Re: Unemployment - how does it work and who pays?
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Originally posted by apetaster
Given the challenging economic times, I'm hearing more and more of folks who have started collecting unemployment on my company, and that got me wondering - how does the system work (who funds it directly/indirectly, what tax monies go towards it, and if you work for a corporation and get severance pay, do you have to sign away the right to claiming unemployment?)
Thanks
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I don't know how it works in your state but I pay a percentage on the wages I pay out to the state unemployment fund. The percentage varies based on the employer's past history. Past that point I can't help much - I've never collected unemployment and so far have never had to pay any out. I have had a couple of people file on me but it has been denied. I'm not sure of the exact rules but if you fire an employee for dishonesty or something along that line you do not have to pay.
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