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?