Unemployment Insurance Services

INCREASED PROFITS THROUGH TAX RATE REDUCTIONS. "WHICH TAX ?"

The State Unemployment Tax, reported and paid quarterly by each employer.

NOTE: THE FOLLOWING EXAMPLE AND CHART IS AN EXAMPLE OF RATES FOR CALIFORNIA EMPLOYERS. TAX RATES AND TAXABLE WAGES VARY FROM STATE TO STATE.

By reducing your unemployment tax rate to the minimum. The 2010 tax rate assigned to an employer varies from a high of 6.2% to a low of 1.5%. The rate is applied to the first $7,000.00 of wages paid to each employee during the calendar year. This means that you can pay as much as $434 per employee each year, or as little as $105 per employee each year; a difference of $329 per employee each year.

Each quarter, the employer reports and makes payroll tax contributions to the State in accordance with his individual assigned tax rate. Former employees, if determined eligible, may collect funds paid out of these contributions. The balance at the end of the year is credited to the employer's reserve account. The higher the reserve balance, the lower the tax rate for the next calendar year.

1. By control of charges to your reserve account.

Former employees may collect funds drawn from your account as late as two and a half years after termination. Every effort must be made to ensure that ineligible former employees are not allowed to draw form your account.

2. By correction of errors.

It is necessary to audit charges to your account annually to preclude errors from reducing your reserve balance. It is also necessary to verify calculations used to determine your rate for the next year.

If you acquire a portion or all of another employer's business, you may be eligible for transfer of some or all of his reserve account balance.

1. Establish and maintain a control system designed to achieve the lowest possible tax rate for your company.

 

2. File protests and appeals for you on unemployment insurance claims that we reasonably consider unjustified.

 

3. Attend and/or represent your company at all hearings before Administrative Law Judges and the Appeals Board.

 

4. Handle, in your best interest, all oral and written communications with the various State Departments that are concerned with unemployment compensation taxes and/or claims.

 

5. Maintain surveillance of transactions to your Account(s) and correct errors, as required.

 

6. Insure, when applicable, that charges for unemployment benefits are assessed to the State general fund or to another base period employer instead of your reserve account.

 

7. Review your records and analyze your past, present, and future transactions in an effort to obtain tax refunds or savings.

 

8. Counsel and advise you to achieve the best possible tax position in the event of reorganization, acquisitions, mergers, or sale of operating entities.

 

9. Conduct seminars and training lectures to insure that your management and supervisory personnel are knowledgeable in proper termination methods and unemployment claims procedures.

 

10. Be available by telephone during business hours to render consultation and advice in the handling of complex or emergency termination problems.

 

11. Render periodic reports of status and results.

 

12. Provide (without additional charge) all forms, instruction sheets, and supplies.

The fee for our service is nominal and based on the number of employees on your payroll. There are no "hidden" or "extra" costs. Most employers do not have anyone on their staff with the specific knowledge and experience necessary to achieve optimum tax rates. Even if they did, the time spent would cost much more than our fee. We devote full time professional attention to realize the lowest possible tax rates for our clients.

 

Employers Cost Containment Group

Telephone: (818) 841-5646

Fax: (818) 841-5516

For all inquiries, please email Cal

Copyright © 2001 Employers Cost Containment Group