Arizona has achieved a national best ranking! Last year the state had the lowest rate of improper unemployment insurance payments. According to the United State Department of Labor, Arizona’s improper payment rate was 1.45 percent and equated to a total of $5,319,264 million in payments.
Arizona’s improper payment rate wasn’t always as excellent as it is now, and it cost businesses. Over the years, the business community has worked with state leaders to develop new guidelines for the unemployment insurance claims that would increase accuracy and safeguard employers. Increases in costs are shouldered by the Arizona business community.
While, there is still room for improvement in the system, Arizona is moving in the right direction.
Read more about the issue in the Arizona Capitol Times report.
The Federal-State Unemployment Insurance Program provides unemployment benefits to eligible workers who are unemployed through no fault of their own and meet other eligibility requirements of state law. Each state administers a separate unemployment insurance program within guidelines established by federal law. Eligibility for unemployment insurance, benefit amounts and the length of time benefits are available are determined by the state laws, rules and policies under which unemployment insurance claims are established.
In Arizona, eligibility is based on wages you have earned in the state from employers who pay the unemployment insurance tax. In Arizona, most employers are required by law to pay unemployment taxes on the first $7,000 in gross wages paid to each employee in a calendar year. An employer can be an individual, partnership, corporation, limited liability company or any other entity for which a worker performs services.