At the end of the day, who pays for unemployment?

Question

I had a pretty high paying job (for my age) in the restuarant industry and during that time I took a loan out, and a motorcycle payment in addition to my regular bills (car, phone, insurance, rent etc). Since then, the restaurant went out of business leaving me with tons of bills. I claimed unemployment, and have been trying really hard to find another job that can cover all my bills.

So basically, my father (who owns his own business) found out and absolutely cannot stand that Im on umemployment. He really really hates it and is almost at the point where he wants to disown me. My question is, why does he care so much? Does he pay (out of his business) for me to collect? I was under the impression that the employer pays, and the fact that I have been working 6 years in the past. Thanks in advance to anyone that can shed some light.

Answer 1

Unemployment is paid for by the taxes paid from employers. If dear old dad owns a business, he pays unemployment taxes. His rates are set first by the industry he's in (first three or so years) then by his own business experience. The tax is adjusted yearly. Businesses that go under usually have troubles paying their taxes so businesses that survive do in a way subsidize them.

Some older people have bad memories of the old days when local towns had a 'dole' for people out of work (anyone remember government cheese). I remember people yelling "get off the town!" if you lost a job. Nowadays, everyone sits around and tells their best lay-off stories.

If he's that sore about it, tell him to give you a job.

Answer 2

I agree with Don.

Many businesses also pay Unemployment Insurance in case they have to lay off a bunch of workers. Then their insurance would cover the umemployment wages while the laid off employees were claiming.

Your dad should just be happy that you're doing what you can to survive. At least you're trying to pay your own bills and find a decent job. You could be mooching off of him or other people. It's too bad that he's being such a grump about this...bc if you weren't filing for unemployment someone else would be. There's nothing he can do to stop it.

Answer 3

Being a father myself I can understand why he became upset with your situation. No parent wants their children to be drains on society. I'm not saying that your dads response was the correct one but I am saying that I think I understand. The other part of your question was who pays for the unemployment, well it is not only your former employer but me, your neighbor, your dad, everyone chips in a little. To me unemployment is there for someone who finds themselves without work through no fault of their own like a restuarant going out of business. I feel that if a person goes on unemployment they should use those funds to pay bills of course but also to retrain for another job or some other job finding endeavor. I have seen many different people misuse unemployment money for selfish reasons. You know like a little vacation or something like that. You have a right to apply for money of that nature but don't abuse the privilage or you'll be no different than all the other dregs on society.

Answer 4

You were right to file. Your previous employer paid in every month to the unemployment fund. The reason small businesses hate it when someone files unemployment is that it can raise the rates that they have to pay into the system. But since your previous employer is out of business it will not effect their rates.

Answer 5

Yes, in part his payroll taxes go to pay unemployement benefits. Yes, the prior employer also paid into the "system". The fact of the matter is, your one employer HASN'T paid 100% of what you're collecting - probably less than 3%. Just like ALL insurances, most people DON'T file claims, and are subsidizing the ones who do.

He probably hates you being unemployed more than he hates you collecting.

Answer 6

ALL employers contribute to an unemployment compensation fund, regardless of whether or not they ever have anyone collect against same.

Those who have more collections against them are assessed a surcharge to help cover the additional costs.

So, YES, your father's business is somehow subsidizing your unemployment compensation payments.

That being said, you are entitled to unemployment compensation under law, since your employer went out of business and left you jobless. Dad ought to shut his yap about it.

Answer 7

don't worry about what your dad thinks unless he's willing to pay your bills.. You've put into that the 6 years you worked.. you have ever right to collect what you've put into.
he just wants what every parent wants... for you to get a good paying job but it's not your fault the company went out of business and your doing all you can... Good Luck

Answer 8

Employers pay all unemployment taxes-employees pay none.