As a reimburseable employer, your entity is responsible to pay for every claims dollar that the Dept. of Labor pays out to claimants in a given quarter. It is difficult to determine what your claims expense will be in a given year. In the VSBIT program, your rate is based on three years of historical claims which are then averaged. For example, the FY21 rate is based on FY17 - FY19 claims and is announced in January 2020 which allows you to build the appropriate expense into the budget. This also allows for a more consistent budget. If you have one abnormally high claims year, the burden is spread over three years of contributions into the VSBIT program.
VSBIT partners with Equifax, previously TALX, to provide consultation and administration of unemployment claims, decisions, and hearings. This includes online management reports which outline unemployment activity, results, and compliance metrics.
During FY19, member districts had a total of 841 unemployment claims; 69% of which were protested with a 90% win rate. This removed a potential liability of just under $533,000 dollars. While some of these claims would have been protested and won without the support of Equifax, certainly the expertise that they provide resulted in a much better protest and win rate than our membership would have realized without their involvement.