Most cities are considered to be reimbursable employers for purposes of returning funds to the Department of Labor for unemployment insurance claims. A reimbursable employer only pays the state in an instance where unemployment is paid to a terminated employee. By contrast, tax rated entities pay into the unemployment fund quarterly based on a tax determined by the company’s claim experience.
Since 1992, GMA has offered a program administered by TALX, formerly The Frick Company, to assist cities with the filing and appeal of unemployment claims. Unemployment is generally paid to employees that are terminated due to no fault of their own in a process designed to favor the terminated employee. This is another reason to take advantage of the assistance. Another benefit of membership is verifying the reimburseable employer's quarterly bills for accuracy. During 2007, TALX discovered$11,278 in potential errors on behalf of program members.
In 2007 GMA’s 109 program participants saved $970,527 in potential unemployment payments to former employees. Overall, cities won 77% of protestable claims filed by terminated employees.