Companies have a vested interest in cutting their costs without decreasing the quality of their produced goods or services, and without negatively impacting the infrastructure and design of their daily workflow.
Usually, taxes involve are static, fixed-percentage calculations that means firms cannot negotiate just how much tax they pay. Of course, some businesses seem to find loopholes through registering their companies in tax havens, although the legality of this is dubious, and is a surefire way to tank your reputation should the general public find out.
Thankfully, there is one exception in your tax planning, and doing your best to keep those costs low, in this case, can actually positively impact your business and those who work for it. We’re talking about unemployment tax. This is because the amount of unemployment tax a business pays is directly influenced by how many unemployment claims they have. Reduce unemployment claims, you reduce unemployment tax.
In this post, we’ll discuss unemployment cost management and why this can have beneficial results for your team:
Vet Staff & Train Them Well
It’s important to vet staff ahead of time to make sure that they’re the right fit for your company. This includes checking past references, identity checks, and using your human resource department to onboard them correctly. Training them well will also invest in them as a staff member, which will cause them to feel comfortable in your firm and more satisfied in their work.
Review & Document Performance
Regular performance reviews can help you learn where to guide the career of a young hopeful in your space, but it can also give you the means to properly document issues and other working problems. This way, if you need to let them go and they claim unemployment, you can more readily fight the wrongful claim with evidence, managing unemployment fraud more readily.
Help Leaving Employees Find New Opportunities
It’s in your interest for a would-be ex-employee to land on their feet. This doesn’t mean you have to invest money into them as they leave, but writing them a solid reference (if they deserve one), helping them reassert a rewritten resume, and more can help them avoid a period of unemployment between jobs and will lessen the chance of them putting up an employment claim against you.
Utilize Unemployment Claims Management Services
Unemployment claims management services utilize hearing representations with your state agency, apply real-time assessments of the claims you’re paying, while also helping you process appeals and curate tax-rate and benefit-charge auditing as necessary. Click here for an example of one such agency.
They can also help you establish employment verification, which is the first step in the journey. Identifying potential issues before filings, being alerted to upcoming hearings and activity, and measuring compliance effectiveness can be worth its weight in gold when it comes to planning the financial realities of your firm. This process can also help you identify the opportunity for cost control like almost nothing else.
With this advice, you’re sure to keep your unemployment costs down!