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In CA, we pay a tax to the state of CA for unemployment based on the wages of an employee. That tax is divided into three portion, the bulk which goes into the Unemployment Insurance Trust Fund which funds your benefits. A very small portion goes to the US government to administer the system and a equally small portion goes to the state for administration.
The tax rate is similar to how insurance premiums are calculated. The more claims and the amount of claims an employer has, the higher their individual tax rate will be above the base rate. The more overall claims filed and paid, the higher the overall base rate becomes. There are also adjustment factors that come into play for those in chronic unemployment claim industries.
Certain employers can establish a trust fund themselves and pay the simplified base rate to the state and pay the actual claims directly from their own money. And we have certain exemptions from unemployment based primarily on the doctrine of "God will provide", even though most times god slams the door in their faces. Of course the federal government and DOD do not pay anything as they just reimburse the state along with a small admin fee on all their claims.
The last wallet that is tapped is of course the average taxpayer. CA EDD is the most employee friendly and probably holds more to the true intent of unemployment, so some benefits are paid directly from state funds as the state is prohibited from paying them from the UITF. These cases are when benefits are paid but the employer is not dinged because they really have no control over the claim. The administration comes from the small percentage the state keeps directly for unemployment admin and the benefits paid is via an appropriation from the state general fund.
So they basically have a big account, and my EDD comes from them?
Yes - unless it is a state-mandated benefit over which the employer has no control - such as trailing spouse. If you were laid off/terminated and were approved, the employer is paying.
I doubt it. There is enough lag in the reporting that they wouldn't know that you STOPPED collecting for at least 1 to 3 months. Then just because you stopped collecting doesn't mean that you got a job.
For the most part, they don't much care about you anymore, and it's not productive to waste time trying to guess what your former employer knows about you.
I doubt it. There is enough lag in the reporting that they wouldn't know that you STOPPED collecting for at least 1 to 3 months. Then just because you stopped collecting doesn't mean that you got a job.
For the most part, they don't much care about you anymore, and it's not productive to waste time trying to guess what your former employer knows about you.
I'ts more like I'm happy that they're paying and not the tax payers. Haha.... Its one of those things that when you get laid off, you know they let go one of the good ones.
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