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7 Frequently Asked Questions Regarding Unemployment

Shannon Sha, Client Services Administrator

Questions regarding unemployment are what keep our phones ringing day in and day out, and for good reason.  Unemployment can be tricky for any business, and we are here to help.  We’ve put together some helpful advice on the frequently asked questions we get, and to make them a bit more digestible, we’ve put them in real-life examples.

FAQs regarding Unemployment

1. Does PrestigePEO contest every unemployment claim as a matter of practice?

Yes, every single one. If the business does not wish to contest, they can let their Human Resources Business Partner know.

2. Does PrestigePEO notify the business about every unemployment claim that they handle?

No. If the question is sent by the Department of Labor and it can be answered with the information already in PrestigePRO, Prestige will not reach out.

3. Why does Prestige sometimes send the business an email with an unemployment question? And why do the questions seem so random?

The state generates questions for every unemployment claim. Prestige makes no judgments about those questions, but they do sometimes seem random. Prestige does its best to answer all the state’s questions. If information related to the questions is not in PrestigePRO, Prestige will email the business to get the most accurate information for the unemployment claims. These questions should be answered in a timely fashion as the state implements strict deadlines for every claim!

4. If Jane Doe is still working for ABC company, why did ABC get an email related to unemployment for Jane?

There have been occasional fraudulent claims initiated. When an unemployment claim comes in for an employee who is marked “Active” in PrestigePRO, Prestige will email ABC company asking for confirmation of current employment. For employees still working, clients are encouraged to notify employees of potential fraudulent unemployment claims in their name.

5. What if ABC company hasn’t processed a termination in PrestigePRO yet, and Prestige receives an unemployment claim for the employee?

When Prestige gets a claim from an employee who is marked “Active” in PrestigePRO, Prestige will email the client to find out if in fact the employee is still currently working for the company. When Prestige is informed that the employee has been terminated, Prestige will process the claim accordingly and advise the client to process the termination at their earliest convenience.

6. If Jane Doe resigned, she is not eligible for unemployment insurance, is she?

The federal-state Unemployment Insurance system (UI) helps many people who have lost their jobs by temporarily replacing part of their wages while they look for work.

Therefore, in Jane Doe’s case, the state makes the final determination regarding unemployment insurance eligibility. Resignation may disqualify an applicant for unemployment. That is why Prestige requests the most accurate information be provided regarding terminations.

7. And what if John Doe violated a company policy, he is not eligible for unemployment insurance, is he?

Again, the state makes the final determination regarding unemployment insurance eligibility. Violation of company policy may disqualify an applicant for unemployment. When there is a violation of company policy, the state does request details regarding:

  • the date/time/place of the incident
  • presence of witnesses
  • specific policy violated by the employee
  • whether or not the employee knew about the company policy at the time of the incident
  • whether the employee admitted to the violation

If an employee violates company policy and it leads to termination, Prestige requests that the business email their HR Business Partner with details so that they can provide the information to the team processing unemployment claims.

We completely understand how difficult it can be to not only manage your current employees, but also try to figure out unemployment and all the complexities it brings.  Partnering with a PEO means that processing unemployment claims does not have to be confusing or time-consuming.  Prestige will handle all the questions from the state and the Department of Labor.  Additionally, if PrestigePRO is current, most processing can be completed without any back and more forth. Just another incredible reason to trust in your PEO! To learn more about the other ways a PEO can support your business, visit our most recent blog, Top 10 things a PEO can do for your business.