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Yes both directly and indirectly. An employer pays into it's state unemployment accounts on a minimium level of annual salary. In our case 12,000 x .01690. Our history is low - no ones has drawn in years - several have tried - at one point we had a zero percentage - a figure unheard of by the accountant. In a second business where many apply and often succeed in drawing unemployment - a high turn over business - with many prospect terminated to find a good one - the same state percentage is .3510. Now off to meet with another future unemployed because he can't fill out the weekly paperwork require to keep his job.

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Q: Does it cost the employer money if you go on unemployment?
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