Tag Archives: Workforce Management

Explore in-depth workforce management insights, HR strategies, compliance updates, staffing best practices, and tools that help employers build strong, productive, and efficient teams.

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.

Avoid These Common Employer Mistakes in Handling Unemployment Claims

Managing a business is full of challenges, and one of the most frustrating ones can be dealing with unemployment claims. Whether you’re going through layoffs, restructuring, or parting ways with an employee for other reasons, those departures often come with an extra cost: unemployment insurance claims.

What many employers don’t realize is how easy it is to make small mistakes that can lead to big financial consequences. These missteps could drive up your unemployment tax rate sometimes for years without you even knowing why. But the good news? Most of these mistakes are preventable.

Let’s break down some of the most common employer errors when it comes to handling unemployment claims, and what you can do to avoid them.

1. Delayed Responses to Claims

It might not seem like a big deal to miss a deadline here or there, but when it comes to unemployment claims, time matters. In many states, you have just 10 days (sometimes less) to respond. If you miss that window, the claim can be approved automatically, even if the employee shouldn’t be eligible.

👉 What You Can Do: Assign a go-to person in HR to track incoming claims and respond right away. A timely and thorough response can make all the difference in whether a claim is approved or denied.

2. Vague or Incomplete Documentation

“We let them go for poor performance.” Unfortunately, that kind of statement won’t hold up. Without specific incidents, dates, and written records, the state is likely to side with the former employee.

👉 What You Can Do: Keep detailed records of employee performance issues, including written warnings, performance improvement plans, and any relevant communications. The more evidence you have, the stronger your case.

3. Misclassifying the Reason for Separation

Getting the separation reason wrong, even by accident, can lead to your business being wrongly charged for benefits. For instance, if an employee quits but you list it as a layoff, your account might be hit with avoidable charges.

👉 What You Can Do: Be crystal clear about the reason for separation. Whether it was a resignation, misconduct, reduction in force, or something else, accuracy matters when it comes to unemployment eligibility.

4. Automatically Approving Every Claim

It might seem easier to just let claims go through, especially if you’re short on time. But if you don’t review and challenge questionable claims, you could be driving up your unemployment tax rate year after year.

👉 What You Can Do: Don’t assume every claim is valid. Review each one carefully. If an employee was terminated for serious misconduct or left voluntarily, you may have valid grounds to contest the claim.

5. Skipping the Appeals Process

Did a claim get approved when it shouldn’t have? Many employers don’t realize they have the right to appeal, or they don’t think it’s worth the effort. But appealing a claim can often reverse the decision and save you money.

👉 What You Can Do: If something feels off, file an appeal. Gather your documentation, attend the hearing, and present your case clearly. You might be surprised how often decisions are overturned.

6. Gaps in Communication Between Departments

In many companies, the people who manage day-to-day operations aren’t the ones handling unemployment claims. This disconnect can lead to missing or inconsistent information when responding to claims.

👉 What You Can Do: Encourage better communication between HR, supervisors, and department heads. Make sure all relevant documentation is accessible and up to date so that your claim responses are thorough and accurate.

7. Ignoring Unemployment Cost Control Strategies

Many business owners treat unemployment insurance like a fixed cost, but it’s not. How you handle claims directly impacts your tax rate. Without a clear strategy, you could be overpaying without even realizing it.

👉 What You Can Do: Partner with experts like Dunn Corporate Resources. We help businesses take a proactive approach to unemployment cost control, from reviewing claims to evaluating voluntary contributions that could reduce your tax rate.

8. Not Training Managers on Proper Procedures

Your managers are on the front lines. If they don’t document issues properly or follow consistent processes, it makes it harder to defend against claims later on.

👉 What You Can Do: Provide training for supervisors on how to handle terminations, document employee behavior, and communicate clearly with HR. These habits can help you avoid costly claim mistakes down the road.

The Bottom Line: Be Proactive, Not Reactive

Unemployment claims don’t have to be a drain on your business. With the right strategy, clear documentation, and timely responses, you can protect your company from unnecessary costs.

At Dunn Corporate Resources, we specialize in helping businesses just like yours take back control of unemployment insurance costs. Our team offers complimentary evaluations of your unemployment and disability tax accounts, identifies potential savings, and helps you build a plan that works.

📞 Ready to start saving?
Let’s talk. Contact us today and discover how smart unemployment cost control can make a difference to your bottom line.