Unemployment and Workers Compensation Insurance

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Unemployment and Workers Compensation Insurance

• chapter 4

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Unemployment Insurance

• Part of original Social Security Act
• Objectives
• To provide cash income during periods of
• To help unemployed find ___
• To stabilize ___ ___

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Unemployment Insurance Financing

• 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 ____ ____.

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Unemployment Insurance Eligibility

• 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 ________

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Unemployment Insurance Eligibility (cont.)

• Reasons for disqualification
• Voluntarily leaving without ___ ___
• Discharge for _____
• Refusal to accept ____ ____
• Involvement in ____ ____
• Receipt of ______ income
• Effects of disqualification

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Unemployment Insurance Benefits

• Usually __ weeks for regular benefits
• Benefit amounts are about ____ of income.
• Benefits subject to maximum and minimum amounts
• Some states have additional benefits if there are
  ______.
• Extended benefits available in times of ___
  _______

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Unemployment Insurance Problems and issues

• ___ benefit levels
• Ineligibility for ____
• Inability of program to effectively deal with the
  problems of __________

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Temporary Disability Laws

• Exist in Puerto Rico and five states
  California, Hawaii, New Jersey, New York, and
  Rhode Island
• Provide benefits for short-term, nonoccupational
  disabilities

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Workers' Compensation Laws

• Traditional employer defenses
• Basic legal effect of law Employers are _______
  liable but within limits.

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Types of WC laws

• Compulsory
• Voluntary in a few states. If er elects out,
  ____ __ ____ not allowed.

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WC Financing

• Typically paid fully by ______
• Depending on state, coverage from ____ _____
  and/or ____ ___.
• Employer premium calculated as ___ __ ______ and
  varies by ______

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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

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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 ________ employment

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WC Benefits

• ______ care--usually in full
• __________--average about ___ of income
• Death benefits
• funeral expenses
• Survivor income
• _______ benefits

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WC Problems and issues

• Inadequate coverage
• Inadequate benefits
• Increasing costs
• 24-hour coverage

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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).

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Questions?