Definition Of Unemployment Compensation In Insurance

Definition of "Unemployment compensation"

Wilma Rochelle McFadden, Real Estate Agent Keller Willams

Money paid through state and federal programs to workers who are temporarily unemployed. The program, which was created by the social security act of 1935, is managed by the individual states, which decide the level of benefits that will be paid and assess a payroll tax on employers to pay for the program. Employers may pay more or less tax depending on the stability of their workforces. Weekly benefits vary widely among the states.