The pandemic of 2020 (and beyond) has wreaked havoc on employers nationwide in so many ways. Finding enough staff, providing Personal Protective Equipment, and adjusting to supply chain shortages are just a few of the major problems companies face. There are also hidden problems that you may not even know are on the horizon.
While the federal government has decided to pick up the tab for hundreds of millions of dollars for unemployment benefits (Pandemic Unemployment Assistance and the CARES Act), the exact amount charged to your individual state accounts remains unknown.
How the State Determines What You Pay
Each state imposes an Unemployment Tax Rate to each employer. That rate determines how much money your company pays for each employee to keep the state fund solvent.
Here’s an example:
Taxable Wage Base is $20,000.00
Number of Employees is 50
Tax Rate is 7%
Result: You pay $1400.00 per employee for a total of $70,000.00
How Consultech Can Bring That Number Down
Consultech acts as your first line of defense in handling unemployment claims. We respond to claims, protest determinations, and attend hearings to stop former employees, who should not be entitled to benefits, from collecting.
How does this affect your bottom line?
If we can stop those who should not be collecting, it reduces your rate.
Back to Tax Rates. We can keep your rate lower by doing just what we stated above. If we keep your rate at 3%, your total payment in the example above is now $30,000.00
The best part? Our fees are a fraction of those savings. With our proprietary software and expertise, we keep our costs to a minimum and we pass that along to you!
Consultech’ s Other Services
- Did I mention that we are also the premier Independent Contractor Model defense company in the country? We are hired by the biggest players in the United States to consult, protect, and defend their IC business models.
- Need Insurance for your Independent Contractors? Our sister company, Consultech Insurance, has the best IC insurance package in the industry by combining all three insurance programs, Occupational Accident, Contingent Liability, and Workers Compensation Insurance under the same Insurance Carrier providing a guarantee “No Audit.”
All articles by Consultech are general and brief in nature to keep the reader engaged. Our articles are not to be used as legal advice in any way.