FAQ

Employers provide virtually 100% of the funds required to finance unemployment insurance benefits paid to claimants. There is a small employee tax in Alaska, Pennsylvania, and New Jersey.

In most cases, yes. Unemployment insurance is the only controllable employer payroll tax. If an employer manages its unemployment program effectively (or employs a third-party administrator to do so), it can substantially control and reduce the amount of unemployment taxes it pays. In some industries, paying unemployment is inevitable when there is only seasonal employment available.

A claimant may be allowed to collect unemployment insurance benefits while they are working. Wages earned through employment must be reported to the state agency. The agency computes the amount of wages against the benefit amount the claimant is eligible to receive. This computation may result in reduced benefit payments or a cancellation of benefit payments.

Generally, misconduct is a deliberate action (or a series of actions) by the employee that violates a known rule or company policy of the employer. Incidents of poor judgment, an accident, or a simple mistake are generally not seen as misconduct. Each state has its own definition of misconduct that has been created through case law or legislative action.

The most basic requirement is that the individual must be out of work through no cause or fault of their own. The claimant must also be able to perform work, available to accept work, and actively seeking work. Additionally, the claimant must have sufficient earnings in the base period.

Proper hiring and separation practices are the best way to avoid paying benefits to former employees. Start by making sure the person being hired is the right person for the job. When the time comes to separate an employee, whether through discharge or a voluntary resignation, make sure the entire process is documented.

If you are an ADP-UCS client, immediately forward any unemployment documents you receive to ADP-UCS via fax (Click here for a list of fax number). When applicable, it is important to respond to the state by the due date. If there is less than three business days before the form is due back to the state, contact an ADP-UCS representative immediately. Failure to respond or an untimely response may entitle the former employee to receive benefits.

If you are an ADP-UCS client, and you receive an unfavorable decision, we can review your case to determine if an appeal is warranted. An ADP-UCS representative can offer insight into the issues surrounding your case and the appropriate state laws. If an appeal is warranted, it is necessary to submit a letter of appeal to the state agency. All supporting documents that are available should be submitted with the appeal letter. A hearing will be scheduled for you to present testimony with your reasons for disagreement.

A hearing will be scheduled after filing a written appeal. The state will issue a notice of the date, time, and place to report for the hearing. If the party who filed the appeal (plaintiff) does not appear at the hearing, most states will dismiss the appeal without taking testimony or reviewing documents. If the plaintiff appears, and the other party does not, a hearing will be held and a decision will be issued based upon the testimony given. Failure to appear at a scheduled hearing can mean the loss of your rights to appeal an unfavorable decision.

An unemployment insurance hearing is an informal, administrative hearing. Each party is placed under oath with a penalty of perjury by a state-appointed administrative law judge. Testimony is tape recorded in order to preserve the record of the hearing. First-hand witnesses must present information about the reason for separation. Any documents concerning the separation such as warning notices, a resignation letter, or other documents pertaining to the employment must be presented to the administrative law judge and to the other party in order to be considered as part of the record. Each side is given the opportunity to explain why the separation occurred. Both sides are also allowed to question the opposing party about any testimony that has been given.