[Webinar Recording] What to Do When Employee Behavior Crosses the Line

In early October, after a 3-month cross matching study, it was reported through official channels that nearly $2 million in unemployment benefits were paid to 1,100 people in county jails or state prisons throughout the State of Missouri. $43,000 of that went to a single inmate in Missouri’s Cook County Jail.

While the recipients may now face state and/or federal criminal fraud charges in addition to their previous charges, the overpayments in Missouri are simply a small indication of the larger, systematic overpayments—more than $13.7 billion this year!—that are a regular occurrence across the country.

Unfortunately there is little that can be done to force those who have maliciously collected improper payments to repay their debt, which has further weakened the already unstable UI system. And, as is to be expected in an employer funded tax pool that has already been maxed out in many states, the overpayments—whether intentionally improper or not—have strained the ability of businesses to further develop, which has prevented necessary workforce expansions. And ultimately continues to hurt the economic recovery.

Although unemployment benefits only provide a portion of a jobless workers former wages (when properly collected), the benefit funds allow those still looking for work to continue supporting themselves by paying for basic household and living expenses, which has allowed nonprofits that serve those hardest hit by the financial depression to reach a greater portion of the population most dependent on their services for basic living needs.

According to the Congressional Budget Office though, more than $250 billion have been spent on unemployment benefits in the last five years, with more than two million jobless workers currently receiving expanded UI benefits from the Federal Government, which totaled $94 billion in the last fiscal year alone.

For nonprofits still paying into the state’s pooled UI tax system, continued overpayments and the high cost of paying for the unemployment trends at other, larger companies, further creates a drain on much needed monetary resources that could be better directed back toward their founding mission.

To learn more about how your nonprofit can opt out of the state’s UI tax system and reduce unemployment costs request a quote today.

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07/05/17 1:15 AM

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