As we have discussed frequently, UI Integrity legislation came about specifically to stop improper payments to claimants.

But what exactly is an improper payment?

The term “improper payment” is defined in the Improper Payments Elimination and Recovery Act of 2010 as:

• funds go to the wrong recipient,
• the recipient receives the incorrect amount of funds (either an underpayment or overpayment),
• documentation is not available to support a payment, or the recipient uses federal funds in an improper manner.

Why do we have improper payments?

In terms of unemployment, there are several different reasons that an improper payment may occur. The following chart was prepared by the Department of Labor and identifies several reasons that an improper payment may occur.

Improper Payment Chart

How are the new UI Integrity measures helping lower improper payments?

Early results do show that 41 states have been successful in reducing their improper payment rates.  Unfortunately, 11 states have increased their improper payment rates.  Those states are California, Hawaii, Idaho, Massachusetts, Montana, Nevada, New Jersey, New York, North Carolina, Vermont, and Washington D.C.

Looking at 2014, the Department of Labor estimates are that the National Improper Payment Rate for 2014 is currently at 11.4%, but is projected to be at 10% by the end of the fiscal period of July 1, 2013-June 30, 2014.    This is substantially higher than the 2013 fiscal year results (9.32%) and results from $10.3 Billion dollars in improper payments being made.

Screen Shot 2014-05-14 at 1.12.06 PM

While it appears that the legislation is not having much effect on state and national improper payment rates, it is important to note that the legislation has really only been in effect for six months. As the UI Integrity program matures, we can only estimate that the Improper Payment Rate both nationally and in each state will continue to be lowered as the legislation matures.

Interested in learning more about unemployment? Check out CCC’s website at www.corporatecostcontrol.com


Contact CCC to see how we can save your organization time and money.
Contact our Sales Team
(800) 207-6926

Featured Videos

View All Videos

Latest News

Close

Sales

    Your Name:*

    Title:

    Company Name:*

    Company Address:

    Company City:

    Company State:

    Company Zip:

    Number of Employees:

    Your Email:*

    Phone Number:*

    Fax Number:

    Check the boxes below if you wish to receive information on any of the following:

    Unemployment Cost ControlTax Credits & Incentives (WOTC)Employment / Wage Verification

    Your Message:

    Employment & Income Verfication

      Your Name:*

      Title:

      Company Name:*

      Company Address:

      Company City:

      Company State:

      Company Zip:

      Number of Employees:

      Your Email:*

      Phone Number:*

      Fax Number:

      Your Message: