Under the Federal Unemployment Tax Act (FUTA) and state laws, employers are obligated to payto provide unemployment compensation to employees who lose their jobs.
FUTA sets the federal tax rate, while the state tax rate varies by state. By understanding how the system works, you may be able to cut your state tax rate through efficient claims control.
The joint federal/state program on unemployment insurance (UI) originated in the Social Security Act of 1935. The system is financed almost exclusively by aon employers. No taxes are withheld from employees’ paychecks.
Workers are eligible to receive unemployment benefits if they have become unemployed through no fault of their own and meet any other requirements of state law. While drawing unemployment, workers must make themselves available for work and must actively seek a job. In most states, 26 weeks is the maximum payment period for an unemp...(register to read more)
- How to Fire an Employee the Legal Way: 6 Termination Guidelines
- Small Business Tax Deduction Strategies
- Early perks, paid volunteer time among benefits for new hires
- Increased worker-Eligibility verification began July 1
- Cross-training helps trades understand one another
- Showing restraint: Ensuring worker safety with workplace protective orders