 charges to employers is an overcharge and you are looking at a very high cost indeed.
Question – What kinds of dollars are involved with unemployment taxes?
Answer – In most states, a company's unemployment tax rate is applied against the first $10,500 of each employee’s wages. In Michigan, for example, the lowest rate that can be applied is 1.0% and the highest is 10.3%. In a 100 person company, the likely taxable wages are one-point-three million dollars. The unemployment tax for this company may vary between $13,000.00 and $136,500 (a $123,500 difference). A single claim has an average cost to a company of between five and seven thousand dollars.
Question – Aren’t claimants entitled to their benefits no matter what?
Answer – No. Claimants are only automatically awarded benefits if they are laid off or they lose their job through no fault of their own. If a claimant is fired for misconduct or has quit for personal reasons, they may be denied unemployment benefits. But only if the employer has protested the claim properly and followed up to ensure the process is completed. Employers must be active in this process and need the tools to be effective.
Question – How will Sentinel Unemployment.NET help me manage my unemployment costs?
Answer – Sentinel is designed with one purpose in mind; to put all of the data that you need to protest claims and fight overcharges in one powerful and easy to use database. Sentinel gives you the tools to manage your own unemployment costs.
Question – How will switching to Sentinel be better for me than outsourcing this function?
Answer – Nobody will work harder to save you money than you. With the proper tools, some training, and strong support, you can manage your UI costs better than anyone else. Even if you are using an outsourcing agent, Sentinel can help you to better oversee their services to make sure you are getting the service that you are paying for. Sentinel provides you with the best tools on the market and outstanding client support; we can also provide you with the training you need to handle your own UI Cost Control program.
| Mindscape