UI Forum (ADP Unemployment Group)

First Quarter 2017



What’s in the UI Forum? Topics include the latest changes to Unemployment Insurance (UI) laws across the country and tips on how to get the most out of your ADP service.

Keep in Touch – Communicating With ADP is Important!

Communication is critical in any successful relationship, right? That’s why it’s important to let ADP know before making any changes to your company information. This helps prevent multiple information requests from ADP while helping keep you compliant with UI integrity legislation through more timely claims responses.

Here are just a few examples of when—and why—it’s beneficial to keep ADP informed

Returning Power of Attorney Forms

It’s important that we receive original signed Power of Attorney (POA) forms, in order to send them to state UI agencies with ADP’s Official Mailing Address (OMA). These forms help ensure that we can represent you for all UI-related matters.

New State Account Numbers, Reorganizations, and Mergers and Acquisitions

Failing to keep ADP up-to-date with organizational changes may mean that:

  • ADP’s tax and claims databases will not reflect the most current legal entity structure, thereby affecting the processing of unemployment claims and rates
  • ADP’s tax and claims databases will not reflect the most current legal entity structure, thereby affecting the processing of unemployment claims and rates
    • Reduced effectiveness and efficiency of claims processing
    • We may not receive important documents directly, which could significantly delay investigation and handling times
    • We would be unable to complete benefit charge reviews and State Unemployment Insurance (SUI) rate verifications
    • Your company could incur penalties and interest resulting from delays in responding to agencies

Upcoming Layoffs including Plant Closures, Reduction in Workforce, and Vacation Shutdowns

For companies experiencing some type of workforce reduction, the following information can help ensure a disruption-free claims process:

  • Each separated individual’s SSN
  • State of employment
  • First day worked, last day worked, and return to work date (if applicable)
  • Reason for separation
  • Details of any separation payment received (for example: vacation, severance, wages in lieu of notice)
  • Relating to separation pay: the gross dollar amount, time period the payment represents, date paid, and dates of allocation (if applicable)

(Please contact your Client Relationship Manager for a spreadsheet of this information)

STATE UNEMPLOYMENT LAW UPDATES

IOWA

In February 2016, the Iowa Workforce Development agency (IWD) announced plans to both launch an app to allow UI claimants to file claims online using mobile devices and phase out its telephone-filing option by October of the same year.

The new system is up and running. Claimants who are unable to file online using their smart phone or tablet device can contact IWD Customer Service Representatives, who are working under a limited capacity during the transition period. Assistance is also available at all Iowa Works offices: (Follow Link)

https://www.iowaworkforcedevelopment.gov/automated-phone-option-phased-out-oct-1-file-unemployment-insurance-claims-online

OKLAHOMA

On Nov.1, 2016, new seasonal employer provisions went into effect under HB 3164. What’s changed?

  • Employers seeking seasonal status must apply to the Oklahoma Employment Security Commission (OESC) for approval at least 20 days prior to the beginning of any normal seasonal work period.
  • Seasonal employers must notify employees of their seasonal status in writing within the first seven days of the seasonal work period, as well as beginning-and-end dates of the seasonal work period. Written notification must also advise employees of their right to file an application for UI benefits at the end of the seasonal work period, while specifically indicating that the employee can continue filing timely certifications to preserve rights to any potential retroactive benefits.
  • Benefits will not be paid for services performed during any week of unemployment that begins during the period between two successive normal seasonal work periods, assuming that the employee works during the first of the normal seasonal work periods. There must also be reasonable assurance that the employee will perform the service for a seasonal employer in the second of the normal seasonal work periods. A written notice of reasonable assurance must be provided to the employee by the employer on or before the last day of work in the season.
  • “Seasonal employer" is defined and designated by the OESC as a non-construction industry employer with operations and business needs that require employees “to be engaged in seasonal employment.”

(The full text of the new law can be found here: http://webserver1.lsb.state.ok.us/2015-16bills/HB/HB3164_ENR.RTF)

PENNSYLVANIA

On November 3, 2016, HB-319 went into effect, with the new legislation loosening monetary eligibility requirements for UI. This particularly impacts seasonal or cyclical industry workers, such as those in the construction industry, where incomes can vary significantly from quarter to quarter.

Prior to new regulations, the qualifying formula for UI in Pennsylvania was: 18 credit weeks (currently defined as at least $116) with 49.5% of wages earned in other than the high quarter. This formula has been modified to: 18 credit weeks with 37% of wages earned in other than the high quarter. In other words, a worker can earn 63% of his/her base period earnings in the high quarter and still qualify for UI.

This returns the cap to its pre-2012 level.

(Additional details can be found at: https://www.governor.pa.gov/governor-wolf-signs-bill-to-provide-unemployment-insurance-for-an-additional-44000-pennsylvanians/)       

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