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Xchanging deflects unemployment claims of CATA member dealers

November 16, 2010

One hundred forty-two CATA dealer members reported a combined 942 unemployment claims during the third quarter of 2009 to Xchanging, which formerly operated as Cambridge Integrated Services Group. The company’s efforts saved those dealers a total of $1.46 million in benefits by contesting the claims.

Xchanging monitors any unemployment claims against its clients and contests all unwarranted claims and charges; and preps employer witnesses for hearings, as necessary. The company counts about 230 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 0.6 percent and 6.8 percent of each employee’s first $12,300 in earnings. The 2009 average unemployment tax rate among Illinois employers is 3.1 percent, or about $381 annually per employee.

"These numbers were based on experience prior to July 2008. With the downturn in the economy, unemployment at record highs (8.5 percent in Illinois) and a drain on the Illinois Department of Employment Security trust fund, we can expect markedly higher tax rates for 2010 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," said Paul Schardt, senior vice president of Cambridge. An ex-employee’s claim affects the employer’s tax rate for three years.

For new enrollees, client fees amount to $2.20 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.

Xchangingoriginaly named the Martin Boyer Co., has represented CATA members since 1978. To discuss retaining the company, call Schardt at (773) 824-4325.