Unemployment and Worker’s
Part of original Social Security Act
To provide cash income during periods of
To help unemployed find ___
To stabilize ___ ___
Federal tax: effectively ___ percent of
payroll up to $7,000 for each employee
State tax: at least ___ percent of payroll
up to $7,000 or more (varies by state)
All states have some type of ____ ____.
Attachment to labor force--minimum
wages or work during prior year
Be able and available ______
Be actively seeking ____--must register
at ________ ______
Satisfy any prescribed _____
Be free of ________
Reasons for disqualification
Voluntarily leaving without ___ ___
Discharge for _____
Refusal to accept ____ ____
Involvement in ____ ____
Receipt of ______ income
Effects of disqualification:
Usually __ weeks for regular benefits
Benefit amounts are about ____ of income.
Benefits subject to maximum and minimum
Some states have additional benefits if there
Extended benefits available in times of ___
Problems and issues
___ benefit levels
Ineligibility for ____
Inability of program to effectively deal
with the problems of __________
Temporary Disability Laws
Exist in Puerto Rico and five states:
California, Hawaii, New Jersey, New
York, and Rhode Island
Provide benefits for short-term,
Workers' Compensation Laws
Traditional employer defenses
Basic legal effect of law: Employers are
_______ liable but within limits.
Types of WC laws
Voluntary in a few states. If er elects
out, ____ __ ____ not allowed.
Typically paid fully by ______
Depending on state, coverage from
____ _____ and/or ____ ___.
Employer premium calculated as ___ __
______ and varies by ______
Covered persons under WC
Most workers covered
Some groups may be excluded.
Agricultural, domestic, and casual employees
Employers with a small number of employees
State and local government employees
Eligibility for WC
Be in a _______ occupation
Be ____ or _______ by covered injury
Occupational illnesses ___ __ _____,
but possibly not as broadly as accidents
Arising ____ and in the ________
______ care--usually in full
__________--average about ___ of
WC Problems and issues
Taxation of Benefits
Contributions _____ to employer
Unemployment benefits ___ taxable.
W C benefits ___ tax free.
Temporary disability benefits are treated
as disability income and taxed accordingly
(see Chapter 8).