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The Effect of Unemployment Benefits on Previous Employer

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  • 12-31-2008, 01:41 PM
    clinch
    The Effect of Unemployment Benefits on Previous Employer
    My question involves unemployment benefits for the state of: New York.

    I have a friend who is applying for unemployment benefits from the State of New York after losing her job. However, her previous employer does not want her to collect any benefits -- claiming that the state takes the money directly from his company. He also doesn't want his insurance to go up. (There is also a controversy over whether the termination was voluntary or involuntary...)

    * If the insurance goes up, approximately what is the monetary difference?
    * If my friend claims general "unemployment benefits," how does this effect the previous employer? How much will he have to pay, etc.?

    Thanks.
  • 12-31-2008, 04:30 PM
    cbg
    Re: The Effect of Unemployment Benefits on Previous Employer
    There are too many variables to effectively answer this question. It depends on his current rate, how many open claims he has, the benefit amounts of the individual claims, and a number of others. There is no possible way to say, it will go up x dollars or y percent. There is no way to gauge how much any individual claim will affect a previous employer.
  • 12-31-2008, 06:15 PM
    clinch
    Re: The Effect of Unemployment Benefits on Previous Employer
    OK, I think he has a bunch of open claims, but that's irrelevant. Let's focus on the other question. If the woman (my friend) files for unemployment benefits from the state (NY), will this effect the previous employer, i.e. will these benefits be charged to him and his company? He claims that he will have to pay 100%, but I thought that benefits came from the state, like food stamps, etc. Thanks.
  • 12-31-2008, 06:31 PM
    cbg
    Re: The Effect of Unemployment Benefits on Previous Employer
    The state is the one who issues the unemployment checks. But the money that the state uses to pay the benefits is provided by the employers. 100%, in all but 3 states.

    Every quarter, the employer sends the state a check based on the amount of their payroll for that quarter. That money is invested by the state and it is the proceeds that are used to pay unemployment claims.
  • 12-31-2008, 06:49 PM
    clinch
    Re: The Effect of Unemployment Benefits on Previous Employer
    Thanks a lot. Is there an article or something that you could reference? (I actually know the employer too... And we're trying to get a neutral third party to mediate to avoid a legal brawl-- so if I could forward an article, it would be great.)
  • 01-01-2009, 08:39 AM
    cbg
    Re: The Effect of Unemployment Benefits on Previous Employer
    What kind of an article? Saying what?
  • 01-01-2009, 11:51 AM
    clinch
    Re: The Effect of Unemployment Benefits on Previous Employer
    If there is anything in print that I could cite when relaying the information that you provided, it would be very helpful. Thanks.
  • 01-01-2009, 12:02 PM
    cbg
    Re: The Effect of Unemployment Benefits on Previous Employer
    I am not aware of any articles describing how unemployment works. You should be able to find all the information you require on the website for the unemployment office of your state.
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