Play Meter

made, the benefits will be paid . Other
states send a form asking the
employer to state the reason for
termination .
A worker who voluntarily quits is
not eligible for unemployment insur-
ance benefits in most states, if not all .
Also , benefits will be denied for wilful
misconduct , refusal to follow orders,
being disruptive , stealing , use of foul
language , and repeated absentee-
ism , among other reasons .
When the form is received it is
imperative that someone in authority,
either the owner-manager , partner,
or corporate officer, have the final
say in what answer is to be given .
After all , the one in authority has to
sign the form so why should
something as important as this be
delegated to an office clerk, or even
the firm's bookkeeper?
Hundreds , even thousands of
dollars , hinge on the proper filing of
the claims form . In the hypothetical
case of a small business , we saw how
one error led to an increase in costs
likely to exceed $3000 .
Something to consider is that the
objection to an ex-worker collecting
or not collecting is not binding on the
ex-worker . If denied benefits , the
former employee can ask for a
hearing at which time both former
employee and employer will appear
before an examining officer in a
hearing , representing in effect, a trial.
Likewise , after an employer files
an objection, an ex-worker can be
granted benefits and the employer
has the same opportunity to ask for a
hearing to try to overturn the
decision .
The hearing examiner, sometimes
called a referee, will render a
decision , copies of which will be
mailed to both parties .
Usually this settles the matter
because legal fees to appeal an
adverse decision are likely to be
excessive in view of the dollar
amounts involved .
PCS Reports Ltd . of New York
City conducted an extensive study of
1500 benefit claim case histories.
The finding was the American
businesses spend nearly 40% more
than is necessary for state unem-
ployment insurance contributions
because of ignorance , loose controls
and sloppy record keeping .
Roy Johnson, president of this
tax consulting tirm , in a telephone
interview with this writer said : "Most
of the dollar waste is attributable to
management carelessness and this
kind of laxity attacks the work ethic
even if no fraud is present or
intended .
"In many instances , the people
who handle the unemployment
benefit paperwork for an employer
simply don't know how the system
works and therefore have no incen-
tive to challenge the claims of
ex-workers who are not legally
entitled to benefits."
The illustrated case was for a
relatively small business. Yours may
be smaller or larger ; but, either way,
you can see how these figures could
relate to your own tax expense and
how your firm could make mistakes
under the same or similar circum-
stances .
Each state unemployment insur-
ance program has printed literature
available to employers spelling out
exactly who is eligible for benefits and
under what conditions benefits can
be withheld . Also, these booklets
advise the means by which a claim
award can be challenged at a local
office hearing , with no legal expenses
involved .
In some cases it will be necessary
to bring along a company employee
to testify with respect to charges of
misconduct - gambling or drinking
on premises , refusal to follow
instructions, etc .
It is your hard -earned dollars, not
the state's , going down the drain . So
don 't let ex-workers who are ineligi-
ble collect. Plug that gap and your
bottom line on the profit and loss
statement will not have an unneces-
sary bite taken out of it .
Why?
Why do you suppose mOle opelQtols leQd
PIQY metel thQn Qny othel
industlY-IelQted tlQde publicQtion?
We think it must have something to do with the fact that
Play mete, Is Independently-owned and
honest with Its leade,s.
111m
PLAY METER ,
July, 1979
75