By Winmark Business Solutions
The United States’ unemployment insurance system was designed with two objectives in mind: to provide a weekly check to workers who lose their jobs through no fault of their own and to promote economic stability by rewarding employers who minimize their workforce turnover.
The benefits paid to jobless workers are financed through federal and state unemployment taxes paid by employers. If you fire or lay off workers only when absolutely necessary, use the proper procedures to do it, and routinely contest unemployment benefit claims when you think the worker is ineligible, you may be able to lower your unemployment tax rate. In some states, you may even be able to lower your rate to zero and pay no unemployment taxes at all. However, if your business has a consistent habit of firing people or laying workers off, the taxes incurred on your business may start to highly impact your bottom line.
Which workers are eligible for unemployment benefits?
Which actions can disqualify someone from receiving unemployment benefits?
The most important thing to remember if you become unemployed by no fault of your own is to immediately check out what your options are by contacting your local government office for more information. You can also visit the United States Department of Labor website for more information.
Winmark Business Solutions (WBS) is a free Web site for small businesses and entrepreneurs containing over 6,000 pages of business-critical information and downloadable tools at www.WBSonline.com. WBS is a division of Winmark Corporation, a multi-brand franchisor with nearly 900 franchise locations in North America. With over 25 years working with small businesses, WBS draws upon years of experience to bring important small business articles, information, tools, forms, checklists, calculators and downloadable forms to the small business owner to help their business grow. WBS contains over 6000 pages of business-critical information all available at www.WBSonline.com.