The effects of COVID-19 continue to linger, and as a result, some states have been behind in their calculation of 2021 unemployment rates. A little over halfway through the year, however, and we are starting to see those states play catch up. What does this mean for you?
2021 Unemployment Rates in States Behind
If a state is behind in their calculation of 2021 unemployment rates as a result of COVID-19, 2020 rates remain in place for billing purposes until updated rates are provided.
Recalculated 2021 Unemployment Rates
Now that states are getting caught up, we are seeing them issue 2021 rates. In doing so, the rates will be effective retroactive to January 1, 2021. This could result in a catch-up amount if rates increase. Resourcing Edge is here to make this process easier on your behalf. We will assist by calculating the difference once rates are received, collecting the outstanding balance, and remitting payment to the state.
In some cases, we have seen states devise a plan to recover the cost of benefits paid during the COVID-19 pandemic. An assessment is added to the unemployment rate specifically targeted at COVID-19 costs in these situations. Similar to 2021 re-rates, we have seen these go into effect retroactive to January 1, 2021, also resulting in a catch-up amount.
As those states that fell behind continue to make unemployment rate updates, Resourcing Edge will provide notice of the rate change. Should additional payments need to be collected, we will help you understand those calculations being paid to the unemployment offices. Please reach out to your Resourcing Edge Client Account Manager for additional support if you have any further questions or would like additional information.
- Lingering Effects of COVID-19 on Unemployment Rates - July 22, 2021
- Navigating RE360 - April 21, 2021