UNDERSTANDING UNEMPLOYMENT BENEFITS. Texas Workforce Commission

Transcription

1 UNDERSTANDING UNEMPLOYMENT BENEFITS Texas Workforce Commission John Riojas Unemployment Insurance Field Specialist Office Cell

2 History of Unemployment Texas Unemployment Compensation Act (TUCA) passed in Similar to the Social Security Act of TUCA set forth many requirements still in place today: Established Unemployment Tax guidelines Established who is covered under Unemployment Benefits Set monetary parameters (Minimum/Maximum benefit amounts) Established eligibility requirements Unemployment Benefits provide temporary, partial wage replacement to those workers who lost their jobs through no fault of their own, and are looking for new jobs. Applicants must meet ongoing requirements to be eligible to receive benefits. Eligibility Requirements Enough earnings in the base period to qualify monetarily A non disqualifying separation from last employer Register for work Be able to and available for full time work Willing to apply for and accept suitable work Actively search for work (Local Workforce Board sets minimum for area) 2

3 Benefit Amounts Weekly and total benefit amounts are based on the applicant s past wages during the base period*. The weekly benefit can be any amount from $64 to $465 (minimum and maximum benefit amounts for Fiscal year 2014) The maximum (total) benefit amount is the lesser of 26 times the weekly amount OR 27%of base period wages. A claim is in effect for one year, regardless of the total benefits the applicant can receive. *Base period is the first four of the last five completed calendar quarters before the claim date. Benefit Year Example: Claim filed September 7, 2014 is in effect through September 5, $300 (weekly benefit) X 26 Weeks = $7,800 (total benefits) Unless the applicant works, the benefits will run out in about 6 months, before the claim expires. 3

4 How Work Affects Benefits Applicants who work must report earnings and hours worked. Applicants who work full time are not eligible for benefits. Applicants who work part time are eligible, as long as they continue to meet the eligibility requirements. Applicants may earn up to 25% of the weekly benefit before TWC reduces their unemployment payment. For example: $ % = $375 $100 (wages) $275 (benefit payment) How Pensions Affect Benefits Retirement pay is deductible if based on wages earned from a base period employer. If deductible, we convert the monthly pension amount into a weekly amount, and reduce the benefit payment by that amount, dollar for dollar. For Example: $500 (monthly pension) x 3 (months in a quarter) 13 (weeks) $115 (calculated weekly pension) $300 (weekly benefit) $115 (weekly pension) $ 185 (benefit payment) 4

5 Preventing Improper Payments TWC cross matches applicants personal and claim information with a variety of official records & databases to identify potential fraud and prevent improper payments. New Hire: TWC uses new hire data reported by employers to ensure claimants report when they ve returned to work. Quarterly Tax Records: TWC compares the quarterly wage information you report to the earnings reported by the claimant. Incarceration & Deceased: We use incarceration records and Texas Department of State Health Services vital statistics data to make sure TWC does not pay benefits to claimants who do not meet eligibility requirements. How You Can Prevent Fraud Employers can help TWC prevent unemployment benefits fraud: Report new hires immediately to the state Attorney General s office. Report the date your employee started work as the new hire date. To report, go to: or call TEX Hire ( ). Respond quickly and completely to any notice that a former employee has applied for unemployment benefits. We need your detailed separation information to make the right decision about paying benefits! Follow the instructions on the notice. Respond promptly to any earnings information request. We reduce the applicant s weekly benefits by the amount of money they earned. Follow the instructions on the notice. 5

6 TWC Home Page Unemployment Claim Management & Appeals Respond to an unemployment notice; Learn about your rights and responsibilities; Get information on the appeal process. From TWC s Homepage, select Manage Unemployment Claims & Appeals 6

7 Appeal Information for Employers Learn about the appeals process, review the Appeal Policy & Precedent Manual, or submit an appeal using TWC s online form. Select The unemployment benefits appeal process, under Appeal a Decision, from the Unemployment Claim Management page. Appeals Policy & Precedent Manual The manual lists decisions from the Commission and state and federal courts that govern the unemployment appeals process. Select Appeals Policy and Precedent Manual, under Resources on the Appeal Information page. 7

8 Claim Process UI Claim Filed Employer Notified of Claim Decision Issued Either Party can Appeal if Disagrees with Decision Appeal Levels 1 st Level: Appeal Tribunal 2 nd Level: Commission Appeal 3 rd Level: Motion for Rehearing (Optional) (Rare) 4 th Level: Appeal to Civil Court (Very rare) Mass Claims for Unemployment Benefits The Mass Claims program streamlines the claim process for employers who need to lay off 10 or more employees. Learn about the advantages of the program and how to apply. From the Unemployment Claim Management page, select Use our mass claims process. 8

9 Shared Work The Shared Work Program provides employers an alternative to layoffs by supplementing employee wages due to reduced hours with unemployment benefits. From the Unemployment Claim Management page, select Save jobs with a shared work plan. Especially for Texas Employers Publication created for Texas employers to help with hiring to post separation issues including: Top Ten Tips for Employers Hiring: Basic Legal Issues for Employers Pay and Policy Issues Work Separation Issues Employment Law Related Web Sites The A to Z of Personnel Policies Important Employer Contact Information and Posters Employment Law Examples and Sample Training Materials Available online, PDF, or you can request a printed version 9

10 Texas Business Conference Locations and dates for upcoming Texas Business Conferences: Nacogdoches, September 12, 2014 SOLD OUT Fort Worth, September 24, 2014 To register, go to select the Events tab, then Texas Business Conferences. You can register online or by mail. For additional information, call the TWC Conference Planning office at (512) Unemployment Tax Contact Information To find your nearest Unemployment Tax Office Go to and select Contact Us From the Contact Information page, select Unemployment Tax Contact Information. 10