When unemployment insurance benefit charges are issued by state agencies, it is easy to assume they are issued correctly. However, many states have departments that do not “talk” (i.e. benefits to tax) resulting in benefit charges issued in error.
Charges are issued weekly, monthly, quarterly, and yearly and can be tedious in reviewing. At Thomas & Company, we compare each charge entered into our system against the issued determination. This has caused a significant amount in credits to be issued to employer accounts.
According to the United States Department of Labor, for every $1 in benefit charges removed from an employer’s account, that employer will save $1.39 in future unemployment insurance taxes. Over the last 5 years, Thomas & Company’s clients have had $99,350,584.51 removed in charges; $15,945,376.22 in the last year. That equates to over $1.3 billion in tax savings.
At Thomas & Company, our goal is to provide an effective service that positively affects our client’s tax rates and in turn, provides a return on investment. And the good news is, if you are a client utilizing our Unemployment Cost Control Service, the Benefit Charge Auditing service is included at no additional cost.
As always, if there are any questions please do not hesitate to contact us.