How did unemployment compensation come into being?

Answer 1

Benefits are paid by the state from a special fund. The fund gets its money from employers, who pay a tax specifically for this program. The funding mechanism is very different from a system such as workers' compensation, in which an employee receives payments directly from an employer through the employer's insurance company. It is also different from benefit programs that use state general fund money. The fund that pays unemployment insurance benefits is not available for other purposes.

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Answer 2

The employers get the money to pay their payroll taxes (which include the unemployment portion) from the revenues they receive in the selling of their merchandise or services as a process of doing business.

Answer 3

Generally, they come from taxes on income from the employed and act as a form of insurance that should you lose your job there will be a safety net, albeit not a very good one, to help you through the difficult times until you are working again.

Answer 4

Every state assesses the employer through payroll deductions. The states vary in method and calculation, but in all cases, there is no deduction from employee's paychecks.

Answer 5

Unemployment benefits are paid from a state's treasury, which in turn collects them from a payroll tax imposed on the business. Employees never pay into the fund.

Answer 6

unemployment benefits were made to help unemployed people live by having a feasable income of some sort not earned from employment application

Answer 7

I want to know where does all the unemployment money come from