What about Child and Elder Care? Wellness Programs?
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Chapter 11: Employee Benefits: 11.2b Unemployment Insurance Book Title: Managing Human Resources Printed By: Cedric Turner ([email protected]) © 2016 Cengage Learning, Cengage Learning
11.2b Unemployment Insurance
Unemployment insurance is part of a national program administered by the U.S. Department of Labor under the Social Security Act and coordinated with the states. It protects workers who lose their jobs through no fault of their own. Employers entirely foot the bill for this benefit via a payroll tax, which can vary widely by the state. The rates firms pay also depend upon their layoff records, or what is referred to as their experience ratings. Generally speaking, a firm with a record of laying off large numbers of employees will have to pay a higher rate than those that do not. This means that companies most likely to lay people off will have to pay a larger share of unemployment taxes that end up going to their former workers. In addition, these tax rates will vary from one state to the next. As you can see, unemployment taxes are something HR managers must consider when they make decisions about where to locate their operations and hire employees as well as lay them off.
Employees who are laid off are generally eligible for up to 26 weeks of unemployment insurance benefits during their unemployment. During periods of high unemployment, the federal government has sometimes passed legislation extending the amount of weeks employees can collect benefits. Extended-unemployment benefit programs in states with high unemployment rates have also been established. However, some states are backing away from 26 weeks. Despite its high unemployment rate, in 2011, Michigan became the first state to cut the number of weeks to 20 because its unemployment fund was so far in the red. HR managers need to stay abreast of federal and state changes such as these so they communicate the right information to workers.
Workers eligible for unemployment benefits must submit an application for unemployment compensation with their state employment agencies, register for available work, and be willing to accept any suitable employment that may be offered to them. However, the term “suitable” gives individuals considerable discretion in accepting or rejecting job offers. The amount of compensation workers are eligible to receive, which also varies by the state, is determined by a worker’s previous wage rate and length of employment.
Chapter 11: Employee Benefits: 11.2b Unemployment Insurance Book Title: Managing Human Resources Printed By: Cedric Turner ([email protected]) © 2016 Cengage Learning, Cengage Learning
© 2020 Cengage Learning Inc. All rights reserved. No part of this work may by reproduced or used in any form or by any means - graphic, electronic, or mechanical, or in any other manner - without the written permission of the copyright holder.
