Do employers actually "pay" for Unemployment benefits?

[allen03]

Just a general question about Unemployment compensation prompted by some of the threads I read.

Do employers actually pay the money that is disbursed to employes who are discharged? I thought that came from taces, as opposed to out of the employer's pocket. How do/does the mechanics of Unemployment benefits work?

 

[cbg]

In every state I know of, the employer writes a check, on a quarterly basis, to the appropriate state agency. The amount is based on their payroll. Along with the check goes a list of every employee, with their SSN, and the amount of their earnings for that quarter so that the state can see that the employer is paying the correct amount and keep track of the employee's eligibility, should a claim be made.

So yes, the employer actually pays this out of his pocket. Why does it matter?

 

[allen03]

cbg, it's not a question of it "mattering". I was simply wondering how it works.

Like I said I was under the impresison that as taxpayers we all, in a sense, pay for our own UC benefits when and if it happens. But you didn't answer the question. Yes, I know employers keep payroll data and submits that data to the State and other govt agencies), but it's not as if employers are paying UC benefits out of their pockets - the same as payroll. Providing a list of names, SSNs, and wages costs nada except for a some clerk's time once every quarter. So it makes no difference if they keep al their staff of discharge half of them. In fact, if I employ 20 people and discharge 10 of them then I will pay less in taxes.

Therefore, I don't understand why an employer would squirm or object to UC benefits for someoen they discharged. For example, if someone is discharged and then receives $300 a week in UC benefits, that $300 comes from the State, not out of my (the employer's) pocket.

 

[cbg]

Allen, you didn't read my answer. The impression you had - that we as taxpayers are paying our own UC benefits - is WRONG. The employer IS paying them. It is the EMPLOYER who is writing that check. It is not payroll deduction.

In addition, the rate they have to pay goes up for every claim.

And I did answer the question; I just didn't give you the answer you wanted to hear.

 

[cbg]

It just dawned on me where your confusion is coming from. You are thinking that because the state is the one that writes YOU the UC check, it means that the money came from taxes. It doesn't. The money that you get in your UC check does not come from tax money - it comes from the money that the employers paid to the state with that report.

 

[Beth3]

Ditto. Employers pay 100% of the cost of all UC claims made against their account, as well as into a general UC fund managed by the State for eligible claimants who do not receive benefits from a partiucular employer's fund (which occurs for a variety of reasons.)

 

[allen03]

cbg - I read your other post in entirety. You didn't answer the question that I asked,

Beth3, thanks.

 

[HomeGuru]

Oh brother.

 

[dequeendistress]

and Sista...

Do employers "actually" pay...Jeezz...Did you actually work for your previous employer?

 

[cbg]

Allen, you asked only one question. That question was, do employers actually pay the money that is disbursed to employees who are discharged? The answer is, and was, yes, they do. They pay the money to the state, who in turn, writes the check to the employer.

Now, if there's another question in there that I haven't answered, I'll be darned if I know what it is.

 

[HomeGuru]

cbg, be careful or he might tace you to death.

Just a general question about Unemployment compensation prompted by some of the threads I read.

Do employers actually pay the money that is disbursed to employes who are discharged? I thought that came from taces, as opposed to out of the employer's pocket. How do/does the mechanics of Unemployment benefits work?

 

[JETX]

cbg, here you go again!!! Don't tell me that you have forgotten that mind reading course we all took.

 

[cbg]

Oh, wait a minute. I see the second question.

How do the mechanics of unemployment benefits work?

1.) Every quarter, the employer writes a check to the state for a percentage of his payroll (this is IN ADDITION to his payroll, not deducted from it) and sends it along with a report, broken down by employee, of the wages paid in that quarter.

2.) Allen is laid off (possibly for tacing his employer).

3.) Allen files a claim with the UC division of his state.

4.) The state sends Allen's employer a form to the effect that "Allen has filed for unemployment - do you care if we give it to him?"

5.) One of three things happens:
a. Allen's employer disregards the notice, which is the same as saying, "No, we don't care, let him have benefits".
b.) Allen's employer sends the form back to the state with the response, "Yes, we agree that Allen can have UI benefits - we don't intend to make a fuss over it".
c.) Allen's employer sends back the form with the response, "We certainly do care! Allen taced his supervisor - we don't think he's entitled to benefits".

6.) If (a) or (b) above, Allen is approved for benefits. If (c) above, one of two things might happen:
a.) The state might disregard the employer and approve Allen for benefits anyway.
b.) The state might listen to the employer and deny Allen benfits.

7.) The losing party can appeal. These appeals can go over time. So let's skip to

8.) For the purpose of this discussion, we'll assume that the final decision is that Allen is eligible for benefits.

9.) Using the money that was paid in to the state by the employer, Allen receives his UC benefits. No taxpayer money is involved. Repeat, no taxpayer money is involved.

Is everyone happy now?

 

[dequeendistress]

I know I am, can't speak for allen.

 

[JETX]

I am so DAMN happy!!!