DatelineJune2011

September 2011

Premium Rate notices mailed for Rate Year 2011-2012

By now, Tennessee employers should have received their annual unemployment insurance Premium Rate notice. Tennessee’s rate year begins on July 1, and the notices informed employers of their premium rate for the third and fourth calendar quarters of 2011 based on the rates present on Rate Table 1.

New businesses within certain industries are subject to premium rates other than the standard 2.7% new employer rate. This rate year, those industries are

Mining and Extraction, 6.6%
Construction, 8.6%
Manufacturing (NAICS sector 32), 6.6%
Manufacturing (NAICS sector 33), 9.1%

If you have any questions about the premium rate assigned to your employer account, contact the rate specialists in the Employer Services Unit at (615)741-3246.

Enhancements made to Tennessee Premium and Wage
Reporting System (TNPAWS)

The Tennessee Premium and Wage Reporting System (TNPAWS) is an Internet-based method of filing the quarterly Premium and Wage Reports. The TNPAWS website is located at http://tdlwd.tn.gov/tnpaws/ and is available at no charge to users. In order to use TNPAWS, employers must have an active Employer Account Number and corresponding Access Code.

The Access Code is assigned by the department and changes in the first quarter of each calendar year. The Access Code is printed on the pre-printed Premium Report or the reminder employers receive in lieu of the report. Users may now retrieve the current year’s Access Code by answering one of two security questions online. We hope that employers will enjoy the added convenience of retrieving their Access Code online.

TNPAWS has also been redesigned to allow employers to upload a file containing the wage information of their employees. Two file formats, which are explained on the web site, are currently accepted by TNPAWS. If uploading a file, TNPAWS will verify the file format is correct. In the event that errors are discovered in the file format, TNPAWS will provide users with a list of all errors and the nature of the errors. Once the file upload process is completed, employers are prompted to complete the filing process.

If you have questions about the operation of TNPAWS, please contact a representative by calling the Employer Accounts section at (615)741-0930.

Avoid unnecessary Benefit Charges

As an employer, you may have had the experience of receiving a card in the mail from the Benefit Charge Unit stating that someone who left your employment several months or even a year ago has filed for unemployment. This is your Notice of Claim Filed Card. As a base period employer, the benefits drawn by the former employee could result in charges to your account. This can be frustrating and confusing. The purpose of the Notice of Claim Filed Card is to provide you with an opportunity to request that your account not be charged for former employees who left without good cause but, there is a process that must be followed.

When a claim is filed for unemployment, a notification card (LB-502) is sent to all base period employers at the address on the associated unemployment tax account. You are a base period employer if you employed the person filing the claim any time during the first four of the last five completed calendar quarters prior to the date the claim is filed. In some circumstances, the base period is the last four completed quarters. If you are not the last employer the person worked for, but did employ them during the base period, you will receive a two-part notification card. To request a non-charge, complete the State Copy and return it to the Benefit Charge Unit by the return date noted on the card.

It is imperative that you complete all required fields on the card. It is required that you include the last date the person provided services for you, whether the person was discharged or voluntarily quit, and a brief statement giving the reason for the discharge or quit. You may also include any documentation regarding the reason for separation that you feel supports your request. Requests for non-charges that are not submitted as timely may not be considered. If you feel that you received the card too late to meet the return date and still wish to pursue it, please contact the Benefit Charge Unit for assistance.

Separating base period employers may not request a non-charge. In the event that the claim for unemployment benefits is approved, your account will be charged. If there was an issue involved in the claim and you were the separating employer, you will receive a one-part Notice of Claim Filed Card advising you to “Refer to Agency Decision”, which will be mailed separately. Although a non-charge will not be an option in these instances, you will be afforded the opportunity to file an appeal and have the issue re-examined by an Unemployment Hearing Officer in an Appeals Tribunal hearing. If you were the separating employer and it is determined that the claimant is separated due to lack of work, a message stating “Lack of Work – Approved Claim” will appear on the card.The Benefit Charge Unit issues quarterly statements reflecting charges to tax-paying employer accounts during the previous quarter. This is not a bill and is sent for your business records. The only way to protect your tax rate from the negative effects of unemployment claims filed by former employees who left your employment without good cause is by the timely filing of non-charge requests. Please contact the Benefit Charge Unit with related questions and concerns at (615)741-2223.

Tax Credit program extended

The Tax Relief, UI Reauthorization, and Job Creation Act of 2010 extended the Work Opportunity Tax Credit (WOTC) program through December 31, 2011.

The WOTC program provides a potential tax credit for employers for up to $2,400 per employee for one year. When hiring a long-term welfare recipient, an employer’s tax credit can be as much as $9,000 over a two-year period.

To take advantage of the tax credit program, the employer and employee must complete two forms – the IRS form 8850 (http://www.tn.gov/labor-wfd/forms/IRS_Form_8850.pdf) and the US Department of Labor form ETA9061 (http://www.tn.gov/labor-wfd/forms/ETA_9061.pdf). These forms must be postmarked and sent to the Tennessee Department of Labor and Workforce Development no later than 28 calendar days following the employee’s starting date of employment.

Tennessee will finish the current fiscal year with an increase in number of certifications of 7.5 percent over last year, which was the state’s highest year on record. Tennessee will have 50,000 certifications this fiscal year.

For more information about the WOTC program, contact Roger Littlejohn, state WOTC coordinator, at Roger.Littlejohn@tn.gov or (615)253-6664.

Numbers

TN jobless rate
(August 2011)

9.7 %

TN jobless rate
(August 2010)

9.4 %

U.S. jobless rate
(August 2011)

9.1 %

U.S. jobless rate
(August 2010)

9.6 %

U.I. Trust Fund
(1st week of September 2011)

$381,231,902

U.I. Trust Fund
(1st week of September 2010)

$231,829,314

Is an employer's account liable for employees who are temporary?

Q. I hired an individual to fill in for someone. When I no longer have work for the temporary employee, will I be charged if he files for unemployment compensation?

A. Yes. Regardless of the length of time someone works for your business or the circumstances under which that person is hired, you will be liable for benefits paid. Neither the length of time the person is employed by you nor the temporary status of the position has any bearing on your liability for unemployment benefits. The amount of benefits you are liable for will be proportionate to the amount of base period wages you paid the claimant that were used to establish the claim. For example, if you paid 10% of the wages in the claimant’s base period, you will be liable for 10% of the benefits. If you employed the claimant for a short time, the wages paid by you may not be included in the base period at all. Under these circumstances, you will be not be charged for any of the benefits drawn for this particular claim during the ensuing 52-week benefit year that is established the day the claim is filed. You may, however, be charged proportionately for benefits received by the claimant in a subsequent benefit year.

Q. I told this employee at the time of hire that this would be a temporary job. Will he still be eligible for benefits when the job is completed?

A. Yes. Even though it was made known at the time of hire that this was a temporary job, as soon as work is not available, he becomes eligible to apply for unemployment compensation and your reserve account becomes liable for charges if he is approved for benefits.

Source: Unemployment Questions – Benefit Charges
TDLWD Web site

Comments or Questions? Contact Martha Deacon at martha.deacon@tn.gov.
Current and archived issues of the Dateline newsletter can be found at www.tennessee.gov/labor-wfd/dateline/2000/index.html .
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