Document Sample

                                     State of Delaware
                                    Department of Labor

                                      State of Delaware
                                    Department of Labor
                            Division of Unemployment Insurance

    The "Unemployment Insurance Handbook for Employers" is designed to serve as your guide
    to Delaware's unemployment insurance system.

    Changes at both the state and federal level continue to occur in this important, but often
    complex area of the law. As an integral link and partner in the unemployment insurance
    system, it is important the employer community be aware of statutory, regulatory, and
    procedural requirements.

    Use of this handbook as a ready reference guide will give you a better understanding of the
    Delaware Unemployment Compensation Law and make compliance easier.
                            SUMMARY OF SECTIONS

Section                                                      PAGE

     INSURANCE COSTS                                          4.

     This section provides guidelines on how to approach
     the claims and appeals processes. It also outlines
     some precautionary measures which may help to avoid
     improper charges to an employers' account.


     This section explains the purpose of the Unemployment
     Insurance Program. It also lists the basic
     eligibility requirements of workers and describes how
     the unemployment insurance tax is collected.

III. EMPLOYMENT                                               8.

     This section defines "employer" and "covered
     employment" as specified in the Delaware Unemployment
     Compensation Law.

 IV. EMPLOYER LIABILITY                                      10.

     This section specifies the criteria used to determine
     an employer's liability under Delaware State Law.


     This section describes in detail the action required
     of assessed and reimbursable employers by the
     Unemployment Insurance Division to be in compliance
     with the Law.

Section                                                      Page

 VI. TAX LIABILITY                                            14.

     This section defines taxable wages and explains how
     the assessment rates for newly liable employers are

 VII. EXPERIENCE RATING                                        15.

     This section defines terms used in the experience
     rating process and explains how an individual
     employer's assessment rate is determined. Also in
     this section are instructions for transferring
     experience rating and creating a joint account.

VIII. THE REIMBURSEMENT OPTION                                19.

     This section describes the benefit reimbursement
     method available to most non-profit organizations
     and government entities and how to elect this
     option. It also describes how benefits are charged
     to these employers.

  IX. CLAIMS AND BENEFITS                                      22.

     This section describes the benefit payment programs
     available to workers and explains who is eligible
     to receive them. It describes the claims process
     and defines some terms used in benefit determination.

   X. THE APPEALS PROCESS                                      25.

     This section describes the "due process" remedies
     available to employers and unemployed individuals
     who disagree with administrative determinations.

Section                                                                    Page


                  This appendix provides employers with information
                  on the use and application of unemployment
                  insurance forms to facilitate compliance with
                  regulations of the Division of Unemployment

              UC-1            Report to Determine Liability                28.
              UC-8/UC-8A      Employer's Quarterly Report                  30.
              UI-QPR-2        Quarterly Payroll Report for Reimbursable
                              Employers                                    32.
                              Delaware Employment Training Fund            33.
              UC-119          Request for Separation Information
                              (Base Period Employer)                       34.
              UC-119C         Request for Separation Information
                              (Last Employer)                              34.
              UC-12           Notice of Benefit Wages Charged              36.
              UC-400          Application for Rehire Credit                37.
              UC-401          Statement of Benefit Wage Credits
                              for Rehire                                   38.
              UC-409RC        Statement of Benefit Wage Credits
                              for Rehire Denial                            39.
              UC-301          Notice of Hearing (Intrastate)               40.

APPENDIX II.           EMPLOYER ASSESSMENT RATE TABLES                     41.

                       The basic assessment rate for each employer for a
                       calendar year is determined prior to the due date
                       of the first basic assessment for that year in
                       accordance with these tables. Please refer to
                       Section VII of this handbook and Section 3350,
                       Title 19 of the Delaware Code.

APPENDIX III.          DIRECTORY OF OFFICES                                57.




     A.    General Precautions

            We depend on you, the employer, to supply us with information
            necessary to process claims promptly and efficiently. You can aid
            us greatly by maintaining the required employee records in the form
            in which they will be used by the Department. Guidelines on the
            proper method of record keeping are provided in this handbook.

            It is your responsibility to provide prompt and accurate
            information to insure that only those claimants meeting the
            necessary eligibility requirements will receive benefits. This
            action will avoid unnecessary charges to your account.          In
            addition, without your testimony at an appeals hearing, there is
            only the employee's account of the separation to guide the Appeals
            Referee or the Unemployment Insurance Appeal Board in making a

            You can make this process more efficient by documenting employee
            actions which lead to termination for cause and by having the
            employee sign it. In the case of a firing, the burden of proof is
            on the employer to show that it was for just cause.

            You should also clearly state the policies of your business
            regarding acceptable employee behavior in writing and give each
            employee a copy to avoid misunderstanding.

            You can help control costs by notifying the appropriate local
            unemployment insurance office immediately when you think an
            individual doesn't qualify for benefits, i.e. you have offered
            suitable reemployment which is refused.

            Remember that unemployment insurance benefits are provided to
            employees from your tax dollars.

     B.   What the Employer Can Do to Avoid Costly Mistakes

            One way to protect your rights is to maintain proper records on all
            employees and to document any violation of rules and regulations.
            For example:

            1.    All employees should be made aware of company rules and
                  regulations.   It is best to give them a written copy of
                  these rules and ask them to sign a copy to be placed in
                  their personnel file. It should be stated to the employee
                  that disregard of company rules could result in disciplinary
                  action or discharge.

      2.    Unless an offense is so great that the employee is to be
            immediately dismissed and unless the employee is aware that
            committing such an offense is cause for immediate dismissal,
            a warning should be given and the employee allowed another

            a.    Verbal and Written Warnings.

                  (1)   When a supervisor speaks with an employee about
                        any phase of his work which is unsatisfactory, a
                        documentation of the verbal warning should be
                        made for the personnel file.

                  (2)   If the employee has disobeyed one       of the
                        specified company rules, a written      warning
                        should be issued:

                        (a)   The offense should be listed along with
                              the observer's remarks about the incident.

                        (b)   The employee should be given space to
                              state his version of the incident.

                        (c)   The employee should be asked to sign the
                              form, if only to acknowledge that he has
                              been warned, whether or not he agrees with
                              the warnings.

            b.    If a written warning notice is required by a union
                  contract, a copy should be sent to the union, via
                  certified mail, with a return receipt requested. The
                  employee should be provided a copy as required.

C.   Discharge for "Just Cause" Connected with the Work

      1.    Be certain employees to be discharged are aware of the
            company rule which was broken.

      2.    Be certain that the employee was warned that his actions
            might result in discharge.

      3.    After several warnings or suspension, document the reason
            for the discharge. If possible, the employee should sign a
            form acknowledging the reasons for discharge.

      4.    Indicate on the "Separation Notice" (Forms UC-119/UC-119C)
            as specifically as possible, the reason for discharge.

      5.    If an employee is guilty of a willful or wanton disregard of
            the last employer's interest, deliberate violation of the
            employer's rules, disregard of the standards of behavior
            which an employer has the right to expect, or gross
            negligence in the performance of duties, and is discharged,

            this termination of employment may be considered for "just
            cause   connected  with   the  work"  and   result  in   a
            disqualification for benefits (Abex v. Todd, Delaware
            Superior Court, 1967).

            The key words here are "willful" and/or "wanton".      Legal
            precedent states that, "Misconduct”, as used in unemployment
            compensation statutes does not mean mere inefficiency,
            unsatisfactory conduct or failure of performance as a result
            of inability or incapacity, inadvertence in isolated
            instances or good faith errors of judgement" (Starkey v.
            Unemployment Insurance Appeal Board, Delaware Superior
            Court, 1975).

D.   Voluntary Quit

      An individual will be disqualified for benefits after leaving work
      voluntarily without good cause attributable to such work.      The
      burden of proof for a voluntary quit is on the employee to show
      "good cause" attributable to such work for voluntarily terminating


      The Unemployment Insurance Program established by the Social
      Security Act of 1935, arose from the need to provide workers with
      funds for non-deferrable expenses while between jobs. Unemployment
      Insurance is not welfare. Benefits are paid as a matter of right,
      without regard to need, to eligible claimants who meet conditions
      fixed by law. To qualify, workers must have earned sufficient
      base period wages from covered employers, have become unemployed
      through no fault of their own, and be able to work, available for
      work and actively seeking work (Section 3315, Title 19, Delaware

      The unemployment insurance benefits paid to eligible, out of work,
      individuals comes from a trust fund contributed to by employers
      who are subject to a quarterly payroll tax on the taxable wages
      paid to each employee during the year. Workers do not pay any
      part of the Delaware tax, and employers can make no payroll
      deductions for this purpose.    Assessed employers can receive a
      credit up to 5.4% toward the 6.2% Federal Unemployment Tax (FUTA).
      The amount of credit an employer receives is determined by State
      contributions which they have paid under an approved State
      unemployment insurance law. The Federal government then returns
      part of these monies collected from the Federal unemployment tax
      to the States to pay the cost of unemployment insurance program
      administration. The rest of the money goes to pay the cost of
      administration of the unemployment insurance program at the
      Federal level.

      The Unemployment Insurance program assists in stabilizing the
      economy because it allows wage earners to maintain consumption
      expenditures when they lose their jobs, maintains an available,
      skilled labor force, and encourages employers to provide more
      stable employment.


  A.    Employing Unit

         1. "Employing unit", for unemployment insurance purposes, means
            any individual, partnership, corporation, or any other type of
            organization, that has in its employ one or more individuals
            performing services within this State. "Employing unit" also
            means any governmental entity which has in its employ
            individuals performing services in this State.

            A “common paymaster” is not recognized as an employer and may
            not pay assessments with respect to wages for another employing

            An “employee leasing company”, a “professional employment
            organization (PEO)” or any other similar entity shall not be
            considered to be the employer of any leased employees.      The
            services performed by leased employees shall be considered to
            be services performed for the “employer client company” of the
            “employee    leasing   company”,    “professional    employment
            organization (PEO)” or any similar entity and the “employer
            client company” shall be considered to be the employer of its
            leased employees. An “employer client company” shall be
            responsible for reporting the gross wages of its leased
            employees to the Division of Unemployment Insurance on Form UC-
            8A (Quarterly Payroll Report) and for paying any assessments
            due on the taxable wages of its leased employees to the
            Division of Unemployment Insurance as reported on Form UC-8
            (Quarterly Tax Report).

         2. "Employment", for the purpose of U.I. coverage, is defined as
            any service, unless specifically excluded, performed by an
            individual for remuneration under a contract of hire, whether
            the contract is written or oral, express or implied (Section
            3302)(10) and (21).

         3. "Employment" also includes:

               a. Service performed by an individual in the employ of this
                  State or its local governments.

               b. Service performed by an individual employed by a
                  religious, charitable, educational or other organization,
                  if the organization had four or more individuals in
                  employment for some portion of a day in each of 20
                  different weeks, whether or not the weeks were
                  consecutive.   An exception to this provision would be
                  church related schools.

  B.    Exclusions from the Definition of Employment

         Employment for the purpose of U.I. coverage does not apply to
         services performed:

          1. In the employ of a church (except as specified above).

          2. By a minister of a church in the exercise of his ministry.

          3. By an elected official in the exercise of his duties.

          4. By a member of a legislative body or member of the judiciary.

          5. By a member of the State Army National Guard or State Air
             National Guard.

          6. By an employee serving on a temporary basis in case of an

          7. By an insurance agent or real estate agent if such service is
             performed for remuneration solely by way of commission.
             However, employer paid fringe benefits such as health, life, or
             disability insurance are non-commission forms of remuneration
             that bring the service of a commission based insurance agent or
             real estate agent under the definition of covered employment.

          8. By an individual in the employ of his son or daughter or
             spouse, and service performed by a child under the age of 18 in
             the employ of his father or mother.      (Does not apply to a

          9. In the employ of a nonprofit organization operated exclusively
             for religious, charitable, scientific, testing for public
             safety, literary or educational purposes, or for the prevention
             of cruelty to animals or children, or for any political
             campaign on behalf of a candidate for public office (except as
             specified in the section on EMPLOYMENT above).

          10.In the employ of a school, college or university, if such
             service is performed by a student who is enrolled and is
             regularly attending classes at such institutions.

          11.By the principal of a proprietorship or the members of a

          12.As a direct seller as defined in Section 3508 of the Internal
             Revenue Code.

Pursuant to an amendment to Section 3302, Title 19, Delaware
Code, services performed by officers of closely-held corporations
on or after January 1, 1996 are considered covered employment and
the wages earned by these corporate officers are subject to
unemployment insurance tax.    Use of Form UIS-39 (Request for
Coverage of Corporate Officers)was discontinued at that time.


      A.    Liable Employers Under the Federal Unemployment Tax Act (FUTA)

             1. Agriculture Employers are liable with respect to any calendar
                year if:

                   a. they pay cash remuneration of $20,000 or more in any
                      calendar quarter in either the current or the preceding
                      calendar year, or

                   b. employ 10 or more individuals engaged     in agricultural
                      labor for some portion of a day in each   of 20 different
                      calendar weeks whether or not such days   were consecutive
                      in either the current or the preceding    calendar year.

             2. Employers of Domestic or Household Workers, including domestic
                service in a private local college club, or local chapter of a
                college fraternity or sorority, are liable with respect to any
                calendar year if the employer pays cash remuneration of $1,000
                or more in any calendar quarter of that year.

             3. Governmental Entities and Nonprofit Organizations       are   not
                liable under FUTA, but are covered by State law.

             4. All Other Employers are liable with respect to any      calendar
                year if they:

                   a. pay wages of $1,500 or more during any calendar    quarter
                      in the current or preceding calendar year, or

                   b. employ at least one person for some portion of a day in
                      each of 20 different calendar weeks, whether or not such
                      weeks were consecutive in either the current or preceding
                      calendar year.

            B.   Methods of Payment

                  Liable employers under the State U.I. law fall into two main
                  categories, contributing or reimbursing, depending on the
                  method of payment used to satisfy unemployment tax

                  Generally, most employers are required to pay unemployment
                  insurance assessments; however, nonprofit organizations and
                  government entities may elect to reimburse the Unemployment
                  Insurance Trust Fund for all benefits paid to their former

employees on a dollar for dollar basis.     This option is


      A.   Employer Account Number

            Each employer is assigned an employer account number by the
            Department of Labor upon receipt of a Form UC-1 (Report to
            Determine Liability) that establishes liability under the
            Unemployment Compensation Law.     This six digit account
            number (XXXXX-X) must appear on all correspondence and forms
            submitted by the employer to the U.I. Division.

      B.   Maintenance of Records and Filing of Reports

            The law requires that every employer maintain certain
            records for anyone employed in Delaware. These records are
            to be maintained for the period of the previous four
            consecutive calendar years and are subject to inspection by
            the Department of Labor.     For questions about specific
            records, contact the Division of Unemployment Insurance.

            Any employer legally required to file specified reports with
            the Department who neglects or refuses to do so within five
            days after the time when such reports are due, is subject to
            a fine of $17.25.

            The records must show at a minimum for each employee:

            1.    Name and social security number.

            2.    Gross and taxable wages for each payroll period.

            3.    All other payments made to the employee including
                  holiday pay, bonuses, board and lodging, tips, and
                  dismissal pay.

      C.   Display of Poster

            Each liable employer (except household employers) must
            display the poster, Notice of Coverage (Form UC-6), with the
            employer’s name printed on it in a place customarily
            frequented by employees. This poster is furnished by the
            Division of Unemployment Insurance after liability is
            established; it informs employees that employment is covered
            under the Unemployment Insurance laws.

            Household employers must provide each employee with a
            facsimile of the poster with the employer’s name printed on
            it.   The Division of Unemployment Insurance furnishes a
            facsimile of the full-size poster after liability is
            established; it informs employees that employment is covered
            under the Unemployment Insurance laws.

D.   Quarterly Assessment Reports and Payments

      All liable employers are required to submit for each
      calendar quarter, a summary assessment and payroll report
      with the amount of tax due.     A quarterly report must be
      submitted even if the employer has had no payroll in the
      quarter and whether or not any assessment is payable. The
      form for reporting (Form UC-8, Employer's Summary Assessment
      Report) is mailed to registered employers well in advance of
      the due date. It is the employer’s responsibility to notify
      the Department if the form is not received.      Failure to
      receive the form does not excuse the requirement to file by
      the due date. If the employer fails to file a quarterly
      report or if the report is incorrect or insufficient and is
      not filed within 30 days after the date on which the
      assessment report was due, the Department may make an
      estimate of the liability of that employer based on any
      information which the Department may have or obtain and may
      make demand upon the employing unit for payment. Written
      notice will be given the employer of the determination which
      may be appealed within 15 days after the mailing of the
      notice. However, this does not relieve the employer from
      his obligation to file a     report for the quarter(s) in
      question. In addition, assessments which remain unpaid on
      the date they are due and payable shall bear interest at the
      rate of 1.5% per month until past due assessments,
      penalties, and accrued interest are received by this

      Any employer who has any outstanding tax reports,
      assessments, penalties, or interest as of September 30 of
      any calendar year will be subject to a delinquent assessment
      rate effective January 1 of the subsequent calendar year.
      The delinquent assessment rate will be either 6.5%, 6.6%,
      6.8%, 7.0%, 7.5%, 7.6% or 8.4% depending on the balance in
      Delaware's Unemployment Insurance Trust Fund.     Currently,
      the delinquent assessment rate is 6.5%.

      The responsibility to register and comply with the reporting
      requirements of the Delaware Code rests with the employer.

E.    Reimbursable Employers

      Following the end of each month, nonprofit organizations and
      governmental entities electing benefit reimbursement will be
      billed for the amount due.    The monthly statement of the
      amount due will represent the total amount of benefit
      payments charged to the employer's account in that month.
      Payment is due within 30 days of the mailing date, after
      which time an interest charge of 1.5% per month will be
      assessed from the due date to the date of payment.

F.   Failure to Pay Assessments

      Failure to pay assessments when due or to reimburse for
      benefits paid, subjects the employer to possible civil or
      criminal action.

G.   Furnishing Information for Determination of Benefit Claims

      When a person applies for unemployment insurance, each
      employer for whom the claimant has worked in the first four
      of the last five completed calendar quarters, as well as the
      last employer, is required to furnish information on the
      reason for separation. To permit prompt determination of
      the claim, the information must be supplied within 7 days of
      the date contained on the "Separation Notice" (Forms UC-

      With the separation information supplied by the last
      employer, the Division determines whether or not the
      claimant is eligible for benefits.         With separation
      information supplied by the base period employer, the
      Division determines whether benefit wage charges should be
      made to the merit rating account of the employer. Employers
      should exercise care to complete the form correctly so that
      their accounts are properly charged.    If the form is not
      returned within the time specified by law, the employer
      shall be barred from claiming subsequently that a benefit
      wage charge should not be made with regard to the separation
      or that the worker to whom such notice applied should be


      The unemployment insurance tax you pay depends on the size of your
      taxable payroll and the rate of your tax. The taxable wage base,
      or the amount of "wages" for each covered employee on which
      unemployment insurance assessments must be paid, is determined by
      the Delaware legislature in accordance with a federally determined
      minimum. The taxable wage base is currently $10,500.00.

      "Wages" is defined as all remuneration for personal services
      including commissions, bonuses (excluding any attendance bonus paid
      during or incident to any period of unemployment), dismissal
      payments, holiday pay, and the cash value of all remuneration in
      any medium other than cash. “Wages” also include the employee’s
      contribution to a retirement or cafeteria plan. (This includes,
      but is not limited to, Section 401(K)and Section 125 plans.)

      New   employers,   except  those   in   North   American   Industry
      Classification System (NAICS) categories 236, 237 and 238 are taxed
      at the average employer assessment rate of all Delaware employers.

      The average employer assessment rate is determined by multiplying
      the total taxable wages paid by each employer, regardless of
      industrial classification category, during the 12 consecutive
      months ending on June 30 by the employers' assessment rate
      established for the next calendar year and dividing the aggregate
      product for all employers by the total of taxable wages paid by all
      employers during the 12 consecutive months ending June 30.

      New employers in NAICS categories 236, 237 and 238 (construction
      industry) are taxed at the average industry assessment rate in that
      employer's particular NAICS category or the average construction
      assessment rate of NAICS categories 236, 237 and 238 whichever is
      the greater.

      No employer's rate can be less than the assigned new employer rate
      for any calendar year until there has been employment in each of
      the two consecutive experience years (an experience year is the
      four consecutive calendar quarters beginning on July 1 of any year
      and ending on June 30 of the following year) immediately preceding
      the computation date of the employer's assessment rate for that


       A.    Before explaining how to determine the tax rates of
             employers who qualify for an earned assessment rate, it will
             be necessary to become familiar with several terms:

             1.    Experience Year - the four consecutive calendar
                   quarters from July 1 of any year to June 30 of the
                   next year.

             2.    Calendar Quarter - one of the four periods in a year
                   ending March 31, June 30, September 30, and December

             3.    Taxable   Wage   Base  -   the   wages,   subject  to
                   unemployment insurance tax, paid to covered employees
                   in any calendar year.

             4.    Employee's Benefit Wages - wages earned by an employee
                   during the base period.

             5.    Employer's Benefit Wages - the total of all employee
                   benefit wages paid by an employer during any
                   experience year.

             6.    Rehire Credit - a reduction in an employer's benefit
                   wage charges resulting from the rehire of an employee
                   during a claim benefit year before more than 75% of
                   the total benefits to which such employee was entitled
                   to receive have been paid.

             7.    Benefit Wage Ratio - the percentage obtained by
                   dividing the total benefit wages, minus rehire
                   credits, for the three most recently completed
                   experience years by an employer's total payroll
                   subject to assessments for the same three experience
                   years, as shown on his quarterly assessment reports.

             8.    State Experience Factor - total benefits paid from the
                   Delaware U.I. trust fund during the last three
                   experience years, divided by the total benefit wages
                   of all employers for the same three years.

             9.    Basic Assessment Rate - an employer's rate for any
                   calendar year is determined on the basis of his
                   benefit wage ratio as of June 30 of the preceding
                   calendar year.

Determination of Benefit Wage Charges, Rehire Credits
and Tax Rates

If there is more than one liable assessed employer in a claimant's base
period, each base period employer will be charged the amount of benefit
wages paid to the claimant by that employer during the claim base period.
Each base period employer will be liable to receive a maximum benefit
wage charge up to the taxable wage base. If a base period employer, who
is not the last employer, has paid for part-time employment during the
base period and continues to give the employee employment to the same
extent while the individual is receiving benefits as was given during the
base period, no benefit wages will be charged to the part-time employer.
Employers will also not be charged if they can prove to the satisfaction
of the Division that the employee was terminated for "just cause" or left
voluntarily without good cause attributed to such work.

Employers will be notified quarterly on Form UC-12 (Notice of Benefit
Wages Charged to Employer's Merit Rating Account) of any benefit wages
charged to their accounts or relief of any benefit wages previously

      Assessments payable by employers cannot be deducted from the
      wages of employees.

      Here is a calculation of an employer's benefit wage ratio.

              If the wage records looked like this:

 Experience     Taxable Wages    Benefit Wages   Rehire        Adj. Benefit
    Year          Reported          Charged      Credit       Wages Charged

    2007        $ 65,601.00       $ 2,516.00      $       0     $ 2,516.00
    2008          67,842.00         4,210.00              0       4,210.00
    2009          70,422.00         7,459.00          2,000       5,459.00

   Totals       $203,865.00       $14,185.00      $ 2,000       $12,185.00

              The benefit wage ratio would be 0.05976 or 6.0%

               i.e.,     $ 12,185.00
                                     = 0.05976

      Using the tax table for calendar year 2010 with a State experience
      factor of 52, this employer's effective assessment rate for
      calendar year 2010 would be 3.3% (a basic rate of 3.1% plus a 0.2%
      supplemental assessment rate).

      As may be seen by examining the ratio, the larger the payroll,
      i.e., the bigger the business, the smaller the effect of one more
      employee collecting U.I. benefits as opposed to a smaller business
      where the ratio will be increased by a greater amount.

An employer's basic assessment rate is determined by locating the
employer's benefit wage ratio and the State experience factor in
the following tables, Exhibits 1-8. (See Appendix II). For tax
years prior to calendar year 1988, a supplemental assessment rate
of 1.5% was added to the basic assessment rate to obtain the
effective assessment rate.

Section 3350(9), Title 19, Delaware Code as amended in July 2003
provides that an employer’s basic rate shall be increased by a
“supplemental assessment” of .2%.

B.       Rehire Credit

Section 3350, Title 19, Delaware Code, as amended July 1, 1994
provides that an employer may apply for rehire credit against
benefit wages charged to his experience rated account if:

 •        the employer reemployed a claimant during the claimant's
          benefit year and because of such reemployment, prevented the
          payment of more than 75% of the maximum benefits to which
          said claimant was entitled to receive during the benefit

 •        base period wages (stated as benefit wages on the quarterly
          benefit wage charge notice, Form UC-12) upon which the claim
          was based were charged to the employer's experience rated
          account during the benefit year just ended,

     •    the employer applied for rehire credit within ninety (90)
          days following the end of a claimant's benefit year ending

A signed application for rehire credit must be made on Form UC-400
(Application for Rehire Credit). No rehire credit can be applied
for prior to the end of the claimant's benefit year. Applications
for rehire credit not filed within 90 days will be denied.

Application forms (UC-400) may be obtained from the Department of
Labor by writing to the Division of Unemployment Insurance, P. O.
Box 9953, Wilmington, Delaware 19809-0953. Form UC-400 should be
completed from your records.

Rehire credit may be granted for an amount of 25%, 50%, or 75% of
the original charge depending on the balance remaining in the
claimant's benefit account when his benefit year ends. The credit
will be applied in the calendar year and quarter in which the
claimant's benefit year exhausted. Credit is NOT retroactive to
the period in which the benefit wages were charged or rehire
occurred. If an application for rehire credit is denied, the
employer will be notified of the reason on Form UC-409RC (Notice of
Denial of Application for Rehire Credit).        If the credit is
allowed, the employer will be issued a Statement of Benefit Wage
Credits (Form UC-401).

C.   Transfer of Experience Rating

     If an employer transfers its trade or business, or a portion
     thereof, to another employer and, at the time of the
     transfer, there is any common ownership, management or
     control of the two employers, then the unemployment
     experience attributable to the transferred trade or business
     shall be transferred to the employer to whom such business
     is so transferred.   The rates of both employers shall be
     recalculated and made effective immediately upon the date of
     the transfer of trade or business.

     Whenever a person who is not an employer under Delaware’s
     Unemployment Insurance Law at the time the trade or business
     of an employer is acquired, the unemployment experience of
     the acquired business shall not be transferred to such
     person if the division finds that such person acquired the
     business solely or primarily for the purpose of obtaining a
     lower rate of contributions. Instead, such person shall be
     assigned the applicable new employer rate under §3348 of
     Delaware’s Unemployment Law.    In determining whether the
     business was acquired solely or primarily for the purpose of
     obtaining a lower rate of contributions, the division shall
     use objective factors which may include the cost of
     acquiring the business, whether the person continued the
     business enterprise of the acquired business, how long such
     business enterprise was continued, or whether new employees
     were hired for performance of duties unrelated to the
     business activity conducted prior to acquisition.

     Any person who knowingly violated or attempts to violate or
     any person who knowingly advises another person in a way
     that results in a violation of any provision related to
     determining the assignment of a contribution rate shall be
     subject to unemployment insurance rate increases, civil
     penalties and criminal prosecution.

D.   Joint Accounts of Employers

     As provided by Section 3352, Title 19, Delaware Code and
     Regulation 38, two or more liable employers may elect, by
     submitting a written request to the Unemployment Insurance
     Division, to group their experience rating accounts by
     forming a "joint account".      Upon its approval of the
     application, the Department will establish a joint account
     for such employers effective as of the beginning of the
     calendar quarter in which the Department receives the
     application. Also, a joint account will be established when
     the Department determines that a reorganization may
     adversely   affect  the   solvency   of  the   Unemployment
     Compensation Fund. Such a joint account will be effective

             within the calendar quarter that reorganization occurs.
             Under this arrangement, the employer accounts are treated as
             a single account in the determination of a common tax rate.
             However, each account must continue to file a separate
             quarterly report (Employer's Summary Assessment Report, see
             Section V) to which the common rate is applied.

       E.    Notification of Assessment Rate

             All employers are notified of their rate of assessment for
             each calendar year by the Unemployment Insurance Division.
             This determination becomes conclusive and binding within
             fifteen days after the mailing of the notice unless the
             employer files an application for review and redetermination
             by writing to the Division.

       F.    FUTA Tax

             Under the provisions of Chapter 23 of the Internal Revenue
             Code, a tax is levied on employers covered by FUTA, as noted
             in Section IV of this handbook, by the Federal government at
             a rate of 6.2% on the taxable wages paid to an employee in
             any calendar year. The law, however, provides a credit of
             up to 5.4% toward the Federal tax liability to employers who
             pay State U.I. taxes timely under an approved State
             unemployment insurance program. This Federal tax is used to
             pay administrative costs, both State and Federal, associated
             with unemployment compensation programs.

       G.    Training Tax

             Section 3401(a), Title 19, Delaware Code, provides for a
             fifteen one-hundredths of one percent (0.15%) per year tax
             on liable employers on wages subject to Unemployment
             Insurance taxes. The funds are used to provide industrial
             training or retraining for dislocated workers, school-to-
             work transition services, and career ladder training for
             State employees. Training tax bills are mailed to employers
             on a semi-annual basis.      Interest may accrue and be
             collectible on all unpaid training tax assessments at the
             same rate applied to delinquent unemployment insurance


       Nonprofit organizations operated exclusively for religious,
       charitable, scientific, literary or educational purposes (those
       exempt under Section 501(c)(3) of the Internal Revenue Code) and
       governmental entities may discharge their obligation under the
       Unemployment Insurance Law by reimbursing benefits paid to their

former employees on a dollar for dollar basis in lieu of tax
contributions. The State of Delaware is a reimbursable employer
for its Merit System employees.

A.   Charging of Benefits Under the Reimbursement Option

     Employers electing the benefit reimbursement option are
     advised of all charges made against their accounts, thereby
     giving them the opportunity to review these charges and
     object if they believe that benefits have been improperly
     paid or charged to their accounts.

     At present, the accounts of nonprofit organizations electing
     the reimbursement option are charged for the total amount of
     regular benefits paid and the total of the first compensated
     week and one-half of the extended benefits paid to their
     former employees in subsequent weeks (see Section IX. Claims
     and Benefits for a definition of extended benefits). As of
     January 1, 1979, governmental entities were charged for the
     full amount of any extended benefit payments.

     Following the end of each month, each nonprofit organization
     or governmental entity that has elected the benefit
     reimbursement option is billed for the amount of benefit
     payments charged to the employer's account during that

     Payment is due within 30 days after the mailing date of the
     monthly bill.   If the amount due is not paid by the due
     date, interest will be assessed on the unpaid balance at a
     rate of 1.5% per month or any fraction thereof.

B.   Benefit Charge Determination

     If there is more than one liable reimbursable employer in
     the base period, the percent of benefits paid charged to
     each reimbursable employer will be the same as the percent
     of total base period wages each reimbursable employer paid
     to the claimant. The base period is the first four of the
     last five completed calendar quarters preceding the date
     when the claim is filed.

     The following is an example of a benefit charge
     determination when there is more than one liable reimbursing
     employer in the base period:

     A claimant has total base period wages of $10,000. During
     the first half of the base period he worked for the State
     earning $5,000.    For the next quarter he worked for a
     nonprofit employer who chose the reimbursement method,
     earning $2,500.   For the final quarter he worked for an

     employer in the private sector who paid the assessment tax,
     earning $2,500.

     The State's share is 50% of the Maximum Benefit Amount.

     The nonprofit employer's share is 25% of the Maximum Benefit

     The private employer's share is paid from the U.I. trust
     fund to which the employer has been making quarterly tax

C.   Group Accounts

     Two or more employers that have become liable for payments
     in lieu of assessments may file a joint application to
     establish a group account for the purpose of sharing the
     costs of benefits paid to former employees. Each member of
     the group is liable for reimbursement payments in the same
     proportion as the benefit payments made to his former
     employees are to the total amount of benefits paid by all
     employers in the group. Such account must remain in effect
     for at least two years.

D.   Termination of the Reimbursement Option

     The election by a nonprofit organization to become liable
     for reimbursement in lieu of tax assessments can be
     terminated by filing a written notice with the Department
     not later than 30 days prior to the beginning of the taxable
     year for which such termination shall be effective.
     However, the entity continues to be liable for the
     reimbursement of benefits that are based on weeks of
     employment occurring prior to the termination date.

E.   Contribution Method for Government Entities or

     Any governmental entity or instrumentality may, as an
     alternative   to   direct  reimbursement,   elect   to   pay
     assessments by filing written notice of its election with
     the Department, provided that such election remains
     effective for at least two calendar years, after which time
     it may be terminated by filing written notice with the
     Department not later than February 1 of any year with
     respect to which termination is to become effective. The
     assessment rate shall be determined on or before September 1
     of each year by reviewing the benefit cost experience of all
     governmental entities which have made such election and on
     the basis of that experience establishing the rate for the
     next following calendar year.


      A.    The Basic Programs

            1.    Regular State Unemployment Insurance (U.I.

                  This program provides benefit payments to eligible Delaware
                  workers who are unemployed through no fault of their own and
                  file a claim in this State.

            2.    Unemployment Insurance for Non-Resident Workers
                  (Interstate System)

                  This program makes it possible for a worker who lives in one
                  state but works in another to collect unemployment insurance
                  benefits, should he/she become unemployed.

            3.    Unemployment Insurance for Federal Workers (UCFE)

                  Federal workers are covered by a special program which
                  provides benefits based on wages paid as a civilian employee
                  of the Federal Government. To be eligible, UCFE claimants
                  must meet the same requirements as regular U.I. claimants.

            4.    Unemployment Insurance for Ex-Servicepersons (UCX)

                  UCX is paid on the basis of remuneration for military
                  service. The State operates this program under an agreement
                  with the Federal government.

            5.    Extended Unemployment Insurance Benefits (EB)

                  The payment of benefits may be extended past the maximum of
                  26 weeks if the State rate of insured unemployment exceeds
                  specified levels.

      B.    Filing for Benefits

            1.    How does an Individual File for Unemployment

                  As soon as an individual becomes unemployed, he/she should
                  report to the nearest Unemployment Insurance Local Office in
                  the state in which he/she resides.        The locations of
                  Delaware's local offices are listed in the back of this

            2.    Who is Entitled to Receive Unemployment Insurance?

                  The receipt of U.I. benefits is an earned right, and each
                  claim for benefits is contingent upon the individual meeting

     the requirements of the Unemployment Compensation Law (Title
     19, Delaware Code).

3.   What are the Eligibility Requirements?

     To be eligible for U.I. benefits, four basic eligibility
     requirements must be met:

     a. A person must be unemployed through no fault of his own.

     b. An individual must be able to work, available for work,
        and actively seeking work.

     c. An individual may be required to register for work with
        the Division of Employment and Training.

     d. A person must have been paid at least 36 times his weekly
        benefit amount by a liable employer in the base period.

4.   For What Reasons May a Person be Disqualified from

     a. Quitting a job voluntarily without good cause connected
        with the work.

     b. Being discharged from work for just cause.

     c. Refusing an offer of suitable work for which the claimant
        is reasonably fitted.

     d. Refusing a referral to a suitable job opportunity offered
        by the Employment Service, except in cases where:

           (1)   The referral would prevent the claimant from
                 completing a vocational training course approved
                 by the Department of Labor.

           (2)   The claimant would be required to join a company
                 union or refrain from joining a bona fide labor
                 organization or withdraw from a union.

           (3)   The position is vacant because of a strike or
                 other labor dispute.

           (4)   The work is at an unreasonable distance from
                 the claimant's residence.

           (5)   The pay, hours, or other conditions of work are
                 substantially   less   favorable    than   those
                 prevailing for similar work in the locality.

     e. If unemployment is due to a stoppage of work because of a
        labor dispute, except for a "lockout".

           f. If the claimant is receiving or seeking unemployment
              benefits from another state or from the federal

           g. If a false statement has been deliberately made to obtain
              unlawful benefits, an individual may be denied benefits
              for one year from the date on which the statement was

           h. If unemployment is due to commitment upon conviction and
              sentencing to any penal institution.

           i. Benefits are not paid to aliens, unless they were
              lawfully admitted for permanent residence at the time the
              services were performed.

     5.    Special Exclusions

           The following are not entitled to benefits:

           a. Persons engaged in an instructional, research or
              principal administrative capacity in an educational
              institution for the period between two successive
              academic years or during a similar period between two
              regular terms whether or not successive or during a
              period of sabbatical leave, if the individual has a
              contract or a reasonable assurance to perform services
              for both academic years or both terms.

           b. Non-professional employees of educational institutions
              between academic terms.     If not rehired after such
              period, and if otherwise eligible, these individuals
              would be entitled to retroactive unemployment insurance
              benefits if they met all other reporting requirements.

           c. Persons engaged in seasonal employment in the first
              processing of agricultural and/or seafood products unless
              the period of unemployment occurs during a month during
              which the person normally is engaged in "seasonal

C.   Some Definitions of Frequently Used Terms

     Base Period - The first four of the last five completed calendar
     quarters prior to the claim.

     Benefit Year - The 52 week period beginning with the week in which
     the claimant files a valid claim.

     Partial Benefits - A claimant whose hours of work are reduced may
     be eligible to receive partial benefits.

           Weekly Benefit Amount (WBA) - When the balance in the Unemployment
           Insurance Trust Fund is equal to or greater than $90.0 million, an
           individual's weekly benefit amount will be determined by taking
           1/46 of his/her total covered wages paid during the two quarters of
           the individual's base period in which such wages were highest.
           When the Trust Fund balance is less than $90.0 million, an
           individual's weekly benefit amount will be 1/52 of his/her total
           wages paid during the two quarters of the individual's base period
           in which such wages were highest.

           The minimum weekly benefit amount is $20.00 and the maximum weekly
           benefit amount is $330.00.

           Maximum Benefit Amount (MBA) - Eligible individuals during any
           benefit year are entitled to regular benefits equal to 26 times the
           computed WBA or 50% of base period wages, whichever is less.

           Reduction of Benefits by Private Pension Plan - An otherwise
           eligible individual receiving a retirement pension or annuity from
           a base period employer will be paid a WBA less a dollar for dollar
           deduction for that employer-financed portion of such pension,
           annuity or periodic payment which is based on that individual's
           previous work.

           Back Pay Awards - A claimant is not entitled both to pay for a
           given period of employment and to unemployment insurance benefits
           for the same period of time. Cases arise where disagreement exists
           between the employer and the claimant as to entitlement to pay for
           certain periods of time. While such a dispute is pending, the
           claimant may obtain unemployment benefits. If retroactive wage
           payments are subsequently received covering the period for which
           the claim for benefits was allowed, then to the extent that
           payments were received, the claimant is retroactively determined
           not to have been entitled to these benefits and such benefits are
           subject to recovery. An employer affected by this provision should
           promptly notify the U.I. Division so that a redetermination can be
           made and if appropriate the charges previously issued against the
           employer may be cancelled.

           Any employer who makes a deduction from a back wage award to a
           claimant because of that claimant's receipt of unemployment
           benefits, for which said claimant has become ineligible by reason
           of the receipt of such award, shall be liable to reimburse the
           Unemployment Insurance Trust Fund an amount equal to the amount of
           such deduction.


     If an employer or claimant does not agree with a Claims Deputy's
     determination, a hearing before an Appeal Referee may be requested. The
     appeal must be filed within 7 calendar days after delivery of the
     determination or, if the determination was mailed, within 10 calendar

days after the mailing date of the determination, after which time the
Claim Deputy's decision is final.

An Appeals Referee then conducts a hearing under oath, reviews the case
and makes a decision in accordance with the provisions of the Delaware
Unemployment Compensation law. Benefits may be paid in accordance with
the Deputy's ruling, even during the appeal process, until such time as
the decision is overturned or confirmed.

The decision of the Appeals Referee may be appealed to the U.I. Appeal
Board, an independent, quasi-judicial five member board appointed by the
Governor, if either the employer or claimant contests the former
decision. Appeals to the Board will be heard upon the evidence in the
record which is based upon the record before the Appeals Referee.
However, the Board may direct the taking of testimony in addition to that
contained in the record of the Referee's hearing and, at its discretion,
allow the employer and/or claimant to offer additional evidence.

Decisions of the U.I. Appeal Board become final unless appealed to
Superior Court within 20 days after a decision has been rendered.

In the case of an appeal of a decision of the Appeal Board to the
Delaware Courts, judicial review thereof shall only be permitted after
the appellant has exhausted all administrative remedies. Only then may
the decision be taken to the Superior Court and further appealed to the
State Supreme Court. Appeals from the U.I. Appeal Board's decision to
the Superior Court are limited to consideration of the record, which
includes testimony before the Board and the decisions of the Referee and
the Board.

Employers may also appeal annual assessment rate notices or quarterly
benefit wage charge notices by writing to the Unemployment Insurance
Division to request a review or redetermination. Appeals from assessment
rate notices go first to the Division, then to Superior Court. Appeals
from benefit wage charge notices go first to an appeals referee then to
Superior Court.


                                                               APPENDIX I



     FORM UC-1


                 To furnish information with which the Division may establish
                 an employer's liability.     Information must be provided
                 concerning the nature of business, type of organization, any
                 change in status, employment record for the last five years
                 (if any) and details of acquisition of another business so
                 that the Division may assign an account number and NAIC
                 (North American Industry Code)

           WHEN USED

                 This form is sent to an employer on request, or when the
                 Unemployment Insurance Division is informed that a firm is
                 doing business in Delaware.

           WHEN DUE

                 The employer must return completed form within ten days,
                 whether or not employer is "covered" under the law.


           1.    Because of the importance of this form in establishing an
                 employer's account, it should be typed or printed neatly.
                 Additional pages should be attached if additional space is

           2.    ITEM #3 - Report forms will be sent to an employer's
                 accounting firm only if the employer has submitted a power
                 of attorney document. If an accounting firm is listed in
                 this box and there is no power of attorney on file, the
                 reports will be sent to the address listed in Item #2.

           3.    ITEM #6 - The individual who fills out this form must also
                 include his/her own Social Security Number, address, and
                 percentage of ownership, if he/she is a partner, sole
                 proprietor or officer of the corporation.

           4.    ITEM #10 - Employers must include payroll information (if
                 any) for the current year in addition to the four preceding

           5.    ITEM #12(d) - Because this information is used to assign a
                 Standard Classification which is used to determine the tax
                 rate for new businesses, it is important that the percentage
                 of each principle type of activity be estimated as
                 accurately as possible. If this cannot be done, the major
                 activity must be specified in reasonable detail.

           6.    ITEM #17 - Only non-profit employers exempt from income tax
                 by the I.R.S. need fill out this block.



            UC-8 - This quarterly report is used to calculate and report
            the unemployment insurance tax due for the quarter.

            UC-8A - This quarterly report is a detailed listing of
            employee names, social security numbers and wages paid to
            each employee during the quarter.

            UC-8C - This form is to be used only when it is necessary to
            notify the Division of changes in employer status or to
            correct information pre-printed on Forms UC-8/8A.

            Payment Coupon - This form must be completed and returned
            with the employer's payment and Forms UC-8/8A.


            March, June, September, and December of each year.

      WHEN DUE

            This form must be completed and filed (postmarked) on or
            before the last day of the month following the appropriate
            calendar quarter, i.e., January 31, April 30, July 31, and
            October 31. A report must be submitted even if no wages
            were paid during the calendar quarter.

            Payment for any tax liability must be included.

            All reports submitted for processing must include a six
            digit account number (XXXXX-X). Reports submitted without a
            complete account number will not be processed and will be
            returned to the employer.


            A $17.25 fine is imposed if this report is submitted more
            than five days after the due date.
            NOTE: Instructions for completing the UC-8 and UC-8A are
                   provided with the forms.


            Interest accrues at the rate of 1.5% per month or fraction
            thereof on assessments which are not paid on or before the
            due date.

***Pursuant to HB 144 signed into law on June 18, 2007, the taxable wage base
was increased from $8,500 to $10,500 effective January 1, 2008. The
Employer’s Quarterly Report Forms that are usually located in this section of
the Employer Handbook are being updated to reflect this change and are not
yet available. This “online” version of the Employer Handbook will be updated
to include examples of the updated Employer’s Quarterly Report–Forms Set as
soon as they are available.

     1. Report current period wages only.   Prior period corrections must be
        made by adjustment application.

     2. To change preprinted information on the tax report such as company
        name and address, please use change report (UC-8C) included in the
        quarterly report forms packet.

     3. The use of nonstandard forms may cause processing delays.

     4. Failure to sign and date a form may cause processing delays.

     5. Our goal is to support employers’ effort to comply with reporting
        requirements. If you have a question, please call (302) 761-8482.


     FORM UI-QPR-2


           This quarterly report is a detailed listing of employee names,
           social security numbers and gross wages paid to each employee
           during the quarter.


           March, June, September and December of each year.


           This form must be completed and filed (postmarked) on or before the
           last day of the month following the appropriate calendar quarter,
           i.e. January 31, April 30, July 31 and October 31.


           A fine is imposed if this report is submitted more than five days
           after the due date.



           The Blue Collar Jobs Act of 1984 created a bi-annual tax for the
           purpose of providing training programs.


           Employers will be billed by June 30 and December 31 of each


           Payment is due by July 31 and January 31 of each year.


           Interest accrues at the rate of 1.5% per month or fraction
           thereof on taxes not paid on or before the due date.


     FORMS UC-119 AND UC-119C


                 To request reason for separation.

           HOW USED

                 When a worker files a claim, the UC-119 is prepared and sent
                 to each base period employer.    Employers are required to
                 indicate the reason for separation (lack of work, or other),
                 the last day the former employee worked, and any information
                 about pensions. The UC-119 is used to determine whether an
                 employer's account will be charged with benefit wages on the
                 basis of the claim. (The original form must be returned. No
                 copies or facsimiles will be accepted.)

                 The UC-119C is sent to the last employer and is used to
                 determine nonmonetary eligibility.

           DUE DATE

                 Seven 7)business days after the mailing date shown on the
                 form. Photocopies and facsimiles will not be accepted in
                 lieu of the original Form UC-119. If not received in seven
                 (7) days, the Agency will decide the claim on the basis of
                 available information, and the employer shall be barred from
                 claiming subsequently that relief from benefit wage charges
                 should be granted or that the worker should have been
                 disqualified from the receipt of benefits.


     1.    The employer should be as specific as possible, attaching
           additional pages if necessary, in explaining the reason why the
           worker is no longer employed.     For example, saying that the
           employee "took a better job" is not specific enough.

     2.    It is important that base period employers, even though they may
           not be the last employer, state specifically the reason for
           separation, as they may not be charged if it can be shown that the
           employee left said employment without "good cause related to the
           work" or was terminated for "just cause" connected with the work.


           FORM UC-12


                 To notify assessed employers of any benefit wages of former
                 employees charged to their accounts and/or relief of benefit
                 wages charged in previous calendar quarters.

                 WHEN SENT

                 Quarterly notices are sent to employers.

                 APPEAL PERIOD

                 Request for reconsideration of benefit wage charges applied
                 must be submitted within 15 days from the date Form UC-12
                 was issued.


          FORM UC-401


                        To notify assessed employers of any rehire credits
                        applied to their accounts.

                WHEN SENT

                        Rehire credit applications are processed upon receipt.
                        The employer will be notified upon determination.

                APPEAL PERIOD

                        Request for reconsideration of rehire credits applied
                        must be submitted within 15 days from the date Form
                        UC-401 was issued.


           FORM UC-400


                         To request credit be applied to employer account
                         pursuant to the rehire of an employee(s).

                 WHEN SENT

                         Application must be submitted by employer to the
                         Department   of  Labor,   Division   of Unemployment
                         Insurance within the 90 day period following a
                         claimant's benefit year ending date.


If it is determined the claimant has insufficient wages in the first four of
the last five completed calendar quarters base period (illustrated above) to
become monetarily eligible for unemployment insurance compensation, Section
3302(2), Title 19, Delaware Code provides for the use of an alternative base
period. The alternative base period allows for the use of wages from the four
most recent completed calendar quarters immediately preceding the effective
date of the unemployment insurance claim. Please contact Employer Contribution

Operations   if   you   have   questions    regarding   alternative   base   period.


           FORM UC-401


                         To notify assessed employers of any rehire credits
                         applied to their accounts.

                 WHEN SENT

                         Rehire credit applications are processed upon receipt.
                         The employer will be notified upon determination.

                 APPEAL PERIOD

                         Request for reconsideration of rehire credits applied
                         must be submitted within 15 days from the date Form
                         UC-401 was issued.

J.   Statement of Benefit Wage Credits for Rehire Denial

           Form UC-409RC


                 To notify assessed employers of rehire credit denials.

                 WHEN SENT

                 Daily notices are sent to employers who are denied
                 rehire credits.

                 APPEAL PERIOD

                 Request for reconsideration of denial must be submitted 15
                 days from the date form UC-409RC was issued.


           FORM UC-301


                         To inform the employer and claimant that an appeal has
                         been filed against a decision made by a claims deputy
                         concerning a claim for unemployment benefits and to
                         provide notice of the date and time of the appeals
                         hearing before an Appeals Referee.


                         Instructions are provided on the back of the form as
                         to how to prepare for the hearing. The employer and
                         claimant should bring evidence which bears on the case
                         such as wage and hour records, company policies or
                         written warnings issued to the employee. It may be
                         helpful to write down notes to take to the hearing to
                         prevent omitting relevant facts.        Any and all
                         witnesses bearing relevant testimony should appear at
                         the hearing.

                         Attorneys may be brought to the hearing but are by no
                         means necessary for a fair and judicious process.

                                                               APPENDIX III

                              DEPARTMENT OF LABOR


You may direct specific questions regarding benefit eligibility to these offices:

Wilmington Local Office                   Mailing Address

Division of Unemployment Insurance        P. O. Box 9951
4425 North Market Street                  Wilmington, DE    19809
Wilmington, DE     19802
(302) 761-8446

Newark Local Office

Division of Unemployment Insurance        P. O. Box 9955
Building #225, Corporate Blvd.            Wilmington, DE    19809
Pencader Corporate Center
Route 896
Newark, DE 19714
(302) 368-6600

Dover Local Office

Division of Unemployment Insurance        P. O. Box 616
1114 S. DuPont Highway                    Dover, DE 19903-0616
Suite 103
Dover, DE   19903-0616
(302) 739-5461

Georgetown Local Office

Division of Unemployment Insurance        P. O. Box 548
600 N. DuPont Hwy.                        Georgetown, DE    19947-0548
Georgetown Professional Park
Georgetown, DE 19947
(302) 856-5611


Please direct questions concerning unemployment insurance tax matters to:

Division of Unemployment Insurance
Employer Contributions
Post Office Box 9953

Wilmington, DE   19809
(302) 761-8482