SHARE   |  

Unemployment Insurance (UI) Integrity…Taking Charge of Your Charges

In 2011, President Obama signed the Trade Adjustment Assistance Extension Act of 2011 into law. This act added a new subsection to the Federal Unemployment Tax Act (FUTA), prohibiting states from relieving employers of charges to their unemployment tax account when both of the following conditions exist:

  • A payment was made because the employer, or an agent of the employer, was at fault for failing to respond timely or adequately to the request from the agency for information relating to the claim for compensation.
  • The employer or agent has established a pattern of failing to respond timely or adequately to such requests.

The intent of this additional subsection to FUTA was to improve the integrity of the unemployment insurance (UI) system by ensuring that only those individuals who are entitled to UI benefits receive them. To ensure that an accurate determination regarding eligibility for UI benefits is made, employers must timely respond to state UI agency requests for  pertinent details of employee  separations. 

Individual states have until October 21, 2013 to comply with the new FUTA federal requirement. With the October 21, 2013 deadline approaching, there is an influx of legislative activity from states. UI integrity laws are already in effect in Illinois, Mississippi, Nebraska, Oklahoma and West Virginia, and UI integrity laws have been adopted in California, Colorado, Hawaii, Idaho, Iowa, Kentucky, Maryland, Minnesota, North Carolina, North Dakota, South Dakota, Virginia and Wyoming, although such recently adopted laws do not take effect until later this year. Based on information from, at least another 14 states have introduced legislation since the 2013 legislative session started, including Alabama, Alaska, Arizona, Connecticut, Indiana, Missouri, Montana, Nevada, Ohio, Oregon, Rhode Island, South Carolina, Texas and Washington.

Take action now; align your unemployment claim submission and processing activities prior to the October deadline to help you avoid unnecessary risk.

Learn more about unemployment compensation management solutions from ADP.



One comment on “Unemployment Insurance (UI) Integrity…Taking Charge of Your Charges”

  1. Arron says:

    I am actually delighted to read this webpage posts which consists of lots of valuable facts, thankms for
    providing such information.

Leave a comment

Your email address will not be published. Required fields are marked *


Sign Up for
Email Updates

featured webinar