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Power of Attorney Authorizations: How We Receive and Manage Your Claims

By March 27, 2025No Comments

501 and your unemployment claims manager aim to remove the administrative burden associated with unemployment claims. A large part of that burden is associated with incoming mail and communication to and from state workforce agencies, including unemployment claims, state calls, decisions, hearings, wage audits, and more.

How is that accomplished when the individuals for whom claims are received did not work for us, but your organization?

The Power of Attorney (POA) Authorization Process

The Power of Attorney (POA) authorization process is a key component of your unemployment program, which is constantly evolving and requires ongoing monitoring. Our team of POA experts is dedicated to the creation, tracking, and troubleshooting of these documents.

Why Is POA Authorization Needed?

The POA authorization process gives your unemployment claims manager the legal authority to receive and respond to unemployment correspondence on your behalf. It allows us to become your organization’s official address of record for all unemployment-related items. This redirects paperwork from your corporate office or locations and sends it directly to your unemployment claims manager, where it is processed, appropriately filed, and communicated as needed.

In addition to directing documentation, POA authorizations allow your unemployment claims manager to correspond with state workforce agencies on your behalf. This enables us to speak with these agencies and handle each step of the unemployment process—from initial claims to decisions, benefits charges, and unemployment tax rates.

State Modernization Updates

As technology changes, state workforce agencies are adapting their systems to reflect these advances and make all aspects of the unemployment process more user-friendly for employers, third-party administrators, and claimants.

To do so, state workforce agencies are introducing more efficient ways to grant authorization to third parties who work with employers. This includes transitioning away from paper POAs in many cases, opting for electronic authorization forms or a combination of paper and electronic. Many states have already rolled out new platforms while others are in development.

Determine Who Has Access to Your State Accounts

When POA authorization and other activities move online, you must be able to access your account to complete these actions. Your unemployment claims manager is frequently asked about 501 member account information, but unfortunately, we do not typically hold this information for your state employer accounts.

Before you find yourself needing state account log-in credentials, it is recommended that you gather this information for future use.  Your organization’s payroll professional often has the necessary credentials; however, this varies by organization. If there has been recent turnover, the accounts may no longer be accessible. Reaching out to the state before you need access can help prevent delays or missed deadlines due to account inaccessibility.

If you haven’t already, sign up for email newsletters and notifications from all states where you are registered or plan to be. These communications provide information on upcoming changes, system downtime, deadlines, and training webinars available to employers. Updates often cover not only unemployment matters but also paid leave, income taxes, government updates, and more. You can also customize the types of communications you receive.

Pack Your Patience

While state modernization prepares us for the future of unemployment, there will be hiccups along the way. While these growing pains are an inevitable part of the process, your unemployment claims manager works closely with the state agencies to ensure that these pain points are addressed efficiently.

A Continual Process

501’s commitment to POA management goes beyond a one-time task during implementation. Rather, it is an ongoing effort that requires diligence and coordinated efforts throughout our partnership.

Whether you are adding new states or accounts to your organization or noticing a sudden influx of incorrectly addressed claim documents, the POA authorization process remains a critical component of our unemployment partnership.

Therefore, it is essential to communicate with your unemployment claims manager about any organizational changes that may be occurring, including mergers, acquisitions, and/or reorganizations. We are here to help ensure a smooth partnership and eliminate the administrative burden associated with unemployment.

Did You Receive a Claim Directly

From time to time, you may receive a claim or other unemployment documentation directly and wonder why it was not sent to 501. Sometimes, states make errors or have processes that result in documents being sent to you or one of your locations.

The best practice is to forward any UI documents you receive to your unemployment claims manager. This ensures the document is reviewed and handled appropriately and in a timely manner.


About Us

For more than 40 years, 501(c) Services has been a leader in offering solutions for unemployment costs, claims management, and HR support to nonprofit organizations. Two of our most popular programs are the 501(c) Agencies Trust and 501(c) HR Services. We understand the importance of compliance and accuracy and are committed to providing our clients with customized plans that fit their needs.

Contact us today to see if your organization could benefit from our services.

Are you already working with us and need assistance with an HR or unemployment issue? Contact us here.

The information contained in this article is not a substitute for legal advice or counsel and has been pulled from multiple sources. Some information was provided by our friend, Darby Gibson, Client Marketing & Insights Specialist, at Thomas & Company.

(Images by Isaac1112 and Creative Art)

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