Who pays for unemployment benefits?

Question

My husband is working for a restaurant that is going out of business. I told him he should apply for unemployment benefits while looking for a new job. His boss told him that if he applies for benefits, they will have to pay it out of pocket (The state will pay my husband, and the state will send a bill to the previous employer). I was under the impression that the employer pays some type of unemployment insurance premium to the state for such purposes.

Anyhow, if they will have to pay it out of pocket, we'd rather not apply at all, since the owners are bankrupt after closing the restaurant down. But if it's just a claim on their insurance, it seems like it would make sense to apply for benefits until he can line up new work.

So, who pays for unemployment benefits?

Answer 1

You are correct in how it works. However like any insurance if it's used the rates can go up but only for your future premiums you certainly do not get a bill instantly or retroactive. In any case collect the unemployment you are entitled to it and the cost in future premiums to his employer is minimal. A more likely scenario is that the owners didn't pay it along whit other expenses that are a normal cost of doing business.

Answer 2

Well actually unemployment is usually a invested with holding from your paycheck, if the employer didn't do this or did it and misspent or missinvested the money they are responcible for it in some states. Other state the burden is picked up by the state but if the employer is saying that they'll have to pay it out of their pockets your probably not in one of them.

Answer 3

Business owners, or people who are self employed - they pay into an "insurance" program.

Do not listen to your husband's boss, he doesn't know what he is talking too. There is, however, some truth in the fact that the basis for unemployment payments is basedon income earned a couple of quarters back.

Answer 4

The State pays unemployment reward. In maximum states employers pay unemployment taxes that fund the device. In those states, employers are no longer allowed to bypass that directly to their workers. In some states, workers are taxed to pay for area of the unemployment device. Employers additionally pay unemployment taxes in those states and are not allowed to bypass the enterprise proportion directly to workers.

Answer 5

if i worked for a company from march of 2014 to march 2015 then quit and went to work in sept of 2015 and was laid off in nov 20015 who pays my unemployment benefits

Answer 6

The business owner pays to an insurance fund.

Answer 7

Me and every other tax payer!

Answer 8

your tax money