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The Company is a large corporation based in Alaska. The division of this company that I worked for is incorporated in Alabama. I worked for the Alabama division in the state Hawaii for the past six months. Previous to working for this company I was employed in Tennessee since July 2012.
I was terminated. I emailed the HR department and asked if I could file a UI claim in HI. They informed me that they 'did not pay taxes in HI nor were UI taxes paid to HI on your behalf' and to 'let the state you file in know they paid UI to the state of Alabama.' I was also informed, 'your payroll was only processed in Hawaii so you should not file a claim in HI as it will be rejected unless you are living here.'
Sounds kinda odd to me.
I've been on UI before and my understanding is that the company you work for is required to pay UI taxes in the state where you worked. If I worked in several different states, these wages are combined and I can file a claim with the state I choose. FYI, I am currently living in Florida.
Was this company required to pay UI taxes in the state of HI?
Should I file a claim with the State of HI?
Should I notify the State of HI regarding this matter?
Please advise as to how to proceed in this matter.
I've been on UI before and my understanding is that the company you work for is required to pay UI taxes in the state where you worked.
Not always. State laws vary. If the employer does not have an EIN in the state where you are employed, state law may allow employer to pay UI taxes to the state of corporate/division domicile rather than where you work. I have read of people working in NJ, but not being paid by NJ b/c employer did not have a NJ EIN.
Found this on the State of Maryland website:
Quote:
What if my business has employees working in several states?
Services performed within this state, or both within and without this state are to be reported to Maryland if:
The service is localized in Maryland; or,
When there is employment in more than one state and some service is performed in the state where the base of operations is located, then the earnings are to be reported to that state where the individual's base of operations is located. If no services are performed in the state with the base of operations and some services are performed in the state where direction or control is received, then the earnings are to be reported to the state where the individual's direction or control is received. If there are no services performed in the state where the base of operations is located or where direction or control is received, then the individual's state of residence is to be used.
The objective is for all services performed by an individual for a single employer to be covered under one state law, wherever the services are performed. Employers may elect to cover an employee through a Reciprocal Coverage Agreement between states.
It would appear, based on what your HR people told you, your company probably has such a Reciprocal Agreement. Clearly, the companies can choose to pay taxes to those states providing the lowest benefits - thereby keeping their UI taxes low, as well.
Quote:
Originally Posted by hangininthere
If I worked in several different states, these wages are combined and I can file a claim with the state I choose. FYI, I am currently living in Florida.
Maximum benefits paid by the states in question are:
Alabama - $265
Hawaii - $560
Tennessee - $275
Quote:
Originally Posted by hangininthere
Was this company required to pay UI taxes in the state of HI?
Probably not.
Quote:
Originally Posted by hangininthere
Should I file a claim with the State of HI?
Should I notify the State of HI regarding this matter?
Normal procedure would be to file in the state in which you were last employed. You can try first filing in HI to get a determination - and hopefully the highest benefit. Chances are you won't get benefits from Hawaii if what your HR people told you is correct and there is a Reciprocal Agreement. If you file now, your benefits will be based on earnings January-December 2012 - when you were working 6 mos. in Tennessee, 6 mos. in HI.
Otherwise, the place to file would be Alabama where the division is domiciled and taxes have been paid.
Please give us an update on your situation. Thanks.
Last edited by Ariadne22; 06-28-2013 at 02:07 PM..
I appreciate your quick and thorough response, nice piece of work and thank you for your time. It appears likely I'm out of luck for the UI benefits in HI, hopefully I'll qualify in AL.
You wrote: If you file now, your benefits will be based on earnings January-December 2012 - when you were working 6 mos. in Tennessee, 6 mos. in HI.
~ Q: Should I file now or wait until the first or second week in July so that additional months or quarter will be included in the calculation of benefits?
Q: What happens should I move to HI? would I then be able to claim UI benefits in HI?
You wrote: If you file now, your benefits will be based on earnings January-December 2012 - when you were working 6 mos. in Tennessee, 6 mos. in HI.
~ Q: Should I file now or wait until the first or second week in July so that additional months or quarter will be included in the calculation of benefits?
Yes, if you wait until July, nine months of your HI employment would be in your base-year earnings, which would certainly make for a stronger case for HI benefits. I would still try filing in HI first. Based on reports here, HI is very accessible to claimants via phone. I think you'll find AL somewhat more frustrating to deal with.
If your later earnings were higher, then, yes, wait until July - which will help the measly AL benefit, as well. It's only a few days away. No biggee.
Quote:
Originally Posted by hangininthere
Q: What happens should I move to HI? would I then be able to claim UI benefits in HI?
I can't answer that for sure. Based on what your HR dept told you - the answer is possibly. You may want to ask HI about that if they turn you down initially. CA, probably the most claimant-friendly state in the country, has denied CA residents when employer doesn't pay taxes to CA. HI may do the same. Again, I can't answer that for sure.
Last edited by Ariadne22; 06-28-2013 at 03:04 PM..
Never ask your employer questions about UI. They won't know nor have your best interest at heart.
If you worked in HI, and think you qualify for a claim there, and it's going to provide you with the best benefit, then that is where you file.
The employer can say, "we didn't pay taxes there," and if HI concludes they should have, they'll collect the money, and you'll get your benefits.
If HI declines to pay, and you agree that they shouldn't, the fact that you applied in HI first establishes a good cause for getting your claim backdated when you file in your second choice location.
As advised, I first filed w/Hawaii, spoke with a case manager and was informed they showed no wages. I then filed w/Alabama, spoke with a case manager, they showed wages, and I was informed I could open a claim with in Tennessee or Alabama, I chose AL. When asked by the case manager why I am no longer employed with the company, I informed her I was terminated. When she asked me why I was terminated, as advised, I replied, " I think it would be better if you asked the employer that question."
I received benefits from Alabama. I never received a letter or call inquiring as to why I was terminated.
Thanks Ariadne22 and thanks Chyvan your advice was perfect.
Hope this post helps others.
~
Here is another question. I believe I've found a construction job in Ohio, likely will last until the deep cold weather sets in. When that project ends and I am laid off, can I then open claim in OH?
Here is another question. I believe I've found a construction job in Ohio, likely will last until the deep cold weather sets in. When that project ends and I am laid off, can I then open claim in OH?
Of course, attempt to do that first. Ohio's benefit is better. Again, consider waiting until the quarter turns for the best benefit. If Ohio will not open a claim for you before the bye of the AL claim, then you have no choice but to reopen the AL claim.
Here is OH's handbook. You can calculate your benefit and best time to file from that:
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