What is Unemployment Insurance?
Unemployment insurance is a form of social insurance, administered by Michigan’s Unemployment Insurance Agency (UIA). It is designed to provide unemployment benefits to help workers replace some of their lost wages after they have become unemployed through no fault of their own, such as by a layoff. The benefits allow workers enough time to look for a job reasonably similar to the one they had. It also helps an employer by keeping experienced workers in the area and available to return to the employer when times get better. Finally, it helps the entire community during an economic downturn, because unemployment benefits are spent locally to buy food, clothing, and other necessities of life that local merchants sell. Unemployment insurance is like fire insurance you carry on your building, or health insurance you carry on yourself, your family, and your employees. Insurance is a fact of business life. It protects against the uncertainties of the future. Unemployment insurance works the
Unemployment benefits are paid to eligible individuals from taxes paid by employers. • The federal government collects an unemployment tax under the Federal Unemployment Tax Act, which primarily finances administrative costs, loans to states, and extended benefits. • The state collects payroll taxes from employers to cover benefits, which are deposited to the state’s Unemployment Trust Fund. • Unemployment Insurance truly functions like an insurance policy. In Texas, employers pay into the system to insure their employees against loss of wages, and the system will provide financial assistance to eligible individuals who lose their job through no fault of their own while they look for a full-time job for a fixed period of time.
Unemployment Insurance is a Federal/State insurance system established to protect workers by paying benefits during periods of involuntary unemployment and aid the business community by stabilizing the available work force. The system is funded through payroll taxes on employers. Who Must Pay? Generally, any employing unit that has paid wages for employment in Nevada of $225 or more during any calendar quarter must register with the Employment Security Division, and pay taxes on those wages. In general, an “employing unit” means any individual or type of organization, including any partnership, association, trust, estate, joint-stock company, insurance company, corporation, or a receiver or trustee in bankruptcy. “Employment” means service, including service in interstate commerce, performed for wages or under any contract of hire, written or oral, express or implied. Unemployment Insurance Rates: Employers starting a new business in Nevada must pay unemployment insurance (UI) tax at a
