Phone: 630-495-2282 Fax: 630-495-2260 Map/Directions
 

Xchanging deflects Q1 2011 unemployment claims

April 15, 2011
One hundred forty-two CATA dealer members reported a combined 807 unemployment claims during the first quarter of 2011 to Xchanging, which has been serving CATA dealers under various names since 1979. The company’s efforts saved those dealers a total of $920,894 in benefits by contesting the claims.
     
Xchanging monitors any unemployment claims against its clients and contests all unwarranted claims and charges. The company counts about 250 CATA dealers among its clients.            Claims that can be protested and subsequently denied help minimize an employer’s unemployment tax rate. The rate can vary between 0.7 percent and 8.4 percent of each employee’s first $12,740 in earnings. The 2011 average unemployment tax rate among Illinois employers is 3.8 percent, or about $485 annually per employee ($420 in 20010).
     
“With the downturn in the economy, unemployment remains at record highs (10 percent in Illinois) and a drain on the Illinois Department of Employment Security trust fund, markedly higher tax rates for 2011 and probably for a couple of years after that,” said Paul Schardt, an Xchanging senior vice president.
     
“The unemployment tax is really the only controllable tax, in that it’s experience-driven,” Schardt said. An ex-employee’s claim affects the employer’s tax rate for three years.
     
For new enrollees, client fees amount to $2.60 per employee, per fiscal quarter. For the fee, Xchanging monitors all unemployment claims; files any appeals; prepares employer witnesses for hearings, as necessary; represents the client at any hearings; verifies the benefit charge statements; and confirms the client’s unemployment tax rate.
     
To discuss retaining the company, call Schardt at (773) 824-4325.
 
 

Back