FAQ

What is Unemployment Insurance?

Unemployment Insurance is for workers who lose their jobs through no fault of their own.

Unemployment Insurance provides partial wage replacement during a period of Unemployment to those who meet the terms and conditions of the state’s Unemployment Insurance law. Benefits are not high enough to prevent a claimant from wanting to procure another form of income; however, they maintain purchasing power during Unemployment and give the claimant time to look for work that matches his skills.

The UI Program also helps

the worker find a suitable job through a Division of Workforce Development center and other Workforce Investment Act (WIA)

partners.

How is the Unemployment Insurance program funded?

The UI Program is financed by the Federal Unemployment Tax Act (FUTA) and must adhere to broad Federal guidelines. Administrative

funds are distributed to States based on each State’s claim load.

Funds are deposited to

the State’s Unemployment Insurance Trust Fund/Account.

What are Employers?

An Employer is any individual, partnership, association, corporation, governmental entity, or other type of organization (including non-profits, religious organizations, and agricultural entities) which has in its employment one or more individuals performing services within its state.

Do Employers contribute to the Unemployment tax fund?

Most Employers are required to pay Unemployment Insurance tax on wages paid to employees.

Do Employers have to register using the Employer Portal?

No, Employers can use a paper registration form. Once the paper registration form is sent to the UI agency, an Internal employee will enter the information into SUITS which creates an Employer account.

However, it is always encouraged for Employer to enroll themselves

Employers can also register using an interface file.

What is a Client?

•      A client is an Employer who has an agreement with an Agent for the Agent to perform certain UI roles on behalf of the client.

•      The client or Agent must provide the UI agency with a Power of Attorney (POA) document to establish the client/Agent relationship.

What is an Agent?

•      An Agent is a third-party administrator who has an agreement with an Employer (client) to perform certain UI roles on behalf of the client. PEO’s must register as Agents in order to do work on behalf of an Employer.

•      The client or Agent must provide the UI agency with a Power of Attorney (POA) document to establish the client/Agent relationship.