Type of paper:Â | Essay |
Categories:Â | Unemployment |
Pages: | 2 |
Wordcount: | 327 words |
The unemployed compensation is a fee paid to the unemployed workers by the state either because they were retrenched, or lost their jobs due to layoffs. This money is meant to provide a source of income for people without jobs until they get another job. The compensation is also paid through direct deposit or cheques. In normal circumstances tax is funded by the employer when the salary ranges between $7,000 to $30,000 but depending on the country and the annual wages and salaries (Charlot, Malherbet & Ulus, 2016). Most states receive the tax money, and since the unemployment payment is administered in the country, a small portion of tax is a paid to the federal government. Usually taxable unemployment compensation includes disability payments, from a government program under the unemployment assistance and unemployment compensation due to the emergency and Disaster relief Act.
Workers compensation benefits are not taxed at the federal or state levels. However, a small portion of this type of compensation is taxed when the person receives the supplemental Security Income or the Social Security Disability Income (Charlot, Malherbet & Ulus, 2016). In other words, the reason why the federal income tax was introduced was to compensate workers that were under the compensation statute or act due to work related injuries or sickness. Survivors that fall under the same act are also paid if they are still employed. Individually, if an individual receives both the worker's compensation benefit and the social security disability benefit then they are taxed to a certain level (Charlot, Malherbet & Ulus, 2016). However, if the worker's compensation reduces due to social securities, then it is considered as social security income that is taxable. Therefore, the social security benefit can be calculated by using the standard formula by adding half of the total security benefits to other profits earned.
References
Charlot, O., Malherbet, F., & Ulus, M. (2016). Unemployment Compensation and the Allocation of Labor in Developing Countries. Journal of Public Economic Theory, 18(3), 385-416. DOI: 10.1111/jpet.12144
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Unemployment Compensation, Free Essay Sample. (2022, Feb 22). Retrieved from https://speedypaper.net/essays/unemployment-compensation
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