Benefits of Hiring a Third-Party Agency to Manage the Unemployment Insurance Process
The Benefits of a Third-Party Agency
The unemployment insurance (UI) process can be complex and may be quite challenging for employers. It is very time consuming to have internal staff manage the UI paperwork and if any of the submission deadlines are missed, your company could incur costly fines.
To prevent unnecessary overpayment of benefits and to minimize unemployment costs and risks, it’s recommended that employers to hire a third-party agency (TPA) to manage the UI claims process.
An advantage to hiring a third-party is they can be proactive when managing the UI claims process. They can anticipate filing deadlines for paperwork and save your company time. There is also a potential opportunity for them advocate that your company’s unemployment tax rate be lowered.
The third-party agency has unique experience with the UI process and they’ll have the internal resources to handle unemployment claims effectively.
Since 2013, federal requirements were updated for all states to enforce UI Integrity legislation, so that means it might be more difficult for employers to navigate through these legal changes.
It makes the most sense for employers to outsource their claims management to a third-party agency who specializes in unemployment insurance.
Employers with operations in multiple states may benefit from a third-party agency in the following ways:
- Improved rate of compliance and accuracy (cost avoidance)
- Establishing a third party address of record
- Monitoring of accounts to avoid erroneous charges
- Expert attention to claims to avoid paying for fraudulent or wrongful claims
- Using the employer experience rating to reduce the unemployment tax rate
- Free up resources to save time and productivity
Industrial U.I. is a successful third-party agency that offers unemployment insurance guidance to a variety of employers. Contact us for any questions you may have on the UI process.