Tag Archives: Employer tax savings

Get insights on employer tax savings, unemployment insurance optimization, payroll tax reduction methods, and strategic approaches to lower tax liabilities throughout the year.

Why Every Business Needs an Unemployment Cost Control Strategy in 2025

Running a business in today’s economic climate isn’t easy. Between managing payroll, retaining talent, and staying compliant with ever-changing regulations, employers already have plenty on their plates. But there’s one area that often flies under the radar: unemployment cost control.

As we move into 2026, unemployment insurance (UI) costs are becoming a growing concern for businesses across the United States. Many employers assume these costs are fixed or out of their control, but the truth is very different. With a strategic approach and the right partner, your company can actively manage unemployment expenses, protect your bottom line, and stay fully compliant with state and federal requirements.

Let’s explore why having a dedicated unemployment cost control strategy isn’t just smart, it’s essential.

1. Unemployment Costs Are Rising Nationwide

Unemployment insurance taxes are based on two factors: your state’s unemployment tax table and your company’s experience rating, which is determined by how many claims have been filed against your account.

As states adjust their benefit programs and wage bases, unemployment taxes can fluctuate dramatically from year to year. For instance, increases in weekly unemployment benefits, such as those recently announced in New York, often result in higher employer tax rates over time.

Without proactive management, even a few unwarranted or misclassified claims can cause your UI tax rate to skyrocket, costing thousands of dollars annually. Having a structured unemployment cost control plan in place helps minimize these unnecessary expenses.

2. Preventing Unwarranted Claims Saves Thousands

Many employers underestimate how much a single unemployment claim can impact their tax rate. If an employee who left voluntarily or was terminated for misconduct receives benefits due to a lack of documentation or late responses, that claim directly affects your company’s experience rating.

With unemployment cost control services, employers can:

Review and contest invalid claims promptly
Maintain accurate documentation of terminations and separations
Stay compliant with state deadlines and appeal procedures

A single successful claim protest can prevent a major tax rate increase, saving your company real money over the long run.

3. Compliance Is Becoming More Complex

Every state has its own rules, forms, and deadlines for handling unemployment claims. Add in federal requirements, and it’s easy to see how errors happen. A missed deadline or an inaccurate response can lead to benefit charges that are difficult or impossible to reverse.

A proper unemployment cost control strategy ensures that all claims are managed consistently, accurately, and on time. It also keeps your business compliant with state-specific unemployment compensation laws, helping you avoid costly penalties and audits.

4. Better Data Means Better Decisions

Modern unemployment cost management services now integrate advanced software and analytics to track claims activity, identify trends, and highlight potential savings opportunities.

These tools help employers:

Monitor active and pending claims
Forecast tax rate changes
Identify problem areas like high-turnover departments or repeat claimants

When combined with expert oversight, these insights empower businesses to make smarter workforce and financial decisions. You can finally see where your unemployment dollars are going, and how to get more control over them.

5. Voluntary Contributions Can Lower Your Tax Rate

One often-overlooked strategy in unemployment cost control is making a voluntary contribution to your state’s unemployment trust fund. By doing so, you can “buy down” your tax rate, often resulting in significant savings that far exceed the initial payment.

However, voluntary contributions are time-sensitive and must be carefully calculated to ensure they deliver a positive return. A cost control partner like Dunn Corporate Resources can help analyze your state notice, determine whether a voluntary payment makes sense, and handle the process before the deadline.

6. Partnering with Experts Saves Time and Stress

Managing unemployment claims internally can quickly become overwhelming, especially for businesses with multiple locations or high employee turnover. That’s where unemployment cost control experts come in.

At Dunn Corporate Resources, we handle every step of the process, from claims auditing and appeals to tax rate analysis and compliance tracking. Our goal is simple: to help businesses reduce unemployment costs without sacrificing productivity or peace of mind.

Employers who partner with experts often experience:

Fewer claim errors and overpayments
Lower overall tax rates
Streamlined communication with state agencies
Time savings for HR teams

7. 2026 Is the Year to Act

With state unemployment tax changes already taking effect in several regions and benefit increases on the horizon, 2026 is the perfect time for employers to take control of their unemployment costs.

Even if your current rates seem stable, a few unexpected claims or regulation shifts can quickly change that. A proactive unemployment cost control strategy not only protects your budget, but it also helps your business plan confidently for the future.

Take Control Before Costs Control You

Unemployment insurance is a necessary part of doing business, but overpaying for it isn’t. Every employer, regardless of size or industry, can benefit from implementing a thoughtful, data-driven unemployment cost control strategy in 2026.

By partnering with experts like Dunn Corporate Resources, you’ll gain access to tools, knowledge, and proven strategies that help you reduce costs, maintain compliance, and strengthen your financial foundation.

Your business works hard for its success, don’t let preventable unemployment costs chip away at it.

📞 Contact Dunn Corporate Resources today for a free unemployment tax rate analysis and discover how much your business could save this year.

How to Spot and Stop Fraudulent Unemployment Claims Before They Cost You

Unemployment claims are a normal part of doing business; they help support employees during times of job loss. But in recent years, many employers have been facing a different challenge: fraudulent unemployment claims. These are claims made by individuals who were never your employees, or by employees who are misrepresenting their circumstances to collect benefits they aren’t entitled to.

The problem?
Fraudulent claims aren’t just an administrative headache; they can directly increase your unemployment tax rate, costing your business thousands of dollars each year. The good news is that with the right strategies, you can detect and stop these claims before they drain your resources.

In this blog, we’ll walk you through the warning signs, prevention tips, and actionable steps to keep your unemployment costs under control.

Why Fraudulent Unemployment Claims Are on the Rise

Over the past few years, fraud has surged due to increased online filing systems, identity theft, and remote work, which makes verification harder. In some cases, criminals file claims using stolen identities. In others, employees misrepresent why they left a job to qualify for benefits.

For employers, the stakes are high. Even one fraudulent claim that goes unnoticed can:

Inflate your unemployment insurance tax rate.
Damage your company’s reputation with the state.
Drain valuable time and resources from your HR team.

This is why proactive detection and prevention aren’t optional; they’re essential.

How to Spot Fraudulent Unemployment Claims

Recognizing a suspicious claim early is your best defense. Here are some red flags to watch for:

1. Unfamiliar Names or Records

If you receive a claim notice for someone who was never on your payroll, it’s a clear sign of fraud. Cross-check the name, Social Security number, and employment dates against your records.

2. Current Employees Filing Claims

If an employee is still actively working but files a claim stating they were laid off or terminated, this is a red flag.

3. Incorrect Dates of Employment

Fraudulent claims often have mismatched hire and termination dates. A quick review of your HR system can confirm the facts.

4. Multiple Claims from the Same Address

When several claims list the same home address, but the individuals aren’t connected to your company, it could be part of a larger fraud scheme.

5. State Inquiries You Weren’t Expecting

If the state contacts you about wage details for an employee you don’t recall, investigate immediately.

Steps to Stop Fraudulent Claims in Their Tracks

Spotting suspicious activity is only half the battle, stopping it fast is where the savings happen.

1. Respond Promptly to All Claim Notices

Every unemployment claim has a deadline for an employer response. Missing it means you lose the chance to contest the claim, even if it’s fraudulent. Set up a process to review and reply to claims within 24–48 hours.

2. Maintain Accurate Employment Records

Up-to-date personnel files, payroll records, and timekeeping logs make it easier to verify or dispute claims quickly.

3. Educate Your HR and Payroll Teams

Train your staff to recognize fraud indicators and route suspicious claims to management immediately.

4. Notify the State Unemployment Office Quickly

If you suspect fraud, contact your state unemployment agency right away with supporting documentation. Many states have dedicated fraud hotlines or online reporting portals.

5. Work with an Unemployment Cost Control Partner

Specialized firms can monitor claims, track deadlines, and appeal questionable cases on your behalf, reducing both your workload and your costs.

Preventing Fraud Before It Happens

While quick detection is important, prevention saves the most money and stress. Here’s how you can make your business harder to target:

Secure Employee Data – Use encryption and limit access to sensitive personal information.
Exit Interviews and Documentation – Always document reasons for separation in detail; it helps when contesting false claims.
Payroll Audits – Conduct regular audits to ensure your records match actual employee status.
Employee Communication – Let current staff know to report any unemployment paperwork they receive if they haven’t left the company.

Why Acting Quickly Saves You Money

The unemployment insurance system calculates your tax rate based on the number and cost of claims charged to your account. If fraudulent claims slip through, they artificially inflate your history of payouts, which means:

Your tax rate increases, sometimes for multiple years.
You pay more per employee in unemployment insurance.

Even stopping one fraudulent claim can lead to significant savings over time.

Protect Your Bottom Line with Proactive Measures

Fraudulent unemployment claims aren’t just a government problem; they’re a business problem. By staying vigilant, maintaining accurate records, and responding quickly, you can protect your company’s finances and reputation.

If you’re feeling overwhelmed by the process or unsure whether your current strategy is enough, partnering with experts in unemployment cost control can make all the difference. They can monitor claims for you, handle appeals, and ensure you only pay for legitimate cases.

Final Takeaway:
Fraudulent unemployment claims can sneak up on even the most organized business. The key is to spot them early, stop them fast, and prevent them altogether with a proactive, well-documented approach.

Need help protecting your business from costly claims?
Let our specialists review your unemployment and disability accounts at no cost, and see how much you could save.

Contact us today and keep fraud from eating into your bottom line.