When an employer lays someone off, do they then have to pay a portion of the unemployment ins. to the Stte?

Question

When collecting Unemployment Insurance does it all come out of a general fund or does the former employer pay a portion to the State which is directly earmarked for that laid off person, and if so what percentage does the employer pay?

Answer 1

I don't know where it all comes from but I know that at least a portion comes from the former employer. I had a friend loose her job and I remember her telling me that she had to wait for the unemployment office to get approval from her previous employer before she could start getting her payments... in most cases, it's faster to get a new job even with the delay in pay check than it is to wait for unemployment.... probably les stressful, too. =)

Answer 2

Employers are rated on some kind of system based on the number of employees they have and the number they layoff over a period of time. I'm not sure of the exact numbers or formula but it comes to this:
Once a large employer lays people off they pay into the system. They keep paying a percentage over a period of time. That's why large corporations (like General Motors) have layoffs and don't worry about the cost (too much). They're already paying into the system and will be doing so for a long time.
A small business, like a ten person operation probably won't be impacted.
the bottom line is that the bigger you are and the more people you layoff, the more you pay.

Answer 3

Employers pay a rate of about 2.7% per dollar of salary piad out to employees (unless they get a discount).

When the employee leaves (regardless of the reason), the employer no longer pays anything. The worker, though, may be able to collect benefits as a result of being without employment, that's what the money is for.

The state pools the money into a single fund, none of it is set aside for individuals by name. (It's not a "general fund", it's a "special revenue fund", because the money is bound by law to be used for a single purpose).

Employers are sometimes rewarded with lower rates when they have a good record of keeping employees. They can also be penalized by the federal government for failing to pay state unemployment rates.

Answer 4

The employer pays unemployment insurance tax on the first $7,000 of wages paid to each employee at a sliding rate depending on its rate of experience in having claims filed by former employees. An employer with few claims pays less, (less than 2% of taxable wages) than one with a lot of claims (up to 5.4%). Benefits paid to former employees are charged against the reserve of payments the employer has paid. All of the tax collected goes for payment of benefits; it does not go into the state's general fund. A related federal tax pays the costs of administering the program.

Answer 5

While you are working, the employer has been paying in a percentage of your income (up to a particular limit) to the unemployment compensation fund.

The percent the employer pays can depend on the company's history of people collecting, so their future payments can increase when someone collects.

The percentage varies depending on state, type of business, and employer history.

Answer 6

I have no idea what the percentages are but, yes, employers pay for it. I moved my company from pay-to-work to actual employee and it is like a kick to the corporate sack.I pay this employee (on my expense sheet $750) He takes home $440! It is a general fund and all companies are required to pay it.
It is a government required expense. We are now in a business friendly environment. If Hillaskank takes over, I close my business. Period!
T
Tighten your belts, Hillaskank might be elected. It'll be a rough 4 years.

Answer 7

depends on the state.

In CA, the employer pays a percentage of the employees wages in Unemployment Insurance.

The rate is determined by how long they've been in business and how many people they've canned.

The amount you can claim is based on a percentage of your wages. It ain't much. Basically enough to keep you from starving to death.

Provide a state, if your not in CA.

Answer 8

Employers pay payroll tax to the state (into an general unimployment fund) while you are working. There is not a specific set-aside fund by individual. The amount of UI you draw depends on your past income (up to a statutory maximum).

Answer 9

The employer pays unemployment insurance to the state while you are working. Therefore you benefits are not dependent on whether the business goes into liquidation.

Answer 10

The employer pays unemployment insurance all along.