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MultiState Unemployment


Tax Bird

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I'm wondering, if a person works for the same employer all year but in multiple States for varying durations, how do they file for unemployment? Seems to me a person files in their home State. If that's the case then does the employer have to pay into UI for the resident State of their employee as well as the work State (as a general rule)? Seems impractical to me but that may be the way it is.

I'm wondering if anyone here has some insight they could share?

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Both states will collect unemployment tax based upon the wages paid in their state. As a result, I don't think you are allowed to draw benefits from both states at the same time, but you are NOT limited to only drawing from your state of residence. I believe the application to draw asks if you are receiving from any other state. I think you have to qualify for the benefits from whichever state you choose to apply.

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Both states will collect unemployment tax based upon the wages paid in their state. As a result, I don't think you are allowed to draw benefits from both states at the same time, but you are NOT limited to only drawing from your state of residence. I believe the application to draw asks if you are receiving from any other state. I think you have to qualify for the benefits from whichever state you choose to apply.

This is what I suspected. So for the employer who has jobs in multiple States, conceivably they will pay much more in UI than if they just stayed put in one State. Meaning, the U.I ceiling would never be reached with one State but will be exceeded cumulatively when combined.

*Ugh* I hope I'm wrong.

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Woo Hoo!

I found a lovely document on the US DOL website the Interstate Reciprocal Coverage Agreement to which all States have signed except MN.

The DOL website is so handy, I will post the entire link!

http://www.workforcesecurity.doleta.gov/unemploy/laws.asp

Eh! But I can't access the document without a password. Poop! If I find a way to get the complete doc I'll post it here.

In the meantime, the agreement allows for payment of UI into only one State per employee. In other words, the wages earned in one State *do* count for wages earned in another State so that they do not have to reach each wage base individually in each State.

Halleluia! (Cue the choir...)

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All I see is the states agreeing as to paying benefits. I don't see anything about the worker's business paying contributions. But then I only scanned through all that nonsense wording.

Starting on B-8 it says, in part "...The purpose of this plan shall be to provide for coverage under the unemployment compensation law of one State of services performed by an individual for a single employing unit..."

Another OldJack? Not likely! :P

So it WAS you! Why didn't you read my mind then? Humph!

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