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Know Your Unemployment Tax Rate

by Alan AtkinsMay 21, 2015 8:00 AM

Many small business owners can tell you in a given day what they are paying for fuel in their fleet of vehicles, how much their labor costs are, what their inventory costs are, etc., etc., but most cannot tell you their Unemployment Tax Rate.

No, it's not because owners don't care about the bottom line. More likely, this is because many business owners do not understand that Unemployment Tax is an expense that can be controlled.

You can save time and money by partnering with a PEO to help manage your unemployment claims risk.

The Factors of Unemployment Tax Rates

There are many factors that make up the rate that a company is charged. For example, a seasonal work force and your company's unemployment claims history can have a dramatic impact on what you pay.

The Burden of Unemployment Tax Rates

High unemployment tax rates can become a major financial burden on a company that, left unchecked, can prevent you from reinvesting in new equipment, new employee perks, and more. Your company also loses production hours dealing with the unemployment hearing process.

The Solution to Unemployment Tax Rates

Employing a Professional Employer Organization like GMS can assist in controlling this risk in several ways:

  • The use of strategic human resources solutions
  • Specific job descriptions to lay out expectations of performance
  • Employee handbooks to build a solid platform for any company structure
  • Provide guidance to navigate the ever expanding and difficult world of employee relations
  • Provide back office assets to assist a business owner during the hearing/claim process

In the State of Ohio, the home state of GMS, the average win rate of employers fighting unemployment claims is about 50%. By contrast, in the past year, the success rate for GMS was over 90%.

Give us a call today at 888-823-2084 or contact us online to explore how GMS can make your business simpler, safer, and stronger!

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