Failure to respond to state UI notices could result in relief denial, higher rates, and penalties

Employment Tax Briefing
A federal mandate directs states to adopt laws requiring employers and their agents to timely and accurately respond to state Unemployment Insurance (UI) notices. An employer’s failure to comply could result in substantial penalties, a preclusion from recovering erroneous UI account charges, and an increased UI rate. States are required to adopt such laws on or before October 21, 2013. Accordingly, employers should have a process in place to respond to such notices.

We discuss below some of the specific guidance provided in state and federal law, potential consequences for failure to conform with state mandates, and best practices with regard to unemployment claims management processes in order to comply with state mandates and mitigate potential consequences.

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