Employees and Unemployment Funds

The number one myth in this country is that employees pay into unemployment and therefore are only getting back what they payed in to unemployment when they are layed off and collect. WRONG! Even US Senator Jay Rockefeller of Virginia got this one wrong recently in an speech on the steps of the National's Capital.

Employers pay into state unemployment funds on a quarterly basis and yearly into a national fund (FUTA). Employers are taxed on the number of employees they have layed off and is based on a formula. Employees do not pay anything into the state or federal unemployment funds. Anyone with any doubts should check their paycheck stub. They'll find federal taxes, state taxes, Social Security, Medicare deductions, but no unemployment funding deductions.

12/7/01 ( 543 )
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