What Is Federal Unemployment Insurance?
The unemployment insurance tax in the United States is composed of the federal unemployment insurance tax and the state government unemployment insurance tax. The federal unemployment insurance tax is levied by the federal government to make up for the insufficient funding of the state government's unemployment insurance. It provides the basic living expenses for the temporarily unemployed. Paid by the employer, the tax rate in 1994 was 6.2%.
Unemployment insurance tax
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- Chinese name
- Unemployment insurance tax
- The unemployment insurance tax in the United States is composed of the federal unemployment insurance tax and the state government unemployment insurance tax. The federal unemployment insurance tax is levied by the federal government to make up for the insufficient funding of the state government's unemployment insurance. It provides the basic living expenses for the temporarily unemployed. Paid by the employer, the tax rate in 1994 was 6.2%.
- Unemployment insurance tax amount : It is the product of the employer's unemployment insurance tax rate and the employee's annual income under the unemployment insurance tax limit.
- U.S. Insurance Tax
- The U.S. federal government allows the state government to offset the unemployment insurance tax paid by the federal government with its own unemployment insurance tax amount, which was reduced to 5.4% in 1994, so the federal unemployment insurance tax rate is only 0.8% (6.2 % -5.4%), the tax object is the total salary paid by the employer to the employee, with a maximum limit of 6,000 yuan.
- Federal law requires that the unemployment insurance tax base include at least the first $ 7,000 of an employee's annual income. Currently, 80% of the state's unemployment insurance tax base is higher than federal regulations, and Alaska is even as high as $ 23,200. An important feature of Unemployment Insurance Salary Tax is that its tax rate is different for each employer. It depends on the experience of the company firing employees. The higher the dismissal rate, the higher the tax rate. This is called the "Experience Rated" method . The problem is that in general, the tax cost to the employer from firing an employee is lower than the unemployment benefits received by the employee as a result of being fired. In this way, when the company needs temporary layoffs due to changes in market demand, the company is willing to lay off employees to spend Temporary difficulties. Since employers' increased tax costs are lower than the unemployment benefits that employees receive as a result of unemployment, temporary layoffs may be beneficial to both employers and employees, and the consequence for society is an increase in unemployment. Unemployment insurance payroll tax is different from social security payroll tax. Unemployment insurance payroll tax is counted into the general fund, while social security payroll tax revenue is counted into the social security trust fund, which is implemented as "special fund".