I know employers are required to pay into an unemployment tax. When I collect unemployment does my employer have to pay anything extra or is the tax basically a flat rate? So essentially I just wonder if it costs my employer anything extra when work was slow and they laid me off.
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The rate your employer pays for unemployment insurance does have some relation to the number of claims his former employees make. His rates are not likely to be effected solely by your claim. If he has had claims in the past it is probable that he is already at the highest rate anyway. Besides that is not your problem. This is a benefit that you deserve.
I see a lot of wrong information here. The answer to the first posed question is yes, Unemployment is like any other kind of insurance. If there is a claim against you as an employer, there is a cost associated with that claim. Much like if you get into a car accident there is a cost associated with that claim. Insurance companies and in this case the stated and federal government charge business owners a base rate and then add the cost for claims associated with the business owners experience in claims collected against their company. Each State has there State Rate, business owners know this Rate a SUTA. There is also the Federal insurance Charge Called FUTA. The employer is charge on the FUTA a base of .006 and there are state surcharges add if the State you live in had to burrow money from the Federal government because the didnt manage the SUTA Funds and ran out of money. These taxes are charge to the business owner on the Fed side until the owner has paid $7000 in wages to the employee, after that this amount is no longer charged or taxed how ever you want to look at it. Each stat sets their own cut offs for the SUTA. So long story short here is yes when you make a unemployment claim your boss has an increase in SUTA tax and the more he can keep those cost down the more people he may be able to hire. So the next time you think about staying home and collecting the unemployment check until it runs out and then start looking for a job, keep in mind that the new guy you want to go to work for may not have the profits to add new people on because his old employees have been collecting a check because they where told its a benefit so take your time and collect a check.
All employers pay state and federal unemployment taxes. The federal rate is fixed but the state rate varies in most states. One of the factors that determines an employer's tax rate is their unemployment experience rating. The more employees that an employer is forced to lay off (or discharges without good cause) the higher their unemployment taxes will be.
In reality today many employers are now paying the maximum state unemployment tax rates due to the flattened economy. When that happens any more layoffs won't increase their rate but may increase the amount of time that they have to pay the higher rate.
Don't concern yourself with any increase in your former employer's unemployment taxes based upon your claim. His tax increase will be a LOT less than the benefits that you'd lose out on if you did not file a claim.
You have a legal entitlement to unemployment compensation while you look for work when you lose your job through no fault of your own. It would be foolhardy to give that up over a misplaced sense of loyalty to an employer who hung you out to dry.
There are a lot of variables in the total cost to your employer, many of which are not immediately apparent. There are the payroll taxes that they pay and the cost of benefits as well and those are pretty obvious. Less obvious but very real costs include the cost of the office space that you occupy, support staff costs, and equipment such as computers, etc. Having worked in large companies before with hiring and budget authority, we typically cost out a new hire at 200% of the salary that they are paid. If you are paid $50k per year, your final cost to your employer is pretty close to $100k per year. If we can justify cost reductions or income increases of more than that amount then we'll probably get the green light on the hire.
Yes and No. Taxes your employer pays are credited to a reserve account in his name and benefits to former employees are charged against it. If claims exceed credit in the account the employer's tax rate is raised. On the other hand, if there are few claims, the tax rate is reduced.
they pay a certain percent to unemployment but not necessarily extra taxes if you are scared about your employer paying extra taxes don't cause if you are laid off you need that money and that's what its for
Unemployment premiums are risk based. If an employer lays just you off, they may not see a premium increase, however, if they lay off 5 employees, they may see an increase in their unemployment premium. The rates vary by state.
but what about the unemployment tax I pay from my paycheck
NOPE.
But if too many claims, their rate of unemployment insurance rises.