Frequently asked questions
If a client has to pay unemployment to a caregiver and the withholding's done throughout the years is not enough to cover the unemployment what happens?
Luckily, this won’t ever be the case. The client pays unemployment insurance to cover him/her if a caregiver is granted benefits, so that payment is covered by his insurance tax (which essentially is working like an insurance premium). Instead, when the state reviews their tax rate each year, they may decide to increase the tax rate if the employer seems more risky to have caregivers file unemployment. The more claims they have, the higher their tax rate (theoretically).
If a brand new client employs a caregiver for 2 weeks and then lets them go, and the caregiver is granted unemployment what happens?
The state accounts for this as well. Each state has a specific minimum amount of time and/or amount of wages and employee has to be with or earn with an employer before they are eligible to be granted benefits. This is usually around 12 weeks but does vary by state. The smallest minimum we’ve ever seen was 4 weeks.
Does the Unemployment office ever bill the client for these wages per se?
Never! Clients do not receive a bill directly. This will always come through their unemployment tax account. If benefits are paid, they may receive statements each quarter called “Benefit Charge Statements” that sometimes look like a bill but are actually just summaries of what benefits were paid out and are for the employers’ records.