How Is My Employer Account Charged For Benefits Paid To My Former Employees?

If you are the only employer who paid wages to the benefit claimant for covered employment in his/her base period, you are the only employer with potential liability for benefits paid on the claim. However, if the claimant was paid wages for covered employment by more than one employer in his/her base period, the liability for benefit payments is prorated. Each employer is then responsible for a percentage of each payment, which is equal to the percentage of the total base period wages paid to the claimant by that employer. Example: Total base period wages = $10,000
Covered base period wages paid by Employer A = $5,000 (50%)
Covered base period wages paid by Employer B = $2,500 (25%)
Covered base period wages paid by Employer C = $2,500 (25%)
If the claimant was paid an unemployment check in the amount of $200, each employer's charge is as follows: Employer A = $100 (50%)
Employer B = $50 (25%)
Employer C = $50 (25%)

The information on this page is meant to provide a general overview of the law. The laws in your state and/or city may deviate significantly from those described here. If you have specific questions related to your situation you should speak with a local attorney.

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