07.18.13 |
SHARE   |  

Unemployment Insurance (UI) Integrity: Why Supporting Documentation Can Help Save Your Rate

According to the U.S. Department of Labor’s Integrity Rates for All States Report, there were over $5.4 billion in improper unemployment insurance payments made in 2011. Improper charges can have a negative effect on your unemployment insurance tax rates, and reducing these improper payments could help reduce your unemployment insurance tax rates in the future. 

In 2009, President Obama signed an Executive Order requiring federal agencies to reduce improper payments, which includes unemployment programs. In October of 2011, UI Integrity was signed into law as a part of the Federal Trade Adjustment Assistance Extension of 2011. UI Integrity is a federal regulation that requires state unemployment agencies to prevent, detect and reduce improper payment of unemployment benefits.

With a federal deadline of October 1, 2013 quickly approaching for states to comply with the new UI Integrity federal guidelines, state unemployment agencies are working to implement new regulations and laws to ensure compliance. Currently 37 states have enacted some form of UI Integrity legislation, which you can view by clicking on the links below:

Alabama Idaho Mississippi Oklahoma
Alaska Illinois Montana Rhode Island (HB5700)
Arizona (HB2173) Indiana Nebraska Rhode Island (HB683)
Arizona (SB1238) Iowa Nevada South Carolina
Arkansas Kansas New Jersey South Dakota
California Kentucky New York Texas
Colorado Maine N. Carolina (HB4) Virginia
Connecticut Maryland N. Carolina (SB828) Washington
Hawaii Minnesota North Dakota W. Virginia


Failing to comply with UI Integrity regulations and laws can be a costly proposition for employers. Although each state is required to follow and enforce federal guidelines, they may also enact stricter guidelines and have their own set of consequences for employers that fail to comply.

Federal guidelines require that employers not receive relief from charges to their unemployment account in cases where:

(1) an unemployment payment was made because the employer (or its agent) was at fault for failing to timely or adequately respond to the request from the applicable agency for information relating to the unemployment insurance claim; and

(2) The employer (or its agent) has established a pattern of failing to respond timely or adequately to such requests.

As mentioned above, states unemployment agencies can also levy other penalties and take other administrative actions based on the state-specific requirements.

Save yourself the trouble and heartache of unnecessary charges. Always be sure to timely supply the involved agencies or your service provider with all relevant and appropriate claim information and documents related to the separation at the state’s initial request, such as any letters, warnings and policy acknowledgements; most often states will not accept additional information later in the process.

Providing all of the relevant separation information is essential. By not providing all of the necessary detail in a timely manner, you could feel it in your pocketbook with a potentially significant impact to your unemployment tax rate, as well as fees and other actions.

Learn more about unemployment compensation management solutions from ADP.



Sign Up for
Email Updates

featured webinar