We recently attended the 36th annual American Payroll Association Congress in National Harbor, MD. One session focused on increasing a payroll department’s visibility with management. This could be achieved by demonstrating the significant savings created by lowering a company’s unemployment tax rates.
While in principle this is a sound statement, there was no industry specific metric to measure success and potential savings.
UCA has now developed a metric, using publicly available US Department of Labor data, to identify industry specific High, Average and Low SUI tax rates, by state.
By utilizing this metric, employers will now be able to compare its SUI tax rates to its industry’s low, by state. Goals can now be established, savings projected and decisions as to program improvements can be made. Defining a goal is the first step in creating a program that could save tens of thousands to millions of tax dollars, annually.
Two examples:
- A recent analysis of a 7,000, employee hospital, without a specific goal, paid $1.2 million more than a similar hospital (client), in the same state.
- In another case, after establishing a goal, based on the industry’s metric, a 10,000, employee company, reduced its annual SUI tax cost by over $1.5 Million, per year.
If you’d like to compare your SUI tax rate(s) to the metrics developed, please contact John Doran at john.doran@ucalternative.com or at 301-355-6249.
The comparison is free and the upside is huge, both in terms of savings and resulting management visibility!