Unemployment from the employer's perspective

[Mama_Zappa]

Usual disclaimers, YANAL, YANAUS (You are not an unemployment specialist), YDLIMS (You don’t live in my state)…

We’ve had a nanny looking after the kids for a number of years now. Everything’s been legal and above-board: we withhold taxes, I file quarterly state withholding reports, I file quarterly unemployment taxes…

We’re letting the nanny go in a few weeks due to budgetary issues. Since she’s not quitting of her own volition, and isn’t being let go for cause (an issue in some states), as I understand it, she should be able to collect unemployment.

If you’re ever let someone go or been let go yourself, what sort of documentation does the employer provide? I wouldn’t be able to do anything on corporate letterhead, obviously, but could certainly write a letter stating the termination date, salary, etc.

As the releasing employer, am I on the hook for some portion of her unemployment payments when she files? (or were the unemployment tax premiums all I was on the hook for).

I’m assuming that in general, if I were to hire an employee in the future, my own rates would go up (the percentage I have to pay the unemployment folks on the new employee’s wages, that is). Do the rates go up massively ? (we don’t anticipate hiring a nanny again as our kids are so old, just curious.

If someone develops health issues while collecting unemployment, do they get a “bye” on having to seek employment while they’re ill? or could they lose their benefits due to being unable to work? (this might be an issue; she told me today she may be scheduling minor surgery).

If someone were let go due to health issues making them unable to work (e.g. if the sitter had a medical issue and I’d had to let her go for that reason), can they collect unemployment for that reason? That’s not our situation here, I’m just curious.

I know a lot of these questions may vary by state and I’ll be contacting the state I live in to get definite answers to our specific situation.

[MannyL]

Ok a question right up my alley since I do have some background on the matter.

Note the following information is for New Jersey only and is how I understand it as a n Unemployment Claims Agent.

When someone files for unemployment we send paperwork to the employer asking why they are no longer working. The employer fills it out and sends it back to us. If the reason they are no longer employed is one where there is no issue such as the job being eliminated they are able to collect benefits right away.

In New Jersey you need to be Able and Available for work and Activly seeking work in order to collect benefits so…

If they are not working because they are unable to for any reason they get scheduled to speak to a claims examiner to determine if they can collect unemployment.

If they can’t do any work due to a medical condition they need to file for temporary disability. If they can work but can not due the work they were doing due to the medical issue they are in many cases able to collect unemployment.

[Broomstick]

@Mama_Zappa

If you’re ever let someone go or been let go yourself, what sort of documentation does the employer provide? I wouldn’t be able to do anything on corporate letterhead, obviously, but could certainly write a letter stating the termination date, salary, etc.

Speaking as someone who was laid off in November (from a mid-size corporation), my employer gave me just such a letter. I found it helpful as I navigated the bureaucratic maze associated not only with collecting unemployment but also other forms of assistance (when I applied to the state for help with medical insurance, for example). If she was a good employee, sending her along with that sort of documentation could be very helpful to her down the road. Be sure to include your contact information so anyone who wants confirmation can easily contact you.

[Emmy2635]

@Mama_Zappa

If you’re ever let someone go or been let go yourself, what sort of documentation does the employer provide? I wouldn’t be able to do anything on corporate letterhead, obviously, but could certainly write a letter stating the termination date, salary, etc.

Normally the employer does not provide documentation to the employee, except some states require employers to give a pamphlet explaining their unemployment rights . If the employee chooses to file for unemployment, they will mail you a form to complete that asks for all of that information.

@Mama_Zappa

As the releasing employer, am I on the hook for some portion of her unemployment payments when she files? (or were the unemployment tax premiums all I was on the hook for).

You do not have to pay any of her unemployment – that is what the tax premiums were for.

@Mama_Zappa

I’m assuming that in general, if I were to hire an employee in the future, my own rates would go up (the percentage I have to pay the unemployment folks on the new employee’s wages, that is). Do the rates go up massively ? (we don’t anticipate hiring a nanny again as our kids are so old, just curious.

Yes, generally the rates would go up, but probably not massively with only 1 employee.

@Mama_Zappa

If someone develops health issues while collecting unemployment, do they get a “bye” on having to seek employment while they’re ill? or could they lose their benefits due to being unable to work? (this might be an issue; she told me today she may be scheduling minor surgery). If someone were let go due to health issues making them unable to work (e.g. if the sitter had a medical issue and I’d had to let her go for that reason), can they collect unemployment for that reason? That’s not our situation here, I’m just curious.

It is my understanding that if you are medically unable to work, you do have more of a chance to win unemployment-- at least in my state. This is one thing that will pretty much guarantee that you win unemployment.

[Mama_Zappa]

Thanks for the replies!

I did some sniffing around and found the form the unemployment folks will send me (as the employer) once the nanny applies for unemployment; even though I gather I’m not supposed to fill that out in advance, it’ll help me make sure I’ve got everything documented. I’ll definitely give her a letter stating the end date and severance pay, figure that’ll help as Broomstick noted, even if it’s not strictly required.

I’m glad to hear I won’t be billed for the current person’s unemployment costs - some things I stumbled across confused me, but I had thought the taxes I’ve paid all these years covered that. Phew!