| Some Facts Regarding Unemployment Insurance |
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| Written by Tom Addison |
| Wednesday, 13 April 2011 16:37 |
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Unemployment insurance is a topic in news stories and many personal conversations during recessions. This article will give a few facts regarding funding and who is eligible.
Unemployment insurance is a topic in news stories and many personal conversations during recessions. This article will give a few facts regarding funding and who is eligible. The government recognizes that when an employee loses their job due to their employer losing business, that person needs some financial assistance while they seek work elsewhere. This is where unemployment insurance comes in. A person receives a small portion of their previous salary for a period of time, typically 26 weeks. The amount and length of time can vary depending on the state. Once this initial period ends, the recipient may be eligible for extended benefits. Each state's department of labor will have their own guidelines regarding the collection process, which usually includes regularly checking in and advising the employment status that week. Contrary to what some may believe, these benefits are funded by employer taxes, not by employees. There are three states that do require some employee funding, but the rest do not. Unemployment insurance rates are paid to both the federal and state governments. The federal tax is currently 6.2% of taxable wages. The wage base used in this calculation is the first $7000 for each employee. The employer can receive up to 5.4% back if they stay current with their state taxes. State unemployment insurance rates can vary from state to state. As far as who is required to pay these taxes, each state will have their own guidelines. As a rule, any employer who paid out at least $1500 in wages in a quarter, or had at least one employee for one or more days a week for at least 20 weeks, are required to pay. There are different standards for domestic employers (such as those employing private nurses or babysitters) and for agricultural employers. Domestic employers usually only have to pay if they paid more than $1000 in a quarter. Agricultural employers have similar guidelines as regular employers, but instead of $1500 in a quarter, their minimum is $20,000. Instead of one employee one or more days a week, the minimum is ten. Collecting unemployment insurance can be confusing, especially for those that have never had to go through the process. The state department of labor can provide assistance with how to collect, as well as with the job search process. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Discover how the Unemployment Insurance Fund claiming process works and who's eligible for benefits now in our complete review of everything you need to know about the unemployment insurance rates hike on http://www.unemploymentinsurancetips.com/ |