Unemployment Insurance

1
Unemployment Insurance

• Designed to lessen the financial hardship of
  losing ones job
• Must have been working to file for benefits
• Controlled by individual states
• North Carolinas Employment Security Commission
  regulates disbursements when claim filed

2
Unemployment Insurance

• Social Security Act provides for joint federal
  and state unemployment system
• Federal Unemployment Tax Act (FUTA)
• State Unemployment Tax Act (SUTA)
• Both FUTA and SUTA taxes are paid completely by
  employer
• Monies are paid into a special fund for workers
  who have been discharged without cause (lost
  their jobs through no fault of their own)

3
Unemployment Benefits

• Employee files claim through NC Employment
  Security Commission
• One or two week waiting period before benefits
  are paid
• Benefits payable for limited number of weeks
• Percentage of lost wages paid

4
Filing Unemployment Claim

• Employee
• Files claim with Employment Security Commission
• Collects money when laid off from job or
  otherwise discharged without cause
• Searches for replacement job

5
Unemployment Insurance

• Reasons workers are NOT covered
• Violating a contractual employment obligation or
  other discharges for cause
• Striking employees
• Quit voluntarily
• Refuse to accept similar replacement work

6
Unemployment Insurance Costs

• Business employment history is risk factor
• How often employees are laid off from work
• How many employees are laid off from work
• How long employees are laid off from work

7
Workers Compensation

• A government-regulated program that provides
  medical benefits and income to employees who are
  injured or who develop a disability or disease as
  a result of their job
• Indemnifies (pays) employee for their loss
• Job related illness or injury
• Coverage is no fault
• Insurance is paid for by employer

8
Workers Compensation

• Workers compensation indemnifies employee for
• Rehabilitation
• Related medical expenses
• Time lost from work
• Permanent damage from injury or illness

9
Workers Compensation

• Costs
• Paid completely by employer
• Cost factors
• Employers claim history
• Risk rating of job

10
Retirement Review

• Answering the following questions
• 1. Name 3 examples of retirement plans.
• 2. What is portability?
• 3. What are 2 examples of Government Pension
  Plans?
• 4. What is the retirement plan called that an
  individual saves part of their income each year?
• 5. What is one thing an employee must do in
  order to file for unemployment?