UNEMPLOYMENT FRAUD IS PREVENTABLE!
Help us eliminate improper payments by learning and following the rules. It’s Your Job to Know!
Think of Unemployment Insurance (UI) as You Would Any Insurance Policy.
Think of UI as an insurance policy like all the others. Just like your other coverage, the more claims that are filed, the higher your insurance premium. It’s really the same for unemployment insurance.
More than that, Unemployment Insurance benefits help:
- Lessen the hardships due to involuntary unemployment.
- Lessen the need for public assistance.
- Maintain a steady workforce.
- Stabilize the purchasing power and the economy in the area.
After An Employee Is Separated, What Is Required Of Me?
Employers are required to complete a separation notice (Form LWC 77) for a former employee within 3 days after the employee leaves your business. A copy of the completed Form LWC 77 must also be given to the employee at the time of separation or mailed to his/her last known address within those 3 days. It’s easy to do and it benefits you. This process can be completed online at www.louisianaworks.net/hire.
You’ll need the company’s seven digit Unemployment Employer Account Number (NOT FEIN), which can be found on your most recent quarterly benefit charge statement.
Do You Need to File An Employee Separation Notice (Form 77)?
Your UI Tax Rate Impacts Your Bottom Line
One of the most important ways you can protect your bottom line is to “take care of business” any time you receive a request for information from the Louisiana Workforce Commission. Without the appropriate information from you, inaccurate eligibility decisions may be made. Submitting information completely and timely prevents improper payments, which ultimately impacts your tax rate.
What makes my tax rate go up or down?
- Amount of Unemployment Insurance benefits paid to former employees
- Increases or decreases in payroll
Remember, YOU can control your rate by responding to all requests for information in a timely manner.
Why does this affect my bottom line?
- Because, when you pay your state UI taxes each quarter, the money is credited to your reserve account in the UI Trust Fund.
- When eligible claims are paid, those reserve funds are reduced.
- This reduction in the reserve will increase your tax rate.
- Only employers contribute, not employees.
THAT IMPACTS YOUR BOTTOM LINE!
Deadline To Notify The Louisiana Workforce Commission Of New Hires
It’s 20 days after the date of hire. Both federal law and Louisiana law require employers to report newly hired and re-hired employees to the Louisiana Directory of New Hires. This information goes into a national database called the National Directory of New Hires (NDNH). This critical information is used by the Louisiana Workforce Commission to track when people go to work and when they no longer qualify for UI benefits. This helps reduce improper payments and ultimately reduces the amount of money you pay for UI insurance. That’s why it’s so important for you to timely file this information at https://newhire-reporting.com/la-newhire /logon.aspx. This site is maintained by the Department of Children and Family Services.
Do You Need To Report A New Hire?
What is Required When a Claim is Filed?
When a claim is filed by a former employee, you will be hearing from us. Depending on when the employee last worked for you, you will be sent either a Notice of Claim Filed or a Notice to Base Period Employers. Both forms request information from you about when and why the employee left, which we compare against what the employee has said. It is important for you to respond within 10 days of the mail date on the form – otherwise, we have to make decisions based on the information we have.
IMPORTANT: Use of a third-party administrator does NOT alleviate an employer’s responsibility to provide required information on a separation.
How Do I Provide The Best Evidence Available?
It begins and ends with documentation. Hopefully, you have an employee handbook in place, your employee has acknowledged receipt of your policies by signing it, and you have documented the employee’s file along the way. Copies of any information that you have – employee statements (resignation or other), witness statements, video evidence, accounting records, etc. – regarding why the employee no longer works for you should be sent with your separation information response. Fax all related documentation to Adjudication Support at (225) 346-6068.
Two important points:
- Send the requested information timely (within 10 days).
- Make sure your response is accurate and complete.
If your response comes to us late or is missing requested information, you may not be allowed to request a non-charge of benefits, or you could lose appeal rights on the claim.
When We Ask for Information, Be Sure to Respond Quickly!
Often during the adjudication of a claim, additional information is needed in order to make a just decision. Please respond to ALL requests for information. As we make determinations regarding benefits, we send a copy of the notices going to the claimant to the employer who will be liable for those benefits. Be sure to review those determinations carefully in order to exercise your appeal rights. https://itsyourjobtoknow.com/wp-admin/admin.php?page=theme_options#advanced
Also, we may request detailed earnings information when investigating a claim that has already been processed to see if benefits were improperly paid. If you receive an investigations mailer, be sure to respond as quickly as you can. You can respond online by going to the Louisiana Workforce Commission website, www.louisianaworks.net/hire, and select Online Services (top center of the home page), then under “For Employers,” click “Respond to an Affidavit of Earnings Form.” Setting up your profile for online responses and email notifications is quick and easy.
When LWC Investigates a Claim:
- We send a copy of notices going to the claimant to the employer who will be liable for those benefits.
- It’s important for you to review those carefully to exercise your rights to appeal.
- We may request detailed earnings information.
- Respond quickly if you receive an investigations mailer.
- You may respond online.
- Setting up your profile is quick and easy.
Do You Need To Respond To An Affidavit of Earnings Form?
How Do I Report Someone Improperly Drawing UI benefits?
It is in the best interest of all employers to protect the UI Trust Fund by reporting fraud. We recommend you do so using the online form that can be found at http://www.laworks.net/UnemploymentInsurance/UI_ReportClaimantFraud.asp.
The Louisiana Workforce Commission aggressively investigates all fraud tips and complaints submitted to our office. To report someone you suspect may be committing Unemployment Insurance fraud, complete the information and press the submit button. You may choose to submit this information anonymously; however, doing so may limit our ability to effectively investigate the situation.
Do You Know Someone Working And Getting Unemployment?
Do You Suspect An Employer May Be Committing Unemployment Insurance Tax Fraud?
Tips To Potentially Reduce Your Unemployment Tax Rate.
- Screen job candidates carefully.
- Have an employee handbook with company policies and procedures and have each employee acknowledge receipt by signing on the dotted line.
- You must report new hires and rehires to the Louisiana Directory of New Hires within 20 days of hire. This helps us confirm whether claimants are working, helps eliminate improper UI benefit payments, and improves your bottom line by reducing UI costs.
- Maintain a filing system and documentation on each employee. It is important to document, document, document.
- If termination is necessary, your documentation will protect you throughout the appeal process.
- It is always helpful to conduct an exit interview with a separating employee and to document the information discussed.
- File form LWC 77 “Employee Separation Notice” within 3 days when an employee leaves under any circumstances. Fax all related documentation to Adjudication Support at (225) 346-6068.
- Let us help you. We can do that only if you promptly answer ALL notices we send you, especially Notices of Claim Filed and Notices to Base Period Employers.
- To protect your bottom line, promptly follow through with the appeal process if you do not agree with a determination (directions are printed on the determination). Keep a copy of all submissions.
- Carefully check your Quarterly Statement of Benefit Charges. Any erroneous charges should be reported to the Louisiana Workforce Commission within 30 days from the mailing date. That’s the review period.