Employers – Seven Ways to Lower Your Unemployment Taxes

One: Report Your New Hires. Make us part of your hiring routine. Help prevent $5 million in fraudulent claims and lower your tax rate by reporting your new hires to the Idaho Department of Labor within 20 days. You can report online or just add your employee’s start date and your employer identification number to the bottom of the W-4 and drop it off, fax or mail it in. It’s easy. It saves money. And everyone benefits. Learn more at labor.idaho.gov/newhire

Two: Respond Quickly to Unemployment Claims. Oftentimes unemployment insurance overpayments can be easily avoided when employers respond to claims filed by former employees in a timely manner.

Three: Understand Claimant Eligibility Requirements. Claimants are eligible for unemployment benefits if they are laid off due to lack of work, have a reduction in hours to less than full time, or are discharged for reasons other than misconduct or quitting for good cause.

Four: Implement Clear Employee Policies and Keep Records. An employer needs to maintain clearly documented and communicated employee policies when proving misconduct. Keep records of all job orientation, training, evaluations, warnings and disciplinary actions.

Five: Report and Pay Your Unemployment Insurance Taxes On Time. Employers who file and report on time may be eligible for a lower rate the next calendar year.

Six: Respond Quickly to Information Requests. Unemployment benefits are charged to the employer who paid the most wages during the claimant’s base period. When employers respond to our requests for additional information quickly and efficiently, it helps us detect improper payments and minimize benefit charges.

Seven: Report Unemployment Insurance Fraud. Abuse depletes the trust fund and drives up unemployment insurance tax rates for business. It’s also against the law and unfair to employers and claimants who follow the rules. Report fraud at labor.idaho.gov/uifraud or call us toll free at (800)672-5627.

One thought on “Employers – Seven Ways to Lower Your Unemployment Taxes

  1. Sol Barden

    Unemployment is really a problem these days, i hope that the economy will become much better. Unemployment rates are still very high on our country.

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