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Politics : View from the Center and Left

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To: Lane3 who wrote (50978)2/29/2008 12:58:38 PM
From: cnyndwllr  Read Replies (1) of 542681
 
Lane, the "bitching is not warranted.

The California employer does not pay the claim directly. It is, as you suggest, paid out of a big pool. The pool is funded by contributions from both employers and employees and is based on the amount of payroll and the factors below.

California's EDD website:

Unemployment Insurance

Q. How can I as an employer minimize my Unemployment Insurance contribution rate?

A. An employer's contribution rate is based upon the ratio of the reserve account balance to the average base payroll. As the reserve account balance decreases or the average base payroll increases, the ratio decreases. A decrease in the ratio may result in a higher contribution rate.

Employers who maintain a stable payroll and file and pay their taxes on time will generally have a lower Unemployment Insurance (UI) contribution rate. Employers who experience high turnovers or large fluctuations in their payroll and/or do not file and pay their taxes on time will generally have a higher UI contribution rate.

The following are some suggestions that will help minimize UI contribution rates.
File and pay tax returns timely.
Work with employees to avoid layoffs and voluntary quits. Every separation has a potential to increase your contribution rate.
Permit leaves of absence. This helps you keep fully trained personnel.
Keep good records. Give written warnings prior to discharging an employee and keep a copy of these written notices and other supporting information to justify any action taken.
Conduct an exit interview. This helps you know why an employee is leaving and may result in changes to company policies or procedures that will assist you in retaining your employees.
Answer claim notices promptly, accurately and in detail.
Provide clear answers to telephone interview questions from EDD personnel.

-and-

Reason an individual is unemployed

The reason an individual is out of work can affect his/her eligibility for benefits. A person who is laid off is out of work through no fault of his/her own. A person who quits work or is fired from work will be scheduled to a telephone interview because there is a separation issue that must be resolved. The Department interviewer obtains and documents information about the separation from the employer and claimant and decides, according to law and regulations, if the person is eligible to collect benefits. The Department mails a notice to the claimant who is not eligible for benefits. The Department mails a notice to the employer who responded timely to the notice of claim filed. The notice advises the employer about whether the claimant is eligible or not, and whether the employer's account will be charged for benefits paid to the former employee. Either party can disagree with an unfavorable decision and file an appeal.

Individuals must meet eligibility requirements each week that they claim benefits.

A person must be physically able to work, available for work and actively looking for work each week benefits are claimed. An individual must complete a claim form every two weeks, sign and date the form and return it to the Department for payment. If the information on the form shows that the individual did not meet eligibility requirements, the Department will schedule a telephone interview. Based on the information obtained, benefits may be reduced or denied. An individual who disagrees with our decision to reduce or deny benefits may file an appeal.

Review finding a job to learn more about services EDD provides to job seekers.
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