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CCC: It’s a Family Tradition

CCC is the largest family owned business in Unemployment Cost Management and Employment & Income Verification Industries. Our history began in 1965 when Jack Rooney opened Jon-Jay Associates in Boston, Massachusetts, a pioneer in the unemployment cost management industry. As they grew up, Jack brought his sons Jay and Tim Rooney into the business starting them off in the claims and hearings departments. Jack felt it best to have them learn the business from the ground up, focusing on how to provide quality program management with superior customer service.

While Jack never truly retired, in 1995 he went part-time, having Jay and Tim take over the reigns of the business. By continuing to provide the customer focused service, Jay and Tim expanded the business, also adding Employment and Income Verification Services, EVS, in 1997. In 2005, Talx acquired Jon-Jay, asking Tim and Jay Rooney manage Talx’s UCM division.

Unfortunately, Jay and Tim’s philosophy did not fair well at Talx and both left the organization within 3 years. In 2009, the FTC removed their non-competition clauses allowing Jay and Tim to return to the business they missed. By acquiring Corporate Cost Control, Jay and Tim made a dramatic entrance back in the industry.

Jay and Tim were determined that CCC would be different and began hiring the best talent in the industry. CCC’s leadership team has deep roots from Frick, Sheakley, Jon-Jay, Gates McDonald, Thomas & Company, Barnett, Talx, and even Equifax. By utilizing the experience of each team member, CCC has raised the bar in every aspect of the industry, making CCC quickly become the leading Unemployment Cost Management and Employment & Income Verification provider in the US.

Carrying on the family legacy, the third generation of the Rooney family have joined the business. Throughout their high school and university years each family member spent time working in support services and claims, learning all aspects of business. After gaining experience in other industries, each have chosen to join the family business, passionate about providing superior customer service and adding technological improvements that makes CCC’s service better for both CCC team members and clients.

The third generation includes:

Peregrine Rooney – IT Specialist

Evangeline Gaudet – HR Manager & Senior Account Executive

Molly Rooney – Marketing Manager

These women ensure that current and future CCC clients will continue to experience the highest level of service, advanced technologies and innovative products. Each of them have the passion, intelligence and foresight that Jack Rooney had when he began Jon Jay in 1965. As an CCC Team Member, it’s exciting to see the future, today.


Unemployment Tax Update

Unemployment Claims and Their Impact on Tax Rates

 

As an employer, the unemployment claim process can be confusing and time consuming to pursue. Wouldn’t it be best to allow former employees to collect their benefits and move on? That would be the quick and easy solution, however unemployment claims are just one part of a complicated, federally mandated system that is fraught with errors and omissions. The problem with this easy solution is the employer is ultimately the party responsible for paying into the federally mandated system. The more unemployment claims that are paid to claimants, the higher the tax rate for the employer.

Each year, state unemployment agencies calculate tax rates for employers that do business in their state. The tax rates are calculated using multiple factors; each one having an impact on how high or low the rate will be. Since the payment of unemployment claims is dependent on the employer’s contributions into the state fund, this is one factor that can have a material tax impact. Just one claim paid at the maximum claim value can cause an employer’s tax rate to increase. So how are unemployment tax rates calculated? Although each state has its own formula for calculating a tax rate, many states use one of two formulas. One is called a Reserve Ratio Calculation and the other is called a Benefit Ratio Calculation.

In a Reserve Ratio Calculation, a ratio is derived by dividing the Account Balance by the Taxable Payroll Factor. The Account Balance is the pool of money the employer has paid to support the unemployment claims paid from its account. The Taxable Payroll Factor can be a one-year figure, a multi-year figure or even an average. The Taxable Payroll is the amount of wages, or payroll, on which the employer pays taxes for each employee in a given state. There is a maximum amount of wages on which an employer must pay taxes annually for each employee. If the Account Balance is drained because of unemployment claims being paid from it, the ratio will change which will cause the tax rate to increase.

To provide an example, let’s assume the state has a table as indicated below.

If Employer A has an account balance of $2,000,000 and taxable payroll of $50,000,000, the ratio would be 4%. Applying that ratio to the table, the employer would receive an annual tax rate of 2.325%. However, if the employer’s account balance were to drop to $500,000 and the taxable payroll remains the same at $50,000,000, the ratio would be 1% and the tax rate would increase to 2.511%. The result is a $93,000 tax increase for the year.

In a Benefit Ratio Calculation, a ratio is derived by dividing the Benefits Factor, otherwise known as the unemployment claim benefits, by the Taxable Payroll Factor, which was previously explained. Using the same taxable payroll figure above of $50,000,000, let’s assume the employer paid $150,000 in unemployment claims during the last rating period. By dividing the benefits paid of $150,000 by the taxable payroll figure of $50,000,000, the resulting ratio/tax rate is 0.30%. However, if the employer were to pay $500,000 in unemployment benefits, the resulting ratio/tax rate would increase to 1.00%. The tax increase would be $350,000.

As you can see, managing unemployment claims has a direct impact on taxes paid. Careful review of protested claims with your CCC Account Executive can go a long way in managing future unemployment tax rates. Unemployment tax is a payroll tax which can have a material impact on your bottom line. If you are preparing your 2019 budget and are interested in a projection of your 2019 tax rates, please contact Wayne Rottger, Director of Tax at wrottger@corporatecostcontrol.com or your CCC Tax Analyst for additional information.


Guideline

Benefit Wage Audits: The Unsung Heroes of the Unemployment Process

For years, it has been customary practice to put little to no effort into Benefit Wage Audits. It seems tedious because you’ve already provided this information via your quarterly audit or you ensure accuracy by auditing benefit charge activity closely. It’s difficult to try and complete them, because each state unemployment agency has different formats. These are just a few reasons why Benefit Wage Audits usually fall to low priority, so let Corporate Cost Control handle them for you, for free.

Benefit Wage Audits are what we like to call the “unsung heroes” of the unemployment process. States have been able to save millions of dollars in employer-funded unemployment benefits by utilizing the benefit wage audit process. Simply stated, Benefit Wage Audits are the state unemployment agencies’ way of elevating fraudulent claims for benefits. Fraudulent claims are bad for business as they negatively affect your unemployment tax rate.

It is important to note that some state unemployment agencies are now beginning to penalize employers under UI Integrity legislation for failing to return Benefit Wage Audits. At Corporate Cost Control, we strive to do anything within our abilities to help our clients positively affect their tax rate and in turn, save our customers millions of dollars. Let us help save you time and money!

At this time, if you utilize our free Employment and Income Verification service, CCC Verify, you also qualify for our Free Benefit Wage Audit services. If you don’t utlize this service, please contact John Baumgartner at jbaumgartner@corporatecostcontrol.com to talk about both our free employment verification services and benefit wage audit services.

 


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

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