The Basics of Unemployment Law – What You Should Know

Employers are required to manage a lot of different regulatory information, from harassment to disability issues. With unemployment rates still hovering at just above nine percent as of November, 2011, one area that any company must understand and always consider is that of unemployment law. Unemployment law governs not only the methods of terminating employees, but also their rights and your responsibility to them associated with unemployment insurance. There are certain rules and regulations concerning releasing an employee as well as laws that make you responsible for benefits under unemployment law, and knowing all of the basics of unemployment law is important if you want to keep your company on the right side of it. Here's a simple rundown of some of the most commonly encountered issues with unemployment law.

First we'll touch on the method with which an employee leaves your business and unemployment law. Training all employees on your company's policies and including information in a company handbook is a must. While not quite unemployment law, discrimination and other laws can bleed over into unemployment law if you terminate an employee without following the guidelines put forth in your employee handbook. These issues can incur serious penalties and cost your company huge amounts of money and bad publicity. Simply put, follow your company's policy to the letter no matter what and you will stay on the right side of unemployment law, at least as far as how it applies to employee termination.

The next aspect of unemployment law, and the one that most businesses think of when they hear the term, comes in the form of unemployment benefits. Essentially your company must pay into state and federal unemployment funds if you pay any employee over 1500 dollars in a single quarter. Unemployment law is very strict, and the money that you pay in will be applied towards unemployment insurance that covers your workers. If an employee qualifies for benefits under unemployment law, then they will be able to draw benefits until their eligibility expires. As a business, you're required to pay into unemployment benefits on a regular basis.

Unemployment law uses very basic guidelines to explain who is eligible for benefits. Essentially, if you must terminate an employee due to a lack of work or similar issue and if they have paid in a set amount of social security funds, then they like qualify for benefits under unemployment laws. Workers who quit or are fired due to negligence or other violations of company policy won't qualify under unemployment law, although they will have the right to appeal a refusal underneath unemployment law.

Managing unemployment law can be difficult, especially for larger or even mid-sized companies. In order to effectively stay legitimate under unemployment law, using automated payroll and HR solutions like those from Unicorn HRO can help. These programs can automatically deduct payments owed to organizations under unemployment law and can help ensure that you comply with all applicable unemployment law. Staying legal is extremely important in today's business world, and unemployment law is one issue you don't want to ignore.



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