How Proactive Unemployment Claims Management Can Combat UI Solvency Issues 

  • Adding a surcharge to the employer’s experience rating (effectively raising the employer’s UI tax rate)
  • Raising the wage base on which the UI tax is applied
  • Shifting to a different tax table based on the state’s current reserve status
  • Borrowing funds from the federal government or private lenders
  • Reducing the unemployment benefits available to eligible claimants
  • Shortening the duration of the unemployment benefit period
  • Rooting out unemployment claims fraud through rigorous auditing procedures 
  • Taking every step possible to reverse fraudulent or ineligible claims 
  • Diligently and clearly documenting the reasons for termination and the steps taken prior to discharge  
  • Crafting complete and compelling responses to every claim you receive from the state, which includes providing comprehensive supporting documentation    
  • Processing claim responses timely to avoid missing filing deadlines 
  • Winning more lost claims on appeal, by ensuring your staff is thoroughly prepared to testify effectively at appeal hearings 
  • Determining if it’s worth making voluntary UI tax contributions (NOTE: If you operate in a reserve ratio state and your ratio only slightly exceeds a given UI tax bracket, it’s possible that making a small voluntary contribution could keep you in a lower bracket and create a meaningful net tax savings.)  
 2023 2024
If employer took no steps to reduce its UI tax rate
If employer reduced its
UI tax rate proactively 
Number of Employees 5,000 5,000 5,000 
UI Taxable Wage Base $30,000 $33,000 $33,000 
UI Tax Rate for This Employer 1.5% 1.5% 1.0% 
Total UI Taxes Paid $2,250,000 $2,475,000 $1,650.000 
UI Tax Savings   $825,000