Welcome to the Employment Development Department's video for employers, How to Protect Your Business
from Higher Unemployment Insurance Taxes.
In this video, you will learn how to save yourself time and money by helping us reduce
the occurrence of people being paid unemployment benefits that, it turns out, they were not
eligible to receive.
This is called an "improper payment."
What are the causes of improper payments?
The leading causes of improper payments are unreported work and misreported earnings when
claimants certify for continued benefits, and incorrect separation reasons provided
by claimants at the time of claim filing.
Another cause of improper payments is when the EDD does not receive timely eligibility
information from employers.
For your side to be heard, it's extremely important to respond to all requests for information
by the due date.
Otherwise, a decision will be made based on available information.
By helping us prevent improper payments, you help preserve your UI reserve account.
How can I help prevent the leading causes of improper payments?
One of the most important things you can do is to provide specific information to the
employee for his or her separation reason.
Stating something like, "You don't need to come back to work tomorrow," isn't sufficient.
They need to know if they were laid off due to a lack of work, or if their employment was
terminated.
By doing so, it will help former employees indicate the correct separation reason when
filing their claim, which helps determine their eligibility for benefits.
Respond promptly to all requests for information from the EDD.
Provide complete, accurate, and timely separation information.
In order for us to make a well-informed decision, the EDD needs all facts and any supporting
documentation that you can provide.
Respond faster by using the online State Information Data Exchange System (SIDES).
SIDES allows you to electronically receive and respond to the EDD's request for separation
information.
This tool streamlines communication between you and the EDD and gives you more time to
gather required information.
To learn more about SIDES watch our SIDES video available from our EDD website.
Respond promptly to earnings verification requests from the EDD by providing detailed
wage information.
Providing detailed wage information helps us ensure that a claimant is properly paid
benefits.
In many cases, the claimant misreported wages and this will help us get the claim back on
track.
If you receive a phone call from us, be sure to call us back for your voice to be heard.
We conduct eligibility interviews with both the claimant and employer.
This gives each side an opportunity to have their voice heard.
Therefore, it is important to participate in this process.
You also have the chance to provide a rebuttal to any conflicting information provided by
the claimant.
Again, specific information is what we're looking for.
If a separation is involved, be sure to provide details surrounding the final incident and
the action you took leading up to the termination.
Is there anything else I can do to help prevent improper payments?
Yes, there is!
Report new hires and rehires immediately to the EDD.
This action alerts us that a claimant has gone back to work and ensures that they stop
collecting UI benefits.
To notify the EDD of any new hires or rehires, login to your e-Services for Business account
and complete the Report of New Employee(s), DE 34, online.
You may also submit the paper form by mail or fax.
If you don't have an e-Services for Business account, no worries, you can create one by
visiting the Employer Services home page and selecting the e-Services for business link
under, "Manage your tax account."
Review the handbook Managing UI Costs, DE 4527, which provides information on how you
can minimize your UI costs, avoid higher UI taxes and prevent overpayments of UI benefit
payments.
For a link to the handbook and more information for employers to avoid higher UI taxes, visit
the Fraud and Penalties: What You Need to Know home page on the EDD web site.
Another way to help prevent improper payments is to respond timely to the New Employee Registry
Benefit Audit, DE 1296NER.
This form is mailed to employers when new employment is identified by the EDD.
Simply provide all the required information and mail the form to the EDD.
For more information on reporting new hires or rehires, visit the New Employee Registry
home page on the EDD website.
It is also important to respond timely to the Benefit Audit DE 1296B when received.
This audit is sent to employers who report wages for a claimant during the same calendar
quarter that UI benefits were paid.
The audit's goal is to obtain accurate work, earnings and eligibility information from
employers.
This helps avoid one of the leading causes of improper payments, unreported work and
earnings, and helps prevent increases to your UI tax rate.
For more information about benefit audits visit the Benefit Audit home page of the EDD
website.
When an employee is separated from your employment, you should always provide them with the pamphlet,
For Your Benefit: California's Programs for the Unemployed, DE 2320.
This pamphlet provides information about the UI program, including how to file and certify
for benefits.
The better informed claimants are about the UI program, the more likely they are to provide
us with the correct information needed to make accurate decisions.
Do you have any additional tips to help control my UI costs?
Yes, be well-informed.
Our website has some useful tools for you to learn more about the UI program.
Last, but not least, know your rights.
In order to receive a decision or ruling regarding a claimant's eligibility for UI benefits,
you must respond timely to our request for separation information.
This is important because these documents advise you whether or not your UI reserve
account will be charged.
If you responded timely, you also have the right to appeal an eligibility decision by
submitting your request in writing to us within 30 calendar days from the mailing date of
the notification.
We hope you have found this video informative and useful in helping you control your UI
costs.
Be sure to check out our other videos, available from our EDD website, to assist you in navigating
EDD's employer services.