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More of the Basics:

Simple answer: Lower UI tax rates.

Detailed answer: SIDES and SIDES E-Response were created to streamline the UI process across the states and provide an easy, effective, and secure way for state UI agencies and employers/TPAs to exchange information.  One of the three largest causes of UI overpayments is incorrect initial eligibility decisions (job separation issues).  Many UI overpayments, which could be prevented by receiving timely and accurate separation information, negatively impacts an employer's bottom line. In fiscal year 2015, the UI system paid $31.1 billion in UI benefits. The USDOL estimates that 16.16% percent, or more than $506M of these benefits, were improperly paid due to incorrect initial eligibility determinations.  Improper payments results in higher UI Tax rates.  Increasing the quality and timeliness of separation information received from employers means more quality initial eligibility determinations, less improper benefit payments, less employer charging, and lower UI Tax rates.

Using SIDES & SIDES E-Response: