Unemployment Insurance is also often referred to as “Unemployment Benefits”. It is a sort of insurance that is provided by the state. It pays up the individuals every week. This payment gets done only when the individual loses their job.
To be eligible for this the individuals are also required to meet certain set criteria.
How Does This Get Funded?
The Unemployment Funds get funded by the taxes that the employers have to pay. For instance, there’s the FUTA and other various state taxes.
The FUTA is known to charge 6% of each of the employee’s wages. This is also offset by a credit percentage of 5.4% – on the tax payments.
Requirements/Criterions For Being Eligible For Unemployment Insurance
There are quite a few set criteria that are to be met for even applying for this. Here is a list of some of the requirements that are to be met to be eligible for Unemployment Insurance:
- wage and work requirements
- unemployment shouldn’t be the fault of the individual
- partial/total employment
- job separation that is approvable
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