501(c) Services

Frequently asked questions

These questions and answers were designed to help you resolve common plan issues quickly.

Reimbursement and reserve accounts

• How does the reimbursement process work?

  Each participant builds its own reserve account to pay for future claims. The plan reimburses the state for actual claims with money from this account.

• How does the plan calculate how much each participant deposits into its reserve account?

  The experience rating process used by the plan has been developed and refined over the years to reflect the experience of each participant, allowing for maximum control of costs through controlling claims.

  The calculated deposit includes amounts for estimated claims and operating expenses as well as an amount calculated to build the participant's reserve account to the targeted goal over 10 years. Since reimbursing employers in most states have no other reason to calculate taxable payroll for unemployment purposes, we base our calculations on gross payroll.

  We also bill for deposits in equal quarterly amounts, instead of billing for a larger deposit in the first quarter or two of the year.

• When should we make payments?

  You will be billed by the Boy Scouts of America national office. The amount is based on your claims history and the size of your council, and is set to provide adequate funds for your current claims and to build reserves to cover future payments. If you expect increased claims for any reason, you should contact us to discuss adjusting your deposits.

• What is the plan's reserving policy?

  Each participant has a reserve account. Participants' quarterly deposits and investment income are added to their own reserve account, and their benefit claims and expenses are paid from their reserve account. The balance in this account is built up over a period of 10 years to equal approximately 2.0% of gross payroll. This level is established to provide stability of annual deposit amounts for improved budgetary planning while limiting the size of the reserve to each participant's actual risk.

  The risk, as mentioned elsewhere, is kept at a very low level by our unique stop loss coverage. The reserve account target does not fluctuate with changing patterns of claims activity, and no other participant funds are retained for estimated claims. Each participating council owns all the funds in its interest-bearing reserve account, which can be withdrawn promptly without penalty.

• What if our reserve account balance isn't enough to cover bills from the state for reimbursement?

  The liability for payment of benefit charges up to the level of stop loss attachment is solely the obligation of each participant. The plan acts as an agent in meeting this obligation, establishing deposit reserves based on the historic claims data of each participant. Charges in excess of the deposit reserve remain the obligation of the participant.

• What types of reports can we expect to receive regarding our activity with the plan?

  Clear reports are provided to participants to help them understand their account activity and their claims experience. For example, we send participants an annual report of the activity in their individual reserve account, the components of the new experience-rated calculation of their deposit, and a projection of next year's activity. We encourage questions and discussions that help us work together to control claims and lower costs.

• When can we get a reserve account activity statement?

  The plan operates on a calendar year, so you will receive your activity statement after the end of the calendar year. You can also contact the plan administrator at any time for a statement covering any period you or your auditors require.

• Who do we call to get information about our reserve account?

  Contact the plan administrator at (800) 442-4867.

• Why doesn't the amount of benefits paid on the charge activity report from the claims manager match the benefits paid on the reserve account activity statement for the same period?

  Your reserve account activity statement will always show a different amount from your charge activity report because the time period covered is slightly different. Your charge report shows benefits paid by the state for the calendar year, from January 1 through December 31. Your reserve account activity statement shows reimbursements made to the state during the calendar year, which generally corresponds to claims paid by the state from October 1 of the previous year through September 30.

State procedures

• We received an unemployment claim notice from the state. What should we do?

  Fax the notice to your claims manager. Always send claim notices to the TALX UC eXpress team even if the notices are for claims that you do not want to contest or that you feel are non-contestable. All unemployment claims have deadlines, so sending notices immediately is important.

  You should also send the TALX UC eXpress team any other unemployment-related documents you receive, including initial, additional, or out-of-state claims; charge-back notices; determinations or rulings; hearing notices; and decisions. In some cases, the TALX UC eXpress team will have already received copies from the state, but it's better that they get redundant copies than none at all.

• Now that we have joined the plan, do we still file quarterly wage reports with the state?

  You still need to file these reports with the state, but you will no longer pay unemployment taxes. Be sure to send a copy of the quarterly wage report to the plan administrator. To help you remember to send this report, we mail reminders to all participants.

• We received a notice from the state that the amount of our security deposit has changed. What should we do?

  You should notify the plan administrator of all requests for security and forward any notices of changes in the amounts or expiration dates of bonds. Many states require a security deposit as assurance of payment from reimbursing employers. The amount varies by state but is typically based on a percentage of payroll.

  The most common type of assurance is a surety bond, but some states may request a cash deposit or prepayment of estimated claims. If your state requires a security deposit, we will obtain the surety bond for you and deduct the annual fees from your reserve account.

• We received a bill from the state for reimbursement of benefits paid. What should we do?

  Do not pay the state. Contact the plan administrator immediately. We will ask you to fax us a copy of the bill at (800) 449-8563 so that we can make a timely payment to the state and correct any situation preventing normal processing. The state usually sends these bills directly to your claims management team, who then sends approved bills to us for payment.

HR issues

• We may have to consider layoffs at our council. Is there anything we should do in advance to reduce the unemployment costs resulting from the layoffs?

  Contact TALX UC eXpress at (800) 955-4351, ext. 7, as soon as possible to begin planning. Taking steps six months or more in advance can be helpful in reducing costs.

• We are considering a merger with another council. How would this merger affect our participation in the plan?

  The answer depends on which council will be the surviving council and whether that council has chosen the reimbursement method. Contact the plan administrator to discuss your options. You may also want the claims management team to help you review the other council's unemployment history.

• How can we determine who will be eligible for unemployment benefits?

  This is a complex question. In some situations, employees who resign voluntarily may be eligible. Contact the claims management team to be certain, especially if there are any unusual circumstances.

  Other issues

• As a reimbursing employer, do we pay the federal unemployment tax?

  As a 501(c)(3) organization, you are exempt from paying the federal unemployment tax. If you have been making these payments, you should contact the IRS and request a refund.

• What can we do to control our unemployment costs?

  UC eXpress is happy to help you with any concerns regarding potential or existing claims. Call TALX UC eXpress at (800) 955-4351, ext. 7, for information. We also hold informative workshops and live meetings around the country. Check out our upcoming workshops or call Doug Adams at (800) 442-4867 to schedule a workshop in your area.