Earlier this month, Maine’s Department of Labor launched a new, secure website that lets employers report unemployment information in a timely manner to comply with new federal requirements that take effect this Oct. 20.
The new State Information Data Exchange System (SIDES) E-Response free website lets employers and third party administrators file separation and wage information about workers who have left their jobs and who may file for unemployment.
The online system falls in line with Gov. Paul LePage’s mission to save the state, and businesses, time and money.
“One of my priorities is making it easier and less costly for businesses to comply with government regulations,” he said in a written statement. “The E-Response program is a good example of how we can use technology to make government more responsive to the needs of job creators.”
Congress is requiring all states to have laws in place by Oct. 20 that would penalize employers who fail to respond to separation and related requests in a timely manner. The SIDES E-Response system aims to make it easier for employers to file the information more quickly.
Separation requests include information on whether the employee quit voluntarily, was fired for misconduct, or was laid off or if there was a lack of work. The latter two are eligible for unemployment, whereas quitting and firing for misconduct are not.
Another unemployment system called SIDES has been in place since 2012, but that is typically used by multi-state employers and payroll companies. The SIDES E-Response is better suited to small companies, explains Julie Rabinowitz, spokesperson for Maine DOL. Currently, small employers in Maine are filling out the information by hand or over the telephone.
Potential penalties aren’t straightforward, explains Rabinowitz. LD 1311, the act to amend unemployment compensation, is proposing the minimum penalty that is required in the federal legislation. The penalty will vary from employer to employer, she says.
The timing for responses is triggered by a former employee filing a claim. Employers are then sent requests for separation information and are given a specific date (around two business weeks) by which to respond, she says.
She adds that 47 employers enrolled in SIDES E-Response in the first week.