20
Unemployment compensation
becomes budget issue for schools
As districts are contemplating
cutting certified and non-certified
staff, superintendents need to keep
in mind that all of the salaries
involved will not be saved the next
year or even the next 18 months. In
these lean times for educational
jobs, it is likely that a great many of
your employees that are reduced
will apply for Unemployment
Compensation.
Keep
in
mind
that
Unemployment
Compensation will cost the employer the entire
amount of unemployment compensation granted
for a period of up to 18 months after job separation.
Current rates of reimbursement range from 50
percent to 74 percent of previous salaries. Therefore, for at least 18 months there will be additional costs for
these reduced employees.
There are two categories of Unemployment Compensation: one being a direct reimbursement of dollar-for
-dollar amounts for employees separated, the other being an averaging process in which you pay the same
amount regardless of how many employees are separated.
One other issue to remember is that most districts employee a professional firm to monitor their
unemployment claims for any that claims that might not qualify for reimbursement. These firms will inform
you of claims, claim applicants and amounts required for payment. They will also represent you in case there
are any disputed unemployment claims. The costs are nominal for the professional assistance these firms
provide for your school district.
ISDLAF+ February 2013 Monthly Update
Click
t
o view the February 2013 ISDLAF+ rates,
economic indicators and general economic news brief. To
obtain additional information regarding this IASA
sponsored service, contact Emmert Dannenberg,
statewide marketing director/ ISDLAF+ at 815.592.6948.
To check daily rates, visit the ISDLAF+ website at
.
Dr. Bill Phillips
IASA Field
Services
Director
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