ROTFLMAOAnother reason to wash the car.
The federal-state unemployment insurance system helps people who have lost their jobs by temporarily replacing part of their wages. Created in 1935, the system is a form of social insurance, with contributions being paid into the system on behalf of working people so that they have income support if they lose their jobs. The system also helps sustain consumer demand during economic downturns, by providing a continuing stream of dollars for families to spend.
In addition, during and just after recessions, when jobs are scarce and many people are out of work for long periods of time, the federal government has historically provided funding for additional weeks of benefits in all states. The most recent federal program, called Temporary Emergency Unemployment Compensation (TEUC), was enacted in March 2002, and provided 13 extra weeks to all workers, and 26 weeks in very high unemployment states. The TEUC program is currently scheduled to start phasing out at the end of 2003. A handful of states also have additional benefit programs of their own.
In 1939, the Federal Unemployment Tax Act (FUTA) set the unemployment compensation-related provisions of the Social Security Act into motion, creating a joint state-federal program of unemployment insurance. According to the U.S. Department of Labor, FUTA authorizes the Internal Revenue Service (IRS) to collect a federal employer tax in order to fund state workforce agencies. Today, unemployment insurance remains an important cushion for laid-off workers and helps to stimulate the economy during recessionary periods.
How Unemployment Insurance is Funded
Contrary to popular belief, unemployment insurance is not funded by individual taxpayer dollars. Rather it is funded by the employer who, pursuant to FUTA, is mandated by the IRS to pay a certain percentage of taxable wages in state and federal unemployment taxes.
Obviously dated, the current extension is all federal and affect only the most long term un-employed.
It is insurance, not a hand out. Sort of like wrecking your car.