Challenging The Unemployment Commission

Sometimes for sport I appeal a different employment related issue that impacts our bottom line. This habit over the past 25 years has taken me before such glamour spots as the Industrial Commission of Ohio in Columbus, the Sales Tax Commission in Akron and many visits to Job and Family Services in Youngstown.

My most recent challenge was to the Ohio Unemployment Review Commission in Columbus after I decided in November 2006 to question the method by which the state was calculating our 2007 Contribution Rate. I did the same for 2008 because the 2007 issue had yet to be set for a hearing. Nearly 21 months later, my hearing date has arrived for both years.

For those of you that do not get involved with the unemployment compensation issue, it is a calculation that even small changes can be quite costly to your business. Experienced rated employees have an account that tracks both your contributions to the fund and the payments out of the fund made by the state to unemployed workers.

Your balance is computed as a percentage of your taxable payroll for the past three years. That percentage corresponds to a rate table that determines your contribution rate. It behooves you to be aggressive in monitoring your account. A contribution rate increase of just 1% can mean $100,000/year in increased payroll tax cost.

The state of Ohio, as part of the system, has created the mutualized account. This is kind of a unemployment compensation limbo for charges the state cannot seem to find a place. We all contribute to this fund as part of our overall contribution rate. The part the state tells us about was .2% in 2008. This is on the rate notice you received at the end of 2007. The other part of your mutualized account contribution, the state does not tell you about was .45% in 2007. This is buried in ORC Section 4141.25 somewhere and requires a Ph.D. in math to understand.

This all gets to the crux of my appeal. Besides not telling you how much of your contribution is being diverted to the mutual fund, you do not receive credit for any of these payments when your yearly contribution rate is determined.

My advice to all employers is to take the time to understand how your Unemployment Compensation Rate is calculated and how you can lower it by challenging claims.

Stay tuned...Next issue I'll let you know how I made out.

RAS President Tackles Minimum Wage, The EFCA And The UC Crisis

Minimum Wage
The Federal Minimum Wage increased to $6.55/hour on July 24. This is still lower than the $7/hour Ohio rate approved by voters two years ago. The Federal rate will move to $7.25/hour next year and the Ohio rate will be adjusted for inflation on January 1, 2009. Stay Tuned.

Equal Pay
Congress is set to vote on the "Paycheck Fairness Act." Among other things, it will eliminate caps on equal pay awards, facilitate class action lawsuits, eliminate employer justification for fair pay disparities and allow all employees to openly discuss their salaries with others. It's Senate sponsored by Hillary Clinton...enough said. Visit Pay-Equality r for more information.

Union Certification
The Employee Free Choice Act (Card Check) would eliminate the expense and worker protection of Secret Ballot Union Elections. It becomes possible that unions can become certified without any elections at all. Learn more by visiting Card Check.

Lucky Winners
The winner of last month's contest for two tickets to the Bridgestone Invitational was Vance Henke, Production Superintendent at RR Donnelly. For visiting our Web site, Mary Jane Hannahs, Employment Specialist at Kent State, received at $50 gas card. Congratulations!

UC Crisis
We are all thrilled to learn that the state unemployment fund is facing a crisis. The fund could run dry by early next year and be $200 million in the red by March 2009. Look for the taxable wage base to be increased from $9,000 to $11,000 and for a .07% surcharge to be levied.
Maybe we should lower benefits and make people work for their checks?