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Conference 7.286::digital

Title:The Digital way of working
Moderator:QUARK::LIONELON
Created:Fri Feb 14 1986
Last Modified:Fri Jun 06 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:5321
Total number of notes:139771

3422.0. "Who pays what" by ROMEOS::STONE_JE () Fri Sep 30 1994 21:22

    If a company lays folks off, and after the peoples packages have run
    their course and the folks who couldn't find work start receiving
    unemployment, who pays that unemployment benefit?  The Company that
    laid them off, the county, state or who?
    
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3422.1NLA0::ONOThe Wrong StuffFri Sep 30 1994 21:536
Normally the employer pays the state a premium for "unemployment
insurance".  When the worker becomes elegible for unemployment 
benefits, they are paid by the state.

BTW, TFSOed employees are immediately eligible for unemployment 
benefits in some states.
3422.2Then the rates goes upSSDEVO::BRADACHPurity Of EssenceMon Oct 03 1994 13:132
In most states the more you  "right size" the higher your 
unemplyment insurance premiums are.
3422.3YOU and ISIERAS::MCCLUSKYMon Oct 03 1994 21:026
    You and I pay.  Any government program, costs us all, unless the
    program produces revenue to off-set the cost.Remember that the people
    are the government, so  if government provides a service, the people
    pay for that service, unless there is revenue produced.  And, even in
    those few cases, the complexity results in additonal management re	
    quirements, which adds to government's cost.
3422.4REGENT::POWERSTue Oct 04 1994 11:4320
>                     <<< Note 3422.3 by SIERAS::MCCLUSKY >>>
>
>    You and I pay.  Any government program, costs us all, unless the
>    program produces revenue to off-set the cost.

You and I pay, but not because it is a government program (which it is),
but because it is a (mostly) employer-funded program.  (It is a government-
supplemented program, especially when times are bad.)

>    Remember that the people
>    are the government, so  if government provides a service, the people
>    pay for that service, unless there is revenue produced.

The people are also the companies.  Just like the myth of the "employer 
contribution" to Social Security, unemployment insurance is actually 
a hidden contribution from the employee, since it has to be computed by 
companies as part of what they can afford to spend ON (not necessarily TO)
employees.

- tom]
3422.5Employers pay and so do weSIERAS::MCCLUSKYTue Oct 04 1994 14:583
    Check your pay stub, as I have for the last 40 years and you will see a
    deduction for unemployment compensation insurance.  Since I have never
    used it, I feel I have paid way more than enough.
3422.6where??? not that I see (-1)GRANMA::JWOODTue Oct 04 1994 17:061
    
3422.7It varies from state to stateROWLET::AINSLEYLess than 150 kts. is TOO slow!Tue Oct 04 1994 17:085
re: .5

There is no such deduction in Texas.

Bob
3422.8NOTIME::SACKSGerald Sacks ZKO2-3/N30 DTN:381-2085Tue Oct 04 1994 17:081
It varies from state to state (and presumably from country to country).
3422.9NOVA::FISHERTay-unned, rey-usted, rey-adyWed Oct 05 1994 10:183
    I've never seen it on my stub...
    
    ed
3422.10ISLNDS::YANNEKISThu Oct 06 1994 16:038
    
    I am the treasurer at my kids day care center.  We pay Massachusetts a
    3.6% unemployment tax (% of gross payroll).  So for a $20,000/ year
    employee we are paying $720/year in unemployment tax ... and we've
    never layed anyone off in 18 years.   The employees do not directly pay
    any of this.
    
    Greg
3422.11careful!ANARKY::BREWERnevermind....Thu Oct 06 1994 18:466
    
    	re:  .5
    
    	Since you work for Digital, you MAY see the benefit from
    	that deduction!
    	
3422.12ISLNDS::YANNEKISFri Oct 07 1994 14:3214
    
>    I am the treasurer at my kids day care center.  We pay Massachusetts a
>    3.6% unemployment tax (% of gross payroll).  So for a $20,000/ year
>    employee we are paying $720/year in unemployment tax ... and we've
>    never layed anyone off in 18 years.   The employees do not directly pay
>    any of this.
    
    Who is this guy? He doesn't know what he is talking about!  (Oh yea it
    was me).
    
    The unemployment tax is only on the first X dollars of each employees
    gross salary.  (X is about $10,000 I think ... so the max is about $360
    per year per employee)
       
3422.13South Africa and the UIF.JOBURG::HARRISSat Oct 15 1994 13:4711
    In South Africa, You pay unemployment Insurance (UIF) up to a certain
    Salary ceiling. Thereafter there is no UIF payment. What I do not know
    is if you are still entitled to claim Unemployment benefits thereafter.
    Also in South Africa you may only draw unemployment for 6 months and
    that is only after the UIF has seen three applications from yourself
    and the replies in which it is noted that you have been unsuccessful.
    And on top of that you must collect you UIF payment yourself - It
    cannot be mailed to you. 
    In addition to Unemployment benefits, the UIF also pays out the same
    amount to you as "Illness benefit" if you are hopitalized and receive a
    reduced salary.  Cheers Ivan Harris@JHB