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YOU AND THE TWCHow to manage your unemployment tax liability
TODAY’S TALK
TODAY’S TALK
• What unemployment tax is and how liability is established
TODAY’S TALK
• What unemployment tax is and how liability is established
• How someone becomes eligible for benefits
TODAY’S TALK
• What unemployment tax is and how liability is established
• How someone becomes eligible for benefits
• What you can do to reduce your exposure
TODAY’S TALK
Why bother?
TODAY’S TALK
Because a Two Point increase in your rate can cost you $180 per employee
annually for 3 Years
UNEMPLOYMENT TAX
UNEMPLOYMENT TAX
What it is
UNEMPLOYMENT TAX
What it is
A fixed percentage (your rate) of the first $9000 of an employee’s wages
UNEMPLOYMENT TAX
What it is
A fixed percentage (your rate) of the first $9000 of an employee’s wages
Paid quarterly until the $9000 earnings maximum is met
UNEMPLOYMENT TAX
UNEMPLOYMENT TAX
How liability is established
UNEMPLOYMENT TAX
How liability is established
Rate is set annually
UNEMPLOYMENT TAX
How liability is established
Rate is set annually
Rate is based on assessments and charge-backs to your account for the previous 36 months
A PERSON RECEIVES BENEFITS WHEN...
A PERSON RECEIVES BENEFITS WHEN...
Under certain conditions, he/she becomes unemployed
A PERSON RECEIVES BENEFITS WHEN...
Under certain conditions, he/she becomes unemployed
➡ Excludes misconduct
MISCONDUCT DEFINED
source: Texas Workforce Commission Website, retrieved August 1, 2010
http://www.twc.state.tx.us/ui/bnfts/employer2.html#misconduct
MISCONDUCT DEFINED
• mismanagement of a position of employment by action or inaction
source: Texas Workforce Commission Website, retrieved August 1, 2010
http://www.twc.state.tx.us/ui/bnfts/employer2.html#misconduct
MISCONDUCT DEFINED
• mismanagement of a position of employment by action or inaction
• neglect that places in jeopardy the lives or property of others
source: Texas Workforce Commission Website, retrieved August 1, 2010
http://www.twc.state.tx.us/ui/bnfts/employer2.html#misconduct
MISCONDUCT DEFINED
• mismanagement of a position of employment by action or inaction
• neglect that places in jeopardy the lives or property of others• intentional wrongdoing or malfeasance
source: Texas Workforce Commission Website, retrieved August 1, 2010
http://www.twc.state.tx.us/ui/bnfts/employer2.html#misconduct
MISCONDUCT DEFINED
• mismanagement of a position of employment by action or inaction
• neglect that places in jeopardy the lives or property of others• intentional wrongdoing or malfeasance
source: Texas Workforce Commission Website, retrieved August 1, 2010
http://www.twc.state.tx.us/ui/bnfts/employer2.html#misconduct
• violation of a policy or rule adopted to ensure orderly work and the safety of employees
MISCONDUCT ALWAYS COMES DOWN TO THIS:
MISCONDUCT ALWAYS COMES DOWN TO THIS:
• Did the applicant know or should they have known about the broken rule?
MISCONDUCT ALWAYS COMES DOWN TO THIS:
• Did the applicant know or should they have known about the broken rule?
AND
MISCONDUCT ALWAYS COMES DOWN TO THIS:
• Did the applicant know or should they have known about the broken rule?
AND
• Did the applicant know or should they have known that a violation could lead to termination?
YES, IT’S AT WILL EMPLOYMENT.
But you still have potential Federal and State Liability.
Ensure the applicant understands the rules and consequences.
Ensure the applicant understands the rules and consequences.
Maintain appropriate documentation.
THE APPLICATION
Application
THE APPLICATION• It’s a contract.
Application
THE APPLICATION• It’s a contract.
- Work status (full vs. part time)
Application
THE APPLICATION• It’s a contract.
- Work status (full vs. part time)- Work schedules (days & hours
available/not available for work, OT, etc.)
Application
THE APPLICATION• It’s a contract.
- Work status (full vs. part time)- Work schedules (days & hours
available/not available for work, OT, etc.)- Physical ability to perform job
Application
THE APPLICATION• It’s a contract.
- Work status (full vs. part time)- Work schedules (days & hours
available/not available for work, OT, etc.)- Physical ability to perform job- Availability of transportation
Application
THE APPLICATION• It’s a contract.
- Work status (full vs. part time)- Work schedules (days & hours
available/not available for work, OT, etc.)- Physical ability to perform job- Availability of transportation
• Once signed, it becomes the basis of your relationship.
Application
THE APPLICATION• It’s a contract.
- Work status (full vs. part time)- Work schedules (days & hours
available/not available for work, OT, etc.)- Physical ability to perform job- Availability of transportation
• Once signed, it becomes the basis of your relationship.
• Customize it to meet your business needs
Application
THE EMPLOYEE HANDBOOK
Application
EmployeeHandbook
THE EMPLOYEE HANDBOOK
• The rule book for work
Application
EmployeeHandbook
THE EMPLOYEE HANDBOOK
• The rule book for work• Should always include:
Application
EmployeeHandbook
THE EMPLOYEE HANDBOOK
• The rule book for work• Should always include:
- Rules of conduct and performance that, if violated, could cause a person to lose their job with and/or without prior warning
Application
EmployeeHandbook
THE EMPLOYEE HANDBOOK
• The rule book for work• Should always include:
- Rules of conduct and performance that, if violated, could cause a person to lose their job with and/or without prior warning
- An acknowledgement, when signed by new hire, attesting to their receipt and understanding of the rules
Application
EmployeeHandbook
THE ORIENTATION
Application
EmployeeHandbook
Orientation
THE ORIENTATION
• Your last opportunity to - discuss the handbook and any rules
or points of emphasis
Application
EmployeeHandbook
Orientation
THE ORIENTATION
• Your last opportunity to - discuss the handbook and any rules
or points of emphasis
- confirm understanding of the rules and your expectations
Application
EmployeeHandbook
Orientation
HOW TO DOCUMENTEverything must be in writing.
HOW TO DOCUMENT
1. Cite the rule that was broken.
Everything must be in writing.
HOW TO DOCUMENT
1. Cite the rule that was broken.
2. Reference the handbook and the employee’s acknowledgment.
Everything must be in writing.
HOW TO DOCUMENT
1. Cite the rule that was broken.
2. Reference the handbook and the employee’s acknowledgment.
3. Detail the relevant incident and include specific actions/words.
Everything must be in writing.
HOW TO DOCUMENT
1. Cite the rule that was broken.
2. Reference the handbook and the employee’s acknowledgment.
3. Detail the relevant incident and include specific actions/words.
4. Outline the consequences of another occurrence (potential termination).
Everything must be in writing.
HOW TO DOCUMENT
1. Cite the rule that was broken.
2. Reference the handbook and the employee’s acknowledgment.
3. Detail the relevant incident and include specific actions/words.
4. Outline the consequences of another occurrence (potential termination).
5. Have the employee acknowledge receipt of the communication in writing.
Everything must be in writing.
MISCONDUCT REVISITED
MISCONDUCT REVISITED
Did the applicant know about the rule?
MISCONDUCT REVISITED
Did the applicant know about the rule?
✓ You have a signed application,
MISCONDUCT REVISITED
Did the applicant know about the rule?
✓ You have a signed application,
✓ a handbook with signed acknowledgment from the applicant.
MISCONDUCT REVISITED
Did the applicant know about the rule?
✓ You have a signed application,
✓ a handbook with signed acknowledgment from the applicant.
✓ and acknowledgement of orientation in which the rules were discussed.
MISCONDUCT REVISITED
Did the applicant know about the rule?
✓ You have a signed application,
✓ a handbook with signed acknowledgment from the applicant.
✓ and acknowledgement of orientation in which the rules were discussed.
Did they know about the consequences?
MISCONDUCT REVISITED
Did the applicant know about the rule?
✓ You have a signed application,
✓ a handbook with signed acknowledgment from the applicant.
✓ and acknowledgement of orientation in which the rules were discussed.
Did they know about the consequences?
✓ You have a signed copy of the communication of consequences, indicating acknowledgement.
YOU AND YOUR LIABILITY
YOU AND YOUR LIABILITY
• Liability is based on the Employee’s Base Period
YOU AND YOUR LIABILITY
• Liability is based on the Employee’s Base Period
• Base period is defined by
• The first four of the last five completed calendar quarters of employment preceding the claim
YOU AND YOUR LIABILITY
more applicable version:
Your liability for any employee begins on the first day of the second full calendar quarter.
YOU AND YOUR LIABILITY
more applicable version:
Your liability for any employee begins on the first day of the second full calendar quarter.
You have 91-179 days to evaluate any new hire.
MISCONDUCT RE-REVISITED
MISCONDUCT RE-REVISITED
Fantasy
MISCONDUCT RE-REVISITED
Fantasy
You want to terminate someone for incompetence
MISCONDUCT RE-REVISITED
Fantasy
You want to terminate someone for incompetence
You cannot.
MISCONDUCT RE-REVISITED
Fantasy
You want to terminate someone for incompetence
You cannot.
If they are incompetent, why did you hire and keep them?
MISCONDUCT RE-REVISITED
Fantasy
You want to terminate someone for incompetence
You cannot.
If they are incompetent, why did you hire and keep them?
Fact
MISCONDUCT RE-REVISITED
Fantasy
You want to terminate someone for incompetence
You cannot.
If they are incompetent, why did you hire and keep them?
Fact
✓ You can terminate someone for failing to perform in a manner of which he/she is capable.
REMEMBER
REMEMBER
• When you are notified of a TWC Claim, the most important thing you can do is respond within the provided time frame.
REMEMBER
• When you are notified of a TWC Claim, the most important thing you can do is respond within the provided time frame.
• Respond with the documentation at your disposal. Verbal warnings are okay as long as they are documented in writing.
REMEMBER
• When you are notified of a TWC Claim, the most important thing you can do is respond within the provided time frame.
• Respond with the documentation at your disposal. Verbal warnings are okay as long as they are documented in writing.
• Ask for help – even if it’s from the TWC.
REMEMBER
• When you are notified of a TWC Claim, the most important thing you can do is respond within the provided time frame.
• Respond with the documentation at your disposal. Verbal warnings are okay as long as they are documented in writing.
• Ask for help – even if it’s from the TWC.
It’s all about the documentation.
THE BEST RESOURCE NO ONE KNOWS ABOUT (OR USES)
THE BEST RESOURCE NO ONE KNOWS ABOUT (OR USES)
The TWC
THE BEST RESOURCE NO ONE KNOWS ABOUT (OR USES)
The TWC
Labor
THE BEST RESOURCE NO ONE KNOWS ABOUT (OR USES)
The TWC
Labor Public
THE BEST RESOURCE NO ONE KNOWS ABOUT (OR USES)
The TWC
Labor Employers Public
THE BEST RESOURCE NO ONE KNOWS ABOUT (OR USES)
The TWC
Labor Employers Public
(800) 832-9394
a team of lawyers is standing by at:
FINALLY
FINALLY
• History tells us that on the first day of work, a new hire’s behavior is the best it will ever be.
FINALLY
• History tells us that on the first day of work, a new hire’s behavior is the best it will ever be.
• Look for early warning signs and address them ASAP.
FINALLY
• History tells us that on the first day of work, a new hire’s behavior is the best it will ever be.
• Look for early warning signs and address them ASAP.
• Make your cuts before you incur liability.
