Employers and Unemployment Insurance

[FitChick]

I live in California and have always worked for national and international companies with great benefits. Even those companies these days are downsizing and laying off workers. At least there is some consolation that you won't be broke while job hunting because you can get unemployment benefits.

 

I've been answering ads for small companies and even family type businesses. What I'm wondering is if they are required to pay into a state fund or something similar so that if they went out of business I'd be covered. How can I find that out during an interview?

 

Anything else I need to know about working for one person or a small business compared to a large corporation to protect myself? If the salary is big enough, I don't mind paying my own healthcare costs but I worry about other legalities and regulations and how I may potentially be put at risk and not protected.

[carhill]

http://www.edd.ca.gov/Unemployment/

 

AFAIK, if a business or individual has any employees on an official payroll, they are required to pay EDD a percentage of wages, modified by a risk factor based on prior claim experience.

 

The easiest way to determine if an employer is doing things 'by the book' is to contact EDD.

 

An employer can *choose* to let a potential claimant collect on their account even if the claimant does not meet the strict criteria for collection, but this can be in violation of policy.

 

Remember, this is an 'insurance' program paid strictly by employers. The state just administers and regulates it. Employers pay a percentage of *all* wages into their account, which claimants draw upon.

 

The EDD site is a real good information source, if you're not familiar with the details. Also, their representatives are generally very helpful as well.

[FitChick]

http://www.edd.ca.gov/Unemployment/

 

if a business or individual has any employees on an official payroll, they are required to pay EDD a percentage of wages, modified by a risk factor based on prior claim experience.

 

The EDD site is a real good information source... their representatives are generally very helpful as well.

 

If you can get a human being on the line! Massive cutbacks. California is bankrupt so I really just want to make enough money fast to move out of state. I'll have a look at the EDD website.

[carhill]

If you're an employer, you're paying them, so they respond. Not sure about employee claimant.

 

Also, my best friend has over 50 employees and is really knowledgeable about EDD stuff. I'll ask him this weekend and see if he has any tips.

 

Am I required to register as an employer?

 

This is a good example of the information available at the EDD web site. Good luck!

[FitChick]

Guess what? Just for the heck of it I called and got through! I guess so many people have given up calling for lack of response that there actually was a line open. I was told that if I got paid with cash or a personal check it was likely they were not putting any money into UI.

[Star Gazer]

I'm not sure I understand your question.

 

Regardless of whether your employer follows through with its own EDD obligations, if you are involuntarily separated from your employment, you can still get unemployment benefits. The only thing that makes it tricky is if your pre-unemployment income isn't documented (cash), because it's that documentation that you use to establish your level of benefits.

[carhill]

Also, watch out for 'employers' who pay their workers as independent contractors. There are reporting requirements in such instances but no UI contributions. If you're not getting withheld (clear enumeration of withholding on the paycheck), then you're probably being paid as a contractor. As such, you won't qualify for UI. As I've been one for 25 years, my UI is 'savings'