As the coronavirus pandemic swept with a vengeance across the United States, the national unemployment rate soared higher in a three-month period (from March to June) than it did in two years of the Great Recession. In this historic context, unemployment insurance is providing the support needed to keep people financially afloat until they can return to work following layoffs, furloughs, shutdowns and reduced hours.
As an employer, you may be overwhelmed with the need to process burgeoning numbers of unemployment insurance claims at this time. To make matters even more complicated, numerous changes have occurred in related state laws as a result of the pandemic. For instance, in Alabama:
- Employers experiencing coronavirus-related shutdowns are encouraged to file partial unemployment benefit claims on behalf of employees who have been laid off but whom they plan to rehire for the same position. Charges will be waived for these cases and employers’ experience ratings will not be affected.
- Employers who do not file partial claims are encouraged to waive their right to respond to any Request for Separation (BEN 241). BEN 241s will still be mailed to companies, but employers don’t have to respond to them if they notify the Department of Labor that they have waived this right.
What’s the Solution?
Working with a professional employer organization (PEO) offers a smart business strategy as you deal with pandemic-related unemployment insurance claims and issues. For now and for the long term, a PEO can function as an off-site HR department for some or all of your time-consuming yet vital talent management needs.
- According to the National Association of Professional Employer Organizations (NAPEO), the annual ROI from cost savings of using a PEO averages out at 27.2 percent. This means that for every $1,000 spent on PEO services, your company saves $1,272, yielding a net benefit of $272.
- In addition to assistance with unemployment claims, you’ll realize myriad other benefits as a result of your PEO partnership. These would encompass areas including lower personnel costs, more competitive benefits, and expert guidance on compliance and risk management, hiring, retention, and more.
Looking For Ways To Be More Efficient? We’d Love To Help!
Lyons HR is a PEO accredited by the Employer Services Assurance Corporation (ESAC) and certified by the Internal Revenue Service (IRS), ensuring that our clients receive the highest level of service with demonstrated financial security. We’re proud to be the first PEO in the country to earn IRS certification. To learn more about how we can help with unemployment insurance and your other talent management needs, contact us today.