Payroll Perspectives: States Adopt Tougher Standards For Responding to Unemployment Insurance Claim Notices

The Bloomberg BNA Tax Management Weekly State Tax Report filters through current state developments and analyzes those critical to multistate tax planning.

Unemployment insurance represents a significant indirect tax for large multistate employers. New federal law now prohibits the crediting of an employer's account for erroneously collected unemployment benefits when the overpayment results from the employer's failure to timely or fully respond to state requests for eligibility information. In this article, Debera Salam discusses how the bar has been raised on what constitutes best practices in the claims management process and underscores the need for employers to take a more active role in third-party service arrangements.