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Electronic Separation Notice Addresses Overpayment of Unemployment Insurance

Wednesday, April 04, 2012 | 08:52am

Voluntary Program Streamlines Paper-Based Process


NASHVILLE – Employers can now respond electronically to requests for separation information regarding a claimant’s reason for separation when filing a claim for unemployment insurance.


Through the new State Information Data Exchange System (SIDES) E-Response, employers can exchange quality information quickly with the Department of Labor & Workforce Development, resulting in a more accurate claims-filing process.


“We’re pleased to be going live with SIDES E-Response, which is fast and paperless,” said Labor & Workforce Development Commissioner Karla Davis. “The new Web-based system saves costs to both employers and taxpayers, as inaccuracies and delays in submitting separation information is one of the main causes of unemployment insurance overpayments.”


SIDES E-Response is a free Web site through which employers and third-party administrators (TPAs) submit electronic responses to unemployment insurance information requests.  Initially unemployment insurance information related to job separation can be exchanged.  When a person files a claim for unemployment, the department sends a letter to the employer or TPA verifying the reason the claimant has given for separation and providing login information to SIDES E-Response. The employer then responds electronically with SIDES E-Response, which was previously accomplished by paper mail.


Staff time, paper work, and postage costs are reduced for the state and the employer when using SIDES E-Response. Additionally, SIDES E-Response provides an electronic, nationally standardized data format: unemployment insurance information requests from participating states are in the same standard format, and responses from employers and TPAs are in a standard format. The system includes data checks to ensure the exchange of complete and valid information. Accuracy and timeliness in transmitting information are improved, and the numbers of follow-up requests and appeals are also reduced.


Forty-two states will be using SIDES E-Response by the end of September. In 2013, earnings verification information and monetary and potential charge notices will be processed through SIDES E-Response.


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