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Monday, March 15, 2010


(Keeping your Unemployment Taxes low)

Compliments of: Sam Maloney, Field Deputy, State of Alabama Dept. of Industrial Relations Unemployment Compensation Division

1. Keep adequate records and retain them for a minimum of five years.

2. Answer every request for separation information within six work days from the mailing date of the request.

NOTE: In responding to a request for separation information concerning a former employee, you should not use general terms such as insubordination violation of company policy, absenteeism, or simply quit. If known, state the reason the claimant quit. If the claimant was discharged, provide specific details concerning the final incident that resulted in the separation. For example, if the discharge was due to absenteeism, state when he was last absent, why he was absent, and if he properly reported the absence. Explain rules or policies violated or how the claimant was insubordinate. List dates and reasons for prior warnings. You should furnish us with the reason(s) for separation promptly on this form and, if necessary, a separate sheet of paper. Prompt submittal of the facts is necessary for a good determination and could also protect your experience rating account. The facts you furnish will be used in the determination of eligibility and you will receive a notice of the administrative decision. Employers who have elected reimbursement in lieu of contributions must, under provision of the Law, reimburse the agency for all payments made based on wages they paid to the claimant. (See Privileged information: AL Code 25-4-116)

3. Notify the Department in writing at the time you discharge an employee for a dishonest or criminal act, sabotage, an act endangering the safety of others, use of illegal drugs, refusal to take a drug test, or altering a drug test.

4. Respond within 15 days to a Notice of Potential Charge to Your Tax Rating Account, if the employee left under potentially disqualifying circumstances or continues to work for you.

5. Appeal determinations on claims believed to be incorrect within 15 calendar days from the mailing date of the notice.

6. When it is necessary to lay off employees, rehire them as soon as possible in order to minimize benefit costs.

7. Verify your Statement of Experience Rating Charges.

8. Check your Tax Rate.

9. File all reports and pay all taxes when due.

10. Fully participate in the Department’s New Hire Program.