Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and beginning April 20th, 2021 (Eastern Time) the Yahoo Answers website will be in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.
Trending News
Do employers pay for unemployment?
One of my friends wants to file for unemployment but doesn't want to do it because she feels like her employer who is family will have to pay for it is this true?
7 Answers
- ?Lv 71 year ago
If this is unemployment pay that comes from government social security, then it is nothing to do with the employer. The government pays it out of taxes.
If the employer pays for unemployment insurance (which sounds unlikely), then again it doesn't make any difference to them. They're paying anyway for the insurance policy, and the insurance company pays your friend.
Either way, the employer doesn't pay directly for what your friend could get. They're paying anyway through tax or insurance so she CAN get something, so she should claim.
- NosehairLv 71 year ago
If she is granted unemployment benefits then yes, her previous employer will have to contribute part of those benefits.
- random_manLv 71 year ago
Indirectly, yes.
Employers pay for it like an insurance policy. They pay an assessment, and that assessment is based on their experience rating (how many claims they have).
In addition, state and federal governments often supplement the fund during economic downturns.
- How do you think about the answers? You can sign in to vote the answer.
- ?Lv 61 year ago
Yes employer's fund the unemployment system. However, if the employer never has a claim, they never see the money back. The money is paid in regularly on behalf of employees.
The worst that can happen to her family is the amount that needs to be paid in will go up, but only for a bit. As long as they operate the business, they will have to pay into the UI system.
Since this is family - maybe she should talk to her employer (uncle?) and they work out what is best for both. MAYBE family would rather slide her some cash to get by rather than see an increase in UI rate after a claim.
However, if she is just one of several employees, it is not going to make a difference if she claims as I am sure all the rest are claiming too. She would have to be the only one claiming and be the sole cause to trigger a rate increase with the UI system.
- Anonymous1 year ago
Yes
Employer responsibility for unemployment benefits
Pay unemployment taxes for each employee you have. Federal Unemployment Tax Act (FUTA) tax is an employer-only tax. It is 6% on the first $7,000 each employee earns in a year, meaning you will pay a maximum of $420 per employee per year.
Each state has its own finance method and its own calculation to determine the tax rate an employer pays. Know that the tax is based on the employer’s taxable payroll, the amount the employer has paid into the UI system, and unemployment claims against the employer’s account (called “benefit charges”).
This is called an experience rating, and it can go up or down over time depending on the employer’s payroll and history with unemployment claims.