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What needs to be managed by human resources if an employee leaves?

Your human resources (HR) team or PEO should be managing the following items before and after an employee termination, layoff, or resignation:

Personnel files and documentation

There are several forms of documentation to keep on hand for each of your employees, like payroll files, medical files, performance reviews, leaves of absences, etc. Having these resources on file is good for HR workflow so these documents are easily accessible, but it can also help protect your company in case of a lawsuit or unemployment claim.


Unemployment costs

The unemployment tax rate varies by state, which means unemployment cost management for one company over another may differ. However, on average, one unemployment claim could cost you $4,200 to $10,000 or more. Managing these costs with unemployment cost control is an important part of running a business.


Unemployment claims and disputes

One of the reasons companies spend so much on unemployment is because they don’t work to dispute any initial claims as a part of the unemployment claims process or monitor fraudulent claims. The following are individuals who are eligible for unemployment benefit charges:

  1. Employees who were laid off
  2. Employees who worked for a specific amount of time
  3. Employees who earned a minimum amount in wages (varies by state)
  4. Those who are actively seeking work while they collect benefits



If the employee filing a UI claim does not meet the eligibility requirements, which you can identify from the personnel files and documentation you kept on hand, then you may not owe them unemployment benefits and can save your company some money.

How our unemployment claims management service can help your company

There are many benefits to outsourcing your UI claims management. As your PEO, we can provide your company with the following HR solutions:

Talent management

We can help you recruit, hire, and manage top talent retention to mitigate unemployment claims. We want to assist you with your ongoing talent management solutions so you can focus on what you do best: growing and running your company.

Customer care

Hiring, training, and managing employee performance documentation requires resources, skills, and focus few SMBs have available. And when you add unemployment insurance claims to that, your HR team can feel stretched thin. Our team of experts are equipped to assist.

Risk management

We can be your dedicated resource for reviewing worksite employee terminations; ensuring proper coding, collection of documentation supporting a termination; and responding to state agencies for adjudication of an unemployment claim.

Other risk management services

An advantage to working with a PEO provider is having the freedom to grow as a company and improve your employees’ day-to-day experience. If an accident, lawsuit, or claim occurs, you will have the tools needed to help your employees and protect your company.

Some additional risk management services we offer include:

Employer protection program (EPP)

We help reduce the risks of claims arising from acts such as: discrimination, harassment, wrongful termination, and other employment-related issues.

Workplace safety

Establishing a safe workplace is critical to business success. It protects your employees from workplace injuries and safeguards the growth of your business.

Workers’ compensation insurance

Workers’ compensation management can be complex, time-consuming, and costly—especially with higher risk factors, multi-state operations, or frequent business travelers.

Why you can trust us with unemployment insurance claims management

We care about protecting your employees and company, which is why we never take risks with your business or your employees.

In recognition of our principles, the Certification Institution awarded us for meeting all industry professional risk management best practices.

Learn more about our awards

How unemployment insurance claims management has helped businesses like yours

See more ExtensisHR resources

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