Question

In: Economics

All of the following are true regarding California unemployment benefits except: A. Unemployment insurance (UI) provides...

All of the following are true regarding California unemployment benefits except:

A. Unemployment insurance (UI) provides temporary payments to individuals who are unemployed through no fault of their own

B. Unemployment insurance benefits are taxable income for Federal purposes

C. Unemployment insurance benefits are not taxable by the State of California

D. The Employment Development Department (EDD) sends a Form 1099-MISC to each individual for the total unemployment insurance benefits paid during the prior year

Solutions

Expert Solution

(A) Unemployment insurance is insurance that people can benefit from if they lose their job and meet other criteria. Voluntary terminated workers and self-employed people are not eligible for unemployment insurance and must use their own resources to cover the situation when they are unemployed. The state government pays unemployment insurance from employer-sponsored unemployment tax funds.
Unemployment insurance explained

The unemployment initiative is a joint program of state and federal governments. Unemployment insurance provides cash benefits to unemployed workers who are actively looking for work. Workers eligible for federal unemployment tax (FUTA) compensation along with state employment agencies.
(B)
Each state has an unemployment insurance program, but all states must follow the specific guidelines set forth in federal law. Federal law provides for unemployment benefits throughout the state. The U.S. Department of Labor manages the program and ensures compliance with each country.

Workers who meet the minimum requirements can receive cash benefits of up to 26 weeks per year. The weekly cash scholarships are intended to replace the average of half the staff salaries. The state provides unemployment insurance by renting taxes imposed by employers. Most employers will pay FUTA federal and state unemployment taxes. 501 (c) 3 FUTA tax-free companies. All three countries also require minimum contributions from employees to state unemployment funds.

(C) Unemployed individuals who have not been in work for 26 weeks may be eligible for the Supplemental Benefits Program, if any. The extra benefits give the unemployed an additional 13 to 20 weeks. The expanded benefits will depend on the country's overall unemployment status.
Requirements and Claims for Unemployment Insurance

There are two basic requirements that the unemployed must meet to receive unemployment insurance benefits. Unemployed must meet state-mandated limits for wages or hours worked on a fixed basis. The state must also determine that a qualified person is unemployed through his or her mistake. An individual can apply for unemployment insurance when he or she meets both requirements.
(D)
Individuals file claims in the country where they work. Participants can file a claim by phone or on the state unemployment agency website. After the first application, it will take two to three weeks to process and approve the claim.

After approving a claim, participants must submit a weekly or bi-weekly report that tests or states their employment status. Reports must be submitted to remain eligible for benefits.

An unemployed worker cannot refuse to work in a week, and every request he has to report every week or two, every income he earns. The reported income includes independent work or paid work.


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