What Is Unemployment Insurance?
Unemployment insurance is a program designed to provide regular income to those who have lost their jobs. Funding for this program comes from a tax on employers; unlike workers’ compensation, this tax is paid by the employer to both state and federal government entities who jointly run the program.
Unemployment insurance covers a broad spectrum of the workforce, as long as minimum requirements are met. Some employees are disqualified from receiving benefits due to their behavior on the job or because of the time they left employment. Many states have strict rules with regard to filing a claim, the time periods before receiving unemployment income, or appealing a benefit decision.