Unemployment Claims Can Be Costly | PEO blog

As a business owner you know sometimes the process of hiring and firing can feel like a revolving door, what you may not realize is that having high turnover can also affect your unemployment tax rate if it is not managed properly.
Employers can have their unemployment rates rise in direct proportion to unemployment claims of terminated employees. In other words if your business has a high amount of employee turnover, typically you can expect to pay a higher unemployment tax rate. Unemployment tax rates will also fluctuate based on company payroll and unemployment benefits charged against your company.
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