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.

What are the Employer’s reporting requirements?

All registered and active Employers must submit quarterly wage reports regardless of whether or not they are liable to pay taxes.

Do all Employers need to register with the Unemployment agency in its state?

Most* Employers must register for an Unemployment Insurance account. Not all Employers are liable to pay Unemployment Insurance taxes; however, all must submit quarterly wage reports.

*There are certain exceptions to rule: Independent contractors are the most common type of Employer that do not have to register with the UI agency. Other exceptions include barbers, taxi drivers, clergy, etc.

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 Liability?

Liability is the obligation of the Employer to pay Unemployment Insurance taxes on wages.