Who Is Notified of Initial Claims Filed?
When an individual applies for unemployment benefits, TWC mails a Notice of Application for Unemployment Benefits to the individual or organization for which the claimant last worked. It is to the employer's advantage to respond promptly to this notice with detailed information about the claimant's separation. TWC can make a better decision if we have a statement from the employer as well as from the claimant. Employers should ensure that they fill out the form completely, including dates worked, separation reason, details, and contact person and return to TWC.
Can an Employer Protest Payment of a Claim?
Yes. An employer has 14 days from the date TWC mails a Notice of Application for Unemployment Benefits to respond by telephone, fax, mail, or Internet. TWC recommends employers use the online Employer Response to Notice of Application. Employers should read the Employer Response Frequently Asked Questions for tips on using the online application.
What Notice Is Mailed in Response to an Employer's Protest?
When a timely protest is received from an employer, the employer becomes an interested party to the claim and will be mailed a copy of the determination made in regard to the claim. This determination is furnished on Form BD630E, Employer's Copy - Determination on Payment of Unemployment Benefits, or occasionally by means of a letter. If the claimant received the wages from a taxed employer which is an interested party, and such wages were used to establish this claim, the Determination will also indicate whether or not the benefits paid to the claimant during this benefit year will be charged to the account of such interested party. When a protest is not timely, employers will be mailed a letter providing this information.
If the claimant does not have sufficient wages to qualify for unemployment compensation, the interested party will be mailed a letter providing this information.
Who Can Appeal A Determination?
Either the employer, if an interested party, or the claimant, can file an appeal. Each has 14 days from the date a determination is mailed in which to file an appeal.
What Are Chargebacks?
Chargebacks are the sum of the regular unemployment benefits (and 50 percent of extended benefits, if applicable) paid to a claimant and charged to the tax account(s) of the base period employer(s). TWC uses chargebacks to compute an employer's tax rate. Chargebacks are not what the employer owes unless the employer has chosen to be a "reimbursing employer." If claimants do not draw all of the benefits they qualify to receive, the benefits not drawn do not become chargebacks.
For more information on how TWC calculates your tax rate, read Tax's Frequently Asked Questions.
If claimants do not draw all of the benefits for which they qualify, the benefits not drawn will not become chargebacks. If at any time following the initial claim date an employer knows of circumstances which would prevent payment to the claimant, the employer should notify the Commission in writing of the circumstances and mail such notification to the Texas Workforce Commission, UI Support and Customer Service Department, 101 East 15th Street, Austin, Texas 78778-0001.
How Is the Base Period Employer Notified of Maximum Potential Chargebacks?
After a claimant receives the first benefit payment, TWC mails a Notice of Maximum Potential Chargeback (Form BE136E) to the base-period taxed employer(s), but not the last employer, showing the maximum amount of benefits that TWC may potentially charge to the employer's account. The Notice of Maximum Potential Chargeback asks base period employers to give the reason for the claimant's separation so TWC can evaluate whether to charge the employer for benefits paid to the claimant.
Can Employers Protest Chargebacks to Their Account?
Yes. To protest a chargeback, the employer should fill out the back of the Notice of Maximum Potential Chargeback and return it to TWC by fax or mail. Taxed employers have 30 days from the date TWC mailed the Notice of Maximum Potential Chargeback to protest the chargeback notice and present facts to prevent the chargeback to the employer's account. Employers can protest a chargeback by completing the back of the Notice of Maximum Potential Chargeback and faxing or mailing it to the Texas Workforce Commission, Chargeback Determination Unit, 101 East 15th Street, Austin, Texas 78778-0001, within 30 days of the mailing date of the notice.
When TWC makes a decision on chargeback, we mail the employer a Charge Liability Decision. This decision shows whether the claimant's benefits are chargeable to the employer's account. Employers have 14 days after the mailing date to file a timely appeal.
If you are the last employer of the applicant, you will receive the Notice of Initial Claim, rather than the Notice of Maximum Potential Chargeback. The claimant's last work employer, notified earlier of the claim, would have no further rights to protest the chargeback except in cases of clerical or machine errors affecting the amount of the maximum potential chargeback shown on the Wage Verification Notice (Form BE135H).