The goal of almost every employer is to maximize profits by reducing operating costs whenever and wherever possible. The costs generated by excessive unemployment claims is an issue of particular concern for most employers. Challenging every unemployment claim would therefore seem to be a good business decision. It can have a significant impact on the tax rate the employer must pay to help fund unemployment insurance. The fewer the successful claims the employer has, the lower the tax rate. However, contesting every claim may not necessarily be the best strategy. There may be good reasons for not contesting some claims.
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