Who Pays For Unemployment Insurance ?
Unemployment benefit is given to people who have been laid off by their employer for no fault of theirs. In the recent years, due to a bad economy and the terrible recession, several millions of people have been laid off. Many have filed for unemployment benefits. However, many people do not understand completely how the unemployment benefit works for them. |
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Many people think that this is a government benefit. However, it is not. Unemployment benefit is actually collected from the employers to fund the unemployed due to job cuts. This is a federal requirement. It has been there since 1924. Every employer pays an amount based on every employee’s salary as an unemployment benefit. This is a part of the Social Security and Welfare Act. However, since millions of people are filing for it now, even the Federal and the State government are pooling in for it.
Unemployment benefit is now a popular term, and more and more people, who thought they would never need it, are filing for it actually. The increased popularity is also leading to increased awareness about labor laws and unemployment rules.
The unemployment office pays out weekly checks to people until a period of 26 weeks. The weekly amount is calculated based on the highest quarterly pay you would have received in the previous year. Four percent of that income is paid as a weekly payment. However, the basic requirements for getting this weekly pay is the person should continue looking for jobs, should be physically fit to work, and also should have been fired or terminated.
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Who Pays For Unemployment Insurance ?
