Saltillo changes unemployment claim system

By Cain Madden/NEMS Daily Journal

SALTILLO – Saltillo is looking to save more than $4,000 a year by switching the way it handles unemployment claims.
Previously, the city had made monthly payments of .5 percent of its payroll, $350 per month, to the state as a form of insurance, guaranteeing it would get its money back on a bad claim.
Now, the city will become a reimbursable employer with the Mississippi Department of Employment Security. If a claim is made, the city would have to pay it no matter what system it is under.
City Clerk Mary Parker said there has only been one claim in Saltillo in the six years she has worked as city clerk, and with so few claims, it did not make sense to pay for unemployment claim insurance.
“It is going to save us money,” Mayor Bill Williams said. “For that alone in these economic times, I think it was a good decision.”
Under the reimbursable option, the city is required to keep 2 percent of its payroll, or $6,000, in a trust fund. Which is added to or taken away as the number of employees increase or decrease, or as a claim is paid out.
“The money is already there, we just have to maintain it at 2 percent,” Williams said.
The Board of Aldermen voted unanimously for the change.
cain.madden@journalinc.com