What are the laws for laying an employee off? Will I still have to pay out of pocket every month?

Question

During this economic crunch I feel that it necessary to lay off one employee, she has been with the company over 8 years. Will I have to still pay out of my pocket or does the money we pay into unemployment insurance cover the charges?

Answer 1

Generally, if you lay off the employee, she can collect the unemployment you've been paying into, but you're not going to have to keep paying out of your pocket while she's laid off.  However, the more that employees draw from your unemployment, the higher your rates will be in the future.

Answer 2

Call your state labor dept? Or check their website.  There are usually FAQs for Employers.