Formal warnings result in huge overpayments

The U.S. Government Accountability Office (GAO) recently released their study examining unemployment overpayments on a national level. The study took a very targeted view of states in which claimants are issued formal “warnings” for not meeting their work search requirements. The results were staggering, as it was found that $1.6 billion (of $3.9B total)  in over overpaid unemployment benefits in 2016 were made to claimants that were in violation of their requirement to actively search for work.


The Department of Labor clearly affirms and acknowledged these findings, and is working to draft guidance for state agencies. However, they cite the challenges they have in efficiently implementing a timely system to identify and allow claimant recourse before suspending payments.

As UTCA has always endeavored to protect employers from unwarranted UI costs at all levels, this study is troubling. Any overpayment  an employer incurs can impact an experience rating or direct payments made to a state UI agency. Although UTCA actively tracks any and all charges to our employers, and diligently protests erroneous charges, there is no direct insight into the agencies tracking of a claimant’s requirement to search for work. The costly inefficiencies identified in the study lie within the state agencies. We will continue to track the developments as the Department of Labor looks to find a unified solution to this daunting overpayment issue.

What does this newly-quantified study mean to employers? The GAO’s study tells us it is  more crucial than ever before for employers to be aware and pro-active in their approach to managing the unemployment. Creating a system to ensure you are minimizing your UI cost factors within every means you can control is the key.

If you are an employer unsure of the efficiency of your current UI program, or want the peace of mind to know they are taking advantage of all their opportunities to control cost, contact us today. There is never a fee for your initial assessment.


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Major system reform looming for PA unemployment




Pennsylvania’s unemployment has been a hot topic of discussion in recent weeks. Not in the broad, glowing sense that we are seeing cheery unemployment news covered nationally. While PA is enjoying a decline in their rates of unemployment (4.7 percent as of October) , they are still a tick higher than the current U.S. average (4.1 percent). The real news is coming from Harrisburg, as recently passed legislation will fuel major changes in the state’s administration of unemployment services.

After effective legislation in 2016, several state UC service centers  were closed and the PA Dept. of Labor staff was depleted by 500 workers. In tandem with reliance on antiquated technology, the productivity and responses within the unemployment compensation program have suffered. The performance issues are well documented here. Fast forward to this past week, the PA House has officially passed resultant legislation to not only return employees to the ranks, but finally push through the online system conversions that have been in play for years. Rejoice!

With most UI news being centralized around claimants and the relation to state and federal economy, the employer’s experience is often lost. Shocker.  Fortunately, even amidst service strain at the PA Department of Labor, UTCA experienced little disruption to the employer-based response and adjudication process. Our established agent presence, reputation and relationships at the state allowed us to continue working efficiently to advocate for our employers.

So what does the change legislation change mean for employers?

The increased workforce at the Pennsylvania  unemployment compensation service centers can only mean good things for employers and claimants alike.

Likewise, in our experience, the conversion to online-based claims systems ultimately benefit everyone.

But pump the breaks.

The transition process can be a bit challenging as states and their employees roll out the platform. Employers managing their UI programs should remain hyper vigilant of any communication from the state when the system gets closer to implementation. Many system launches have left employers ill-informed while eliminating paper claims, without knowing they are responsible for registering and regularly monitoring the new web-based platforms. This lack of awareness can lead to a serious risk in increased charge activity for missed claims, and benefit integrity compliance penalties. We have engaged several prospective employers over the last five years that thought their claim activity had pleasantly (and magically) disappeared. When in reality, they were never made aware of the “switch” and had been incurring copious claims and charges. For Pennsylvania employers already struggling to manage unemployment, be “on-guard” as the online system develops further. UTCA will continue to actively engage the PA Dept. of Labor to stay abreast of new developments, while continuing to champion our employers through whatever hiccups new technology may pose!

As always, if you are an employer challenged by managing unemployment (or an inefficient UI vendor), don’t hesitate to contact us. We’re here to listen, not push.

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Knowledge is power- Don’t miss EANE’s Employment Law Conference on 11/2!

Please join us for The Employers Association of the Northeast (EANE) Employment Law Conference  on November 2nd at The Sheraton in Springfield MA! 

You’ll learn valuable best practices on a variety of current HR hot topics like creating a workplace violence prevention plan, collaborating with boomers on retirement and succession planning, stay interviews to improve retention and communicating with your team about high deductible insurance plans. UTCA will be a featured presenter providing attendees with valuable guidance to manage their unemployment programs more effectively. Early bird discount ends 10/13/17, so take advantage of this great resource. For more information on the program and registration click here !

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UTCA Celebrates 20th Annual Client Update!

This year marked a special milestone for UTCA: The 20th Annual Client Update! The event, held October 5th at the Sheraton Springfield, was an outstanding success with excellent turnout and a fun and educational program enjoyed by all. Employers from across the region gathered for the conference which included guest speakers and a year in review of UI legislative trends, projections, and employment law updates.

A perennial hit, UTCA staff performed their interactive game show  “Are You Smarter Than A Review Examiner?” The show was emceed by Director of Operations Meghan Avery and VP of Client Services Tim Phelan and even featured music from Disney’s Frozen.

In addition to the featured program content, attendees engaged with the key partners sponsoring this year’s update. Offering their own unique value and advice to the participants, these respected employer service providers added a new dimension to the event. The valued sponsors included Checkwriters Payroll, Employer’s Association of New England, Paragus Strategic IT, and Johnson & Hill Staffing Services.

Event speakers included Attorney Meghan Sullivan, a highly regarded employment law attorney from the firm Sullivan, Hayes, & Quinn. Atty. Sullivan closed the event with her annual Employment Law Update which featured insight on medical marijuana, the American’s with Disabilities Act, and evolving legal trends important for all employers.

UTCA would like to thank all who attended and hope to see you back for the 21st Annual Update next fall!

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Arkansas’ Employers Could See Significant Reductions in Their Unemployment Taxes

Effective January 2018, most of the provisions in House Bill 1405 will take effect – one of those being the reduction of the unemployment insurance benefits claim period from five months to four months. The combined efforts of this provision and others noted in this bill plan to reduce Arkansas’ Employers’ insurance taxes by $50 million annually. The local Fort Smith Regional Chamber of Commerce hopes that it will also encourage those drawing unemployment benefits to look for work faster.

Click here for a summary of HB 1405: 

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Georgia’s Jobless Rate Decreases as Job Creation Rate Rises

The jobless rate in Georgia has fallen to its lowest levels in almost 10 years as the State’s Labor Industry is creating jobs and putting a record number of people back to work. In the month of June alone, over 27,000 jobs were created which is almost double the state’s normal job creation rate.

Read the full story here:

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Tennessee Sets Internal Unemployment Rate Record

The state of Tennessee’s Department of Labor is setting records within their unemployment compensation program. Not only did they announce an historically low unemployment rate of 3.6%, but they are also paying out approved unemployment claims at a record rate due to recent system upgrades. According to the Department of Labor, the majority of people waiting for benefits are receiving their first payment within 10 days.

Read more about this story here:

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UTCA enhances industry-first claims management software

AdventiaUI affords increased compatibility, intuitive functionality and more robust reporting

Unemployment Tax Control Associates, Inc. (UTCA), a national unemployment insurance service provider based in Springfield, Mass. announced the successful launch of their proprietary claims software, AdventiaUI, noting many features and benefits for an improved user experience. The software allows for the secure, efficient and timely transmittal of unemployment claims data to meet state guidelines.

Their previous proprietary software solution was revolutionary and remarkable in its own right; still, AdventiaUI is the natural evolution of the software, taking in to account customer feedback, needs and emerging industry and technological advancements. Compatible with all modern web browsers, AdventiaUI affords users intuitive layout and usability for immediate account changes, real-time reporting and improved claim requesting procedures. Perhaps most notably, the software interfaces with State Information Data Exchange (SIDES), allowing UTCA to manage even the largest of programs from national employers. A customized, proprietary interface improves SIDES response and ensures UTCA safeguards employers from unnecessary unemployment costs.

“We pride ourselves at UTCA on offering a client-centric approach to all of our interactions and claims processing,” said Meghan Avery, director of operations at UTCA. “As a highly trusted company, in a confusing industry, nothing pleases us more than reducing the costs and complexities of managing unemployment compensation programs for our clients, and AdventiaUI helps us accomplish both.”

Noreen Mickiewicz Hayes, assistant director of human resources at ServiceNet lauded UTCA and expressed resounding approval of AdventiaUI. “There was a seamless rollout of the new program,” she said. “I received all the information necessary to effectively transition to the new software, and when dealing with an unemployment insurance claim, time is understandably of the essence.”

She furthered, “I found the entire process to be easier, from log-in, data upload and transmission to the final report, every step of the process was easy to understand and follow.”

For more information about Unemployment Tax Control Associates, their service offerings or new software offering, AdventiaUI, contact UTCA today.

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Vermont Ruling Expands Employment Classification of Independent Contractors

In a recent ruling issued by the Vermont Supreme Court, owners of a limited liability company (LLC), can be considered an independent contractor even when they do not have any employees.

In a statement issued by the Commissioner of the Department of Labor, Lindsay Kurrle noted this ruling “provides a level of clarity that we have not had previously.” She went on to state, “The classification of independent contractors is an issue that the department is committed to — both ensuring that workers are properly protected, and that businesses who want to utilize independent contractors are doing so with confidence and predictability of how the law is applied.”

Read more about this ruling here:,511798

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Pennsylvania DOL Announces Amnesty Program

The Pennsylvania Department of Labor & Industry announced an unemployment compensation amnesty program entitled “Make it Right” on July 1, 2017. The program runs through September 30, 2017 and will not be an annual occurrence.

Parties eligible to participate in the program are claimants with overpayments established on or before Dec. 31, 2016; employers with unpaid contributions through the third quarter of 2016; and employers with unpaid reimbursements due on or before Oct. 31, 2016.

During the three-month amnesty, at fault claimants (who knowingly gave false information that allowed them to receive more benefits than they were entitled to) will receive a discount of half off interest accrued on their balances. They will be required to pay the full overpayment balance, lien costs, a 15 percent penalty and the remaining 50 percent interest. Non-fault claimants (who unknowingly accepted more compensation than they were entitled to) will receive a half-off discount on their entire overpayment balance. Employers will owe all contribution or reimbursement balances, lien costs and half of the interest accrued.

According to Pennsylvania DOL Secretary Kathy Manderino, “It’s an opportunity for claimants and for employers to do the right thing, to pay what they owe, and to end up with a clean slate.”

Visit the program’s website for more details:

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