Over the past few years, the high burden of benefit payments resulting from high unemployment has seriously depleted the State of Michigan unemployment insurance trust fund. Because of the massive increase in claims volume along with agency staff reductions and the closing of claim offices, state claims examiners are not equipped to investigate claims properly thus most of this burden falls back to employers. Employers should not rely on the State to follow up on claims from those who quit their last job or were discharged for cause.

Employers can limit their unemployment insurance costs from layoffs that are either seasonal or temporary in nature. Refusal of suitable employment generally should disqualify an individual currently collecting unemployment insurance benefits. Detachment from the labor market is also disqualifying. There are numerous personnel practices that employers can implement to reduce this cost, however if employers do not respond properly and aggressively it will mean in many cases as much as $10,000 depleted from the employer’s reserve account. Without some level of claims control, many employers will pay double digit tax rates. This means, instead of paying less than $100 per employee for unemployment insurance taxes per year, it could cost well over $1,000 per employee for this cost per year.

Protect your profit margins today with a strict unemployment insurance cost containment program. We can maximize your unemployment insurance claims savings and thus help you achieve the lowest possible tax rate under the law.

  • Developing systems to prevent unwarranted claims.
  • Developing policies for proper documentation leading to an employee's termination.
  • Avoiding claims of discrimination.
  • Defining an independent contractor.
  • Reviewing pertinent documentation prior to hearings.
  • Determining appropriate witnesses to bring about favorable dispositions.
  • Preparing witnesses for participation at hearings.
  • Attending hearings as required. Many employers use lawyers which is costly and not necessary.
  • Filing protests on all claim determinations with which client disagrees.
  • Filing a brief to appeal any unfavorable decision issued by State Administrative Hearing Officers.
  • Requesting and monitoring credits where applicable