Reece O Dell Sloan, Montgomery, Gregory & Hall, Inc.

Transcription

1 Reece O Dell Sloan, Montgomery, Gregory & Hall, Inc.

2 South Carolina employers pay state unemployment taxes on the first $12, earned by each employee annually. Prior to 2011, the wage base was $ In 2015, it will increase to $14,000.00

3 Lower Tier Tax Classes % ($88.68/employee) % ($241.32/employee) Upper Tier Tax Classes % ($453.96/employee) 7.855% ($942.60/employee) New Employers Class 12 for first year

4 Tax Class % ($11.40/employee) This is rate available to companies who have had no unemployment benefits paid on their behalf during the current look back period.

5 2013 Nine Years 2014 Three Years The three year period to be used to determine the 2014 tax rates is July 2010 June 2013.

6 Company Benefit Ratio determined based on unemployment claims paid as a percentage of the total taxable payroll during the look back period.

7 The benefit ratios for every account in the state are then put in order from lowest to highest. All companies with a zero ratio are assigned Tax Class 1. All others are then distributed evenly across Tax Classes 2-20.

8 Key Points: Number of employees and size of the taxable payroll do not matter once the benefit ratios are determined. Benefit ratios are recalculated every year and companies are redistributed across the 20 tax classes annually, therefore

9 A company s tax rate can be impacted by the behavior of other companies. The change from a nine year look back period next year to a three year look back is going to result in a major reshuffling of the deck.

10 Limit the amount of taxes paid by controlling turnover. Lower the company s benefit ratio each year by not paying any more unemployment benefits than necessary. Have three consecutive years of no benefit payments, which will put the company in Class 1.

11 An employee voluntarily resigns under certain circumstances. An employee s hours or pay are reduced below a certain threshold. An employee is terminated without good cause as determined by the Department of Workforce.

12 Reduction of hours or pay (usually >20%). Significant change of shift or hours. Substantial increase or change in job duties. A change or elimination of a term of employment previously agreed upon. Harassment Illness or disability Company should not be charged.

13 All workers have a weekly benefit amount that is tied to previous wages earned. When hours with a current employer are reduced on an ongoing basis, an employee can file a claim for partial benefits In any week the employee is paid less than their benefit amount, a claim can be made for the difference.

14 DEW will usually grant benefits to former employees when the separation is a result of: Lack of production Inability to do the job No evidence of intentional misconduct Layoff

15 Intentional Misconduct Negligent Actions Violations of Company Rules Failure to meet a standard of conduct that is reasonable for an employer to expect.

16 One and done offenses are the serious violations the warrant termination after the first incident. No warnings expected or necessary

17 Fighting Theft Dishonesty (e.g. time records, sales reports, etc.) Intoxication Insubordination No Call/No Show

18 Attendance Tardiness Mistakes and Errors Job Performance Violation of Established Rules Anything That Isn t One and Done

19 Best Practices: Documentation Warnings, Performance Reviews, etc. Evidence Time Records, Repair/Replacement Invoices, Computer Records, etc. Witnesses First Hand Knowledge

20 Waiting too long after final incident Firing for lack of production only Not letting employee work notice Reducing hours Missing filing deadlines Thinking company is not liable

21 Initial Claims Administrative Hearings Appellate Panel Hearings

22 Notification by mail, phone or online. Register for online at 10 days to respond. Look for interview date. Employer does not participate in interview. Do not overwhelm intake with explanation and documentation. 50/50 often decided for claimant.

23 Decision should arrive no later than 10 days after claimant interview. 10 days to appeal decision. No explanation needed. Hearing should be scheduled within 3-4 weeks of appeal.

24 Difficult to get postponed Either in person or by phone If by phone, evidence must be submitted to DEW and mailed to claimant in advance. In person, original and two copies of evidence must be taken to hearing. First-hand witnesses must participate.

25 Party that took the action will testify first. Start at the end, then go to the beginning and work forward. Submit or reference evidence when discussed. Hearing Officer will ask about warnings and company policy. Do not cross-examine.

26 Decision with 7-10 days. 10 days to file appeal from mailing date on the decision. Appeal should detail reason you believe the Hearing Officer made an incorrect decision. Panel may reject appeal or make decision without a hearing. All hearings are in person in Columbia.

27 Either party can submit a written argument. Party who appealed will present first and last. 10 minutes allowed to each side. No new evidence allowed. Argument is that previous decision was wrong (or right). Refer to transcript by page and line number.

28 Decision issued in 7-10 days. Can be appealed to a Court.

29 Shows who received benefits chargeable to the company. Check for accuracy. No statement if no benefits paid.

30 Reece O Dell Sloan, Montgomery, Gregory & Hall, Inc rodell@sloanmontgomery.org