In Tuesday’s blog post, George Ports, CAI’s Senior Executive in Government Relations and Senior Advisor on CAI’s Advice and Counsel Team, imparted important information about North Carolina’s Unemployment Law dealing with attached claims. Check out part 1 here: http://bit.ly/18cOU0X. Read part 2, which focuses on guidelines and recommendations for filing attached claims, below.
Procedures for Filing Attached Claims
- Claims are filed electronically.
- Employer files are created by the DES for attached claims.
- The employer will receive an electronic response from the DES with the amount necessary to cover the cost of the attached claims (amount will only be for the projected number of weeks necessary).
- If the employer’s filing efforts are rejected due to a negative balance, a box “click here to make payment” appears and an amount should be displayed necessary to bring the employer’s account to zero and payment amount necessary to cover for the cost of the attached claims.
If employer is unsuccessful with the electronic filing, the DES tax department should be contacted.
- Once the employer’s file is created, the employer at the end of each week, opens the file and confirms or edits the number of hours worked and wages earned for that week so that the DES can calculate the amount of eligible unemployment benefits due to the employee.
(All payments to the DES for attached claims can be made by “e-checks” or by credit cards.)
Recommendations/ Options for Employers
Due to the limitations of one claim per year per employee and the requirement that each claim filed satisfy a week’s waiting period.
- If slow periods of work are anticipated, reduce the hours of the regular scheduled work week (example: 40 hours to 32 hours—60% of 32 = 19.2 hours. Employees who work at least this amount would not be eligible for attached claims but would receive some wages. The use of attached claims would be reserved for unexpected downturns when it is necessary to implement a temporary reduction in force). Reduced regular work weeks should be for a significant consecutive period.
- Employers could delay filing attached claims until multiple weeks of downturns are expected.
- If attached claims have been exhausted and subsequent reductions in force are necessary, permanently lay off employees with the understanding that if they are recalled, they will be paid a signing bonus (This is an incentive for employees to return even if they have secured other employment).
**IMPORTANT UPDATE**
The following is an excerpt from Assistant Secretary of Commerce Dale Folwell’s memorandum dated September 13, 2013 giving an update on complying with House Bill 4 including another option for employees and employers in light of the restrictions placed on attached claims:
Attached Claims Update
An employee whose employer will not be filing attached claims may file a claim for themselves.
Employees must meet the following requirements:
• File the initial claim and then file weekly certifications for each week benefits are requested.
• Report all earnings and payments.
• Be able and available for work during each week filed.
• Be actively seeking work during each week filed (regardless of hours worked).
Further information is provided in: NCUI 517Z: Information about Unemployment Insurance for Totally Separated Workers (located at www.ncesc.com). The NC Division of Employment Security understands that the employee is not “TOTALLY SEPARATED”, however for any week an individual files a claim for unemployment benefits, DES must determine whether the requirements listed above are met.
Employers will be sent a Form NCUI 500AB each time an individual files a claim for unemployment insurance benefits. Employers are responsible for providing accurate information to include: layoff and return to work dates and; the correct reason why the individual is not working (including temporary layoff). Incorrect responses such as (still employed) can delay benefit payments to temporarily laid off individuals.
For more information on NC’s Unemployment Law and other updates in state and federal laws, make sure to attend the 2013 Triad Employment Law Update on November 5 at the Grandover Resort in Greensboro. Knowledgeable attorneys from Constangy, Brooks and Smith, LLP will provide you with information on several topics, including: wage and hour; I-9 compliance; immigration; off-duty conduct; health care reform; hiring practices; terminations; and the NLRB. Visit www.capital.org/triadlaw to register and find detailed information on conference presentations.