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Show Unemployment Tax Law Points Need For Good Personnel Practices Good management practices not only will help reduce unemployment insurance taxes, but also could lead to increased productivity and improved morale in a company's workforce. This was the message conveyed by Utah Foundation, the private research organization, in its latest study of reducing unemployment benefit costs in Utah. The study notes that attention to employment practices has become increasingly important to employers because of a new method for calculating unemployment tax rates. Beginning January 1, 1985, employer tax rates in Utah will be determined mainly by the unemployment benefits that are paid to former employees of the company. In the past, employer tax rates in Utah were based on the amount of stability in quarterly and annual payrolls. Foundation analysts emphasize that the new system places greater responsibility on the individual employer for controlling benefit costs and determining future unemployment tax rates. Although the changeover will not occur until 1985, present personnel policies regarding the hiring and firing of employees will have a direct bearing on the unemployment taxes that an employer will have to pay in subsequent years, Among the specific suggestions outlined in the report for controlling benefit costs and minimizing future unemployment tax liabilities are the following: 1. Accurately determine employment needs before hiring new employees. Each new employee represents a potential unenv ployment tax liability if the workforce later must be reduced. 2. Consider overtime, the use of temporary services, and contracting for services to meet peak workload periods. 3. Be especially selective in employing new workers. Hiring mistakes will be very costly under the new law. 4. Provide adequate training and supervision for new employees. Many hiring "mistakes" can be traced to the fact that new employes are not informed of what is expected of them. 5. Encourage older employees to upgrade their skills and become more productive on the job. Employees should be made aware of their value and importance to the success of the firm. 6. Consider retraining present employees, rather than hiring new employees if some of the activities of the company change. 7. Assist terminated employees in finding new employment. Under the new system, unemployment tax rates for a company will be determined by the unemployment benefits actually received by f ormer employees of the company. 8. Place a premium on accurate reporting of the reasons for termination of the separation notices (blue slips) furnished to departing employees. Under the new system, the reason listed on the blue slip could affect an employer's unemployment tax rate. 9. Carefully check all benefit claims that are filed against the company by former employees. Under the new law, it is the employer's responsibility to check the accuracy on unemployment benefit claims of former employees. 10. Verify the accuracy -of all benefit payment charges made against the company. These charges will become the basis for deter mining the company's unem ploymeia tax rate for the next four years. |
