SHARE   |  

Choosing SIDES: An Innovative Resource to Help Prevent Increases in Unemployment Tax Rates and Protect Data Security

Tax Rate The State Information Data Exchange System (SIDES) is an Internet-based, nationally standardized tool that employers and third-party payroll administrators can use to help prevent the increase of state unemployment tax rates by enabling quick and accurate electronic responses to unemployment insurance (UI) requests in nearly every state.

ADP government relations analyst Alison Duronslet contributed to a recent Bloomberg BNA white paper titled “State Information Data Exchange System – SIDES: A Resource to Reduce Unemployment Tax Costs” to share background on SIDES’ development, talk about ADP’s experience working with the system to date, and highlight the advantages SIDES may offer to employers and payroll administrators alike.

How SIDES helps saves time and money

By enabling employers to respond in a secure, electronic way to UI requests, SIDES makes it easier to help prevent unemployment benefits from being improperly paid or overpaid, thereby preventing the increase in tax rates or a loss of appeal rights. The time payroll administrators can potentially save by receiving and responding to UI requests means that they have extra days to compile necessary paperwork and make sure their submissions are accurate. This may be especially useful in states that require a quick turn-around for responses.

SIDES also helps reduce the bottom-line impact of administrative costs like postage, paper work, phone calls and staff time, the white paper explains:

SIDES not only helps employers prevent loss of their right to appeal unemployment benefits-eligibility determinations, but can lower the time and costs that employers spend appealing eligibility determinations they feel to be unjustified. Over the four years since its implementation of SIDES in 2010, ADP, LLC. was able to use the more efficient data collection processes offered by SIDES to increase the percentage of appealed claims that its clients won at the first level of appeal[2]

Duronslet notes in the white paper that “the number-one biggest benefit for [ADP] was the security of the data. [Papers containing Social Security numbers sent through traditional mail] can open up opportunities for the wrong parties to receive the information.”

As of July 31, 2014, employers and third-party payroll administrators can receive separation information requests from 39 states, the District of Columbia and Puerto Rico through SIDES and realize the efficiencies and security the system can provide.

ADP SmartComplianceSM Unemployment Claims Module clients may benefit from ADP’s leadership in SIDES’ development.

 

 
 



[1] State Information Data Exchange System – SIDES: A Resource to Reduce Unemployment Tax Costs, Bloomberg BNA, Copyright 2014 by the Bureau of National Affairs, Inc.

[2] State Information Data Exchange System – SIDES: A Resource to Reduce Unemployment Tax Costs, Bloomberg BNA, Copyright 2014 by the Bureau of National Affairs, Inc.

 



1-855-864-1712

Sign Up for
Email Updates

featured webinar