Shrinking Budgets, a Fluctuating Workforce and Increased Demand Still Have Many Nonprofits Spread Dangerously Thin

In mid-2011, a new unemployment claims processing system, called the State Information Data Exchange System (SIDES), was introduced. A secure, web based, electronic transmission system enabling two-way data exchange with state unemployment agencies, the finalized program has established a uniform means, between states, employers and employer representatives, for gathering separation information for unemployment claims. Creating this standard expectation of information for all participating states is important because it helps eliminate questions about what details are needed to submit a complete and effective response on a contestable unemployment claim.

Knowing exactly what separation details will be needed in response to the state and having the increased lead time needed to gather that information enables nonprofits to win more claims at the initial level of protest. This is especially important to nonprofit employers where winning claims up-front helps lower claim costs by eliminating benefit payments to former employees while waiting for an unemployment hearing to be scheduled.

Electronic receipt of claims notifications through SIDES also helps reduce follow up time, as a complete response is provided as part of each “first response.”

Ultimately, the program reduces improper payments, since the states are provided with all of the details needed to make the correct ruling in the initial determination. As a result, participation in SIDES saves both time and money.

For nonprofit employers, reducing the high costs associated with unproductive former employees helps increase the funds available to help others and attain organizational goals.

Some of the biggest benefits to nonprofits include:

  • A standard claim response format for participating states
  • More lead time to prepare and submit employee separation details
  • Lead time on claim availability to nonprofits increased by an average of 3 days
  • Reduced benefit overpayments and inappropriate charges
  • Employee information is secured through a reduction of paper documents

UST’s claims monitor, TALX, has been involved with SIDES from its inception and is one of only two forward-looking unemployment cost control organizations utilizing the program to help 501(c)(3) members reap the benefits of this improved claims process.The program has been successful, thus far, and TALX is now live with SIDES in 10 states (AZ, CO, GA, IA, OH, RI, SC, TX, UT, WI). An additional 10 states are expected to go live by the end of August, with 21 more going live by the end of the year. There are 9 states that have not yet made a commitment to participating in SIDES.

If you are a UST member, please contact your TALX representative to learn more about SIDES.

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06/15/11 12:28 AM

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