Do you have a Rehire Strategy?
Establishing a rehire policy and mechanism for determining rehire eligibility can
help reduce not only UI benefit charges, but also keep employers from paying additional
unemployment taxes on payroll dollars. If
an individual is rehired within the year a new wage base is not established. Taxes
are generally calculated on a state defined dollar amount of wages for the year regardless
of whether there is a break in service for that individual. Rehire
programs also reduce other rehire costs such as recruiting and training.
Rehire programs can be extremely beneficial in industries such as retail, where turnover
is high and staffing requirements fluctuate dramatically based on consumer demand.
So if you haven’t considered your rehire policies as part your your unemployment cost
management program, it might be time to start.
This weblog is sponsored by TALX.
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