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Shvoong Home>Law & Politics>Labor Law>Why Do We Have to Pay Back Unemployment in You Were Over Paid? Summary

Why Do We Have to Pay Back Unemployment in You Were Over Paid?

Article Summary   by:DrAntolic     Original Author: Anthony W. Antolic
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In 47 of our 50 states, your employer ultimately pays 100% of any unemployment benefits you receive. At least that is the text book answer to this question. However, if you look at the issue from the prospective of both the employer and the employee, the money that the employer is required to pay into the employees account would be available to give raises to worthy employees or make much needed upgrades to operating capital. The employer pays into a state fund (SUI) and a federal fund (FUTA): nevertheless, this is money set a side for the employee, weather or not the money comes in the form of a bigger paycheck or Unemployment Insurance, it still belongs to the employee.

The state issues your the check from its account, so in that since it appears that the state pays you the benefit check, But then they bill the employer for the amount of those disbursements. So in actuality, the employer is still paying it. In Fact,, Unemployment commission employees will not even call it "Unemployment Insurance" because it is in effect not insurance in the way it is handled, They use the term "Unemployment Compensation" instead, or at least when talking to the employer.

Still this “Compensation” in many cases becomes an unrepresented taxation. After all not every one files for Unemployment, as a result the Employee's account becomes forfeit at the point of death. So rather then “Compensation” from this fund going to the family of the diciest employee, it is used by Uncle Sam any way he sees fit. From this prospective the employer is being taxed not once but three times, and forced to pay into an already broken welfare system.

If America is going to survive, we must have a true government reform, starting with the welfare system.

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Published: November 05, 2010   
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