4. TODAY’S TALK
• What unemployment tax is and how liability is
established
• How someone becomes eligible for benefits
5. TODAY’S TALK
• What unemployment tax is and how liability is
established
• How someone becomes eligible for benefits
• What you can do to reduce your exposure
10. UNEMPLOYMENT TAX
What it is
A fixed percentage (your rate) of the first $9000 of an
employee’s wages
11. UNEMPLOYMENT TAX
What it is
A fixed percentage (your rate) of the first $9000 of an
employee’s wages
Paid quarterly until the $9000 earnings maximum is
met
15. UNEMPLOYMENT TAX
How liability is established
Rate is set annually
Rate is based on assessments and charge-backs to
your account for the previous 36 months
17. A PERSON RECEIVES BENEFITS WHEN...
Under certain conditions, he/she becomes
unemployed
18. A PERSON RECEIVES BENEFITS WHEN...
Under certain conditions, he/she becomes
unemployed
➡ Excludes misconduct
19. MISCONDUCT DEFINED
source: Texas Workforce Commission Website, retrieved August 1, 2010
http://www.twc.state.tx.us/ui/bnfts/employer2.html#misconduct
20. MISCONDUCT DEFINED
source: Texas Workforce Commission Website, retrieved August 1, 2010
• mismanagement of a position of employment by action or
inaction
http://www.twc.state.tx.us/ui/bnfts/employer2.html#misconduct
21. MISCONDUCT DEFINED
source: Texas Workforce Commission Website, retrieved August 1, 2010
• mismanagement of a position of employment by action or
inaction
• neglect that places in jeopardy the lives or property of others
http://www.twc.state.tx.us/ui/bnfts/employer2.html#misconduct
22. MISCONDUCT DEFINED
source: Texas Workforce Commission Website, retrieved August 1, 2010
• mismanagement of a position of employment by action or
inaction
• neglect that places in jeopardy the lives or property of others
• intentional wrongdoing or malfeasance
http://www.twc.state.tx.us/ui/bnfts/employer2.html#misconduct
23. MISCONDUCT DEFINED
source: Texas Workforce Commission Website, retrieved August 1, 2010
• mismanagement of a position of employment by action or
inaction
• neglect that places in jeopardy the lives or property of others
• intentional wrongdoing or malfeasance
• violation of a policy or rule adopted to ensure
orderly work and the safety of employees
http://www.twc.state.tx.us/ui/bnfts/employer2.html#misconduct
25. MISCONDUCT ALWAYS COMES
DOWN TO THIS:
• Did the applicant know or should they have known about the
broken rule?
26. MISCONDUCT ALWAYS COMES
DOWN TO THIS:
• Did the applicant know or should they have known about the
broken rule?
AND
27. MISCONDUCT ALWAYS COMES
DOWN TO THIS:
• Did the applicant know or should they have known about the
broken rule?
AND
• Did the applicant know or should they have known that a
violation could lead to termination?
28. YES, IT’S AT WILL EMPLOYMENT.
But you still have potential Federal and State Liability.
34. THE APPLICATION
• It’s a contract.
- Work status (full vs. part time)
- Work schedules (days & hours
available/not available for work, OT, etc.)
Application
35. THE APPLICATION
• It’s a contract.
- Work status (full vs. part time)
- Work schedules (days & hours
available/not available for work, OT, etc.)
- Physical ability to perform job
Application
36. THE APPLICATION
• It’s a contract.
- Work status (full vs. part time)
- Work schedules (days & hours
available/not available for work, OT, etc.)
- Physical ability to perform job
- Availability of transportation
Application
37. THE APPLICATION
• It’s a contract.
- Work status (full vs. part time)
- Work schedules (days & hours
available/not available for work, OT, etc.)
- Physical ability to perform job
- Availability of transportation
• Once signed, it becomes the basis
of your relationship.
Application
38. THE APPLICATION
• It’s a contract.
- Work status (full vs. part time)
- Work schedules (days & hours
available/not available for work, OT, etc.)
- Physical ability to perform job
- Availability of transportation
• Once signed, it becomes the basis
of your relationship.
• Customize it to meet your Application
business needs
41. THE EMPLOYEE HANDBOOK
• The rule book for work
• Should always include:
Employee
Handbook
Application
42. THE EMPLOYEE HANDBOOK
• The rule book for work
• Should always include:
- Rules of conduct and performance
that, if violated, could cause a person Employee
to lose their job with and/or without Handbook
prior warning
Application
43. THE EMPLOYEE HANDBOOK
• The rule book for work
• Should always include:
- Rules of conduct and performance
that, if violated, could cause a person Employee
to lose their job with and/or without Handbook
prior warning
- An acknowledgement, when signed
by new hire, attesting to their receipt Application
and understanding of the rules
45. THE ORIENTATION
• Your last opportunity to Orientation
- discuss the handbook and any rules
or points of emphasis Employee
Handbook
Application
46. THE ORIENTATION
• Your last opportunity to Orientation
- discuss the handbook and any rules
or points of emphasis Employee
- confirm understanding of the rules Handbook
and your expectations
Application
48. HOW TO DOCUMENT
Everything must be in writing.
1. Cite the rule that was broken.
49. HOW TO DOCUMENT
Everything must be in writing.
1. Cite the rule that was broken.
2. Reference the handbook and the employee’s acknowledgment.
50. HOW TO DOCUMENT
Everything must be in writing.
1. Cite the rule that was broken.
2. Reference the handbook and the employee’s acknowledgment.
3. Detail the relevant incident and include specific actions/words.
51. HOW TO DOCUMENT
Everything must be in writing.
1. Cite the rule that was broken.
2. Reference the handbook and the employee’s acknowledgment.
3. Detail the relevant incident and include specific actions/words.
4. Outline the consequences of another occurrence (potential
termination).
52. HOW TO DOCUMENT
Everything must be in writing.
1. Cite the rule that was broken.
2. Reference the handbook and the employee’s acknowledgment.
3. Detail the relevant incident and include specific actions/words.
4. Outline the consequences of another occurrence (potential
termination).
5. Have the employee acknowledge receipt of the
communication in writing.
55. MISCONDUCT REVISITED
Did the applicant know
about the rule?
✓ You have a signed application,
56. MISCONDUCT REVISITED
Did the applicant know
about the rule?
✓ You have a signed application,
✓ a handbook with signed
acknowledgment from the
applicant.
57. MISCONDUCT REVISITED
Did the applicant know
about the rule?
✓ You have a signed application,
✓ a handbook with signed
acknowledgment from the
applicant.
✓ and acknowledgement of
orientation in which the rules
were discussed.
58. MISCONDUCT REVISITED
Did the applicant know Did they know about
about the rule? the consequences?
✓ You have a signed application,
✓ a handbook with signed
acknowledgment from the
applicant.
✓ and acknowledgement of
orientation in which the rules
were discussed.
59. MISCONDUCT REVISITED
Did the applicant know Did they know about
about the rule? the consequences?
✓ You have a signed application, ✓ You have a signed copy of
✓ a handbook with signed
the communication of
acknowledgment from the consequences, indicating
applicant. acknowledgement.
✓ and acknowledgement of
orientation in which the rules
were discussed.
61. YOU AND YOUR LIABILITY
• Liability is based on the Employee’s Base Period
62. YOU AND YOUR LIABILITY
• Liability is based on the Employee’s Base Period
• Base period is defined by
• The first four of the last five completed calendar
quarters of employment preceding the claim
63. YOU AND YOUR LIABILITY
more applicable version:
Your liability for any employee begins on the first day of the
second full calendar quarter.
64. YOU AND YOUR LIABILITY
more applicable version:
Your liability for any employee begins on the first day of the
second full calendar quarter.
You have 91-179 days to evaluate any new hire.
69. MISCONDUCT RE-REVISITED
Fantasy
You want to terminate
someone for
incompetence
You cannot.
If they are incompetent, why did
you hire and keep them?
70. MISCONDUCT RE-REVISITED
Fantasy Fact
You want to terminate
someone for
incompetence
You cannot.
If they are incompetent, why did
you hire and keep them?
71. MISCONDUCT RE-REVISITED
Fantasy Fact
You want to terminate ✓ You can terminate
someone for someone for failing to
incompetence perform in a manner of
which he/she is capable.
You cannot.
If they are incompetent, why did
you hire and keep them?
73. REMEMBER
• When you are notified of a TWC Claim, the most important
thing you can do is respond within the provided time frame.
74. REMEMBER
• When you are notified of a TWC Claim, the most important
thing you can do is respond within the provided time frame.
• Respond with the documentation at your disposal. Verbal
warnings are okay as long as they are documented in writing.
75. REMEMBER
• When you are notified of a TWC Claim, the most important
thing you can do is respond within the provided time frame.
• Respond with the documentation at your disposal. Verbal
warnings are okay as long as they are documented in writing.
• Ask for help – even if it’s from the TWC.
76. REMEMBER
• When you are notified of a TWC Claim, the most important
thing you can do is respond within the provided time frame.
• Respond with the documentation at your disposal. Verbal
warnings are okay as long as they are documented in writing.
• Ask for help – even if it’s from the TWC.
It’s all about the documentation.
84. FINALLY
• History tells us that on the first day of work, a new
hire’s behavior is the best it will ever be.
85. FINALLY
• History tells us that on the first day of work, a new
hire’s behavior is the best it will ever be.
• Look for early warning signs and address them ASAP.
86. FINALLY
• History tells us that on the first day of work, a new
hire’s behavior is the best it will ever be.
• Look for early warning signs and address them ASAP.
• Make your cuts before you incur liability.
