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unemployment insurance question for employers

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  1. MikeCaroJr MikeCaroJr is offline

    Posts: 1,377
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    Sep 11th, 2010 (9/11/2010 5:21pm)

    I know there are several posters here that are very knowledgeable on this subject and I can't seem to find the info on google.

    If a former employee files for unemployment, does the employers unemployment insurance contribution increase? If so, how much is this usually percentage wise? Thanks in advance.
  2. R_U_Nuts R_U_Nuts is offline

    South Bend, IN
    United States

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    Sep 11th, 2010 (9/11/2010 5:55pm) in reply to MikeCaroJr

    Yes it does but I can't tell you how much. I have a payroll company that takes care of that stuff for us.

    Just called my payroll lady and she says it would only go up if you had alot of people file. Just one person should make zero difference in you tax rate.
    Edited By: R_U_Nuts Sep 11th, 2010 at 05:51 PM
  3. Da Donkey Da Donkey is offline

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    Sep 11th, 2010 (9/11/2010 6:02pm) in reply to R_U_Nuts

    As an employer, I don't pay that! :)

    I guess I don't have enough employees yet.
  4. R_U_Nuts R_U_Nuts is offline

    South Bend, IN
    United States

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    Sep 11th, 2010 (9/11/2010 6:30pm) in reply to Da Donkey

     
    Originally Posted by Da Donkey View Post

    As an employer, I don't pay that! :)

    I guess I don't have enough employees yet.

    Unemployment Insurance Taxes

    Unemployment Insurance (UI) is a federal-state program jointly financed through federal and state employer payroll taxes (federal/state UI tax). Generally, employers must pay both state and federal unemployment taxes if: (1) they pay wages to employees totaling $1,500, or more, in any quarter of a calendar year; or, (2) they had at least one employee during any day of a week during 20 weeks in a calendar year, regardless of whether or not the weeks were consecutive. However, some state laws differ from the federal law and employers should contact their state workforce agencies to learn the exact requirements. Click here for state links.
  5. Lenny Lenny is offline lail henny!

    Nashville, TN
    United States

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    Sep 11th, 2010 (9/11/2010 6:49pm) in reply to R_U_Nuts

    What portion is paid by employer and what by employee? I know the employer writes the check, but isn't a portion withheld from the employees stated wage? Is it part of FICA, or is that just SS/Medicare/aid?
  6. R_U_Nuts R_U_Nuts is offline

    South Bend, IN
    United States

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    Sep 11th, 2010 (9/11/2010 8:13pm) in reply to Lenny

    The employee pays zero into unemployment insurance as far as I could tell.
    Edited By: R_U_Nuts Sep 11th, 2010 at 08:13 PM
    Reason: one more e
  7. HK_MP5N HK_MP5N is offline

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    Sep 11th, 2010 (9/11/2010 8:32pm) in reply to R_U_Nuts

     
    Originally Posted by R_U_Nuts View Post

    The employee pays zero into unemployment insurance as far as I could tell.

    This and ditto on no % change if just one person files a claim.
  8. MikeCaroJr MikeCaroJr is offline

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    Sep 11th, 2010 (9/11/2010 9:19pm) in reply to HK_MP5N

    Thanks guys, my father has 2 that filed. Not expecting anymore, but how significantly does it go up per extra employee filing?
    Thread Starter
  9. Lenny Lenny is offline lail henny!

    Nashville, TN
    United States

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    Sep 11th, 2010 (9/11/2010 10:18pm) in reply to MikeCaroJr

    Don't know how much the state payroll taxes are, but if you pay your taxes on time, this seems pretty damn reasonable:

    The FUTA tax rate is 6.2% of taxable wages. The taxable wage base is the first $7,000 paid in wages to each employee during a calendar year. Employers who pay the state unemployment tax, on a timely basis, will receive an offset credit of up to 5.4% regardless of the rate of tax they pay the state. Therefore, the net FUTA tax rate is generally 0.8% (6.2% - 5.4%), for a maximum FUTA tax of $56.00 per employee, per year (.008 X $7,000. = $56.00). State law determines individual state unemployment insurance tax rates. For a table of current tax rates and taxable wage base information for individual states, Click here and select Significant Provisions of State UI Laws.
  10. sonieme sonieme is offline

    Toledo, OH
    United States

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    Sep 11th, 2010 (9/11/2010 10:42pm) in reply to MikeCaroJr

     
    Originally Posted by MikeCaroJr View Post

    Thanks guys, my father has 2 that filed. Not expecting anymore, but how significantly does it go up per extra employee filing?

    It shouldn't go up just by an ex-employee filing. If the ex-employee collect unemployment checks then it will probably go up.

    The employer pays $ into their own state fund. The fund is then compared to wages paid by the company to come up with the % rate that the employer pays. The lower % the fund number to the wages means a higher rate paid by the employer. That is for the state (SUTA) rate. The federal number (FUTA) should never change if I recall correctly.

    This is just off the top of my head after 10 beers at halftime of ND/Mich. I could give you a more precise answer if I was in the office during the week. Unfortunately for you I'm on vacation next week.
  11. Stockage Stockage is offline

    NV
    United States

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    Sep 11th, 2010 (9/11/2010 10:51pm) in reply to sonieme

    if less than 15 employees the state rate is going to double.
  12. Lenny Lenny is offline lail henny!

    Nashville, TN
    United States

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    Sep 11th, 2010 (9/11/2010 11:18pm) in reply to Stockage

    State rates

    http://www.staffmarket.com/peo/pricing-suta-2008.asp

    Wow, these vary pretty widely.

    Both in max rate and taxable wages.
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