Most states no longer penalize Social Security recipients with unemployment offsets, but five states -- Illinois, Louisiana, South Dakota, Utah and Virginia -- currently reduce weekly unemployment benefits by 50% of your prorated monthly Social Security check.
South Dakota and Virginia have repealed their offset laws, but still have a provision allowing them to deduct Social Security benefits from unemployment checks when state unemployment funds fall below a pre-determined threshold. The long recession and high unemployment rate triggered the offset in both states.
In the US, unemployment insurance is completely separate from social security taxes.
Employers pay federal (FUTA) unemployment insurance for each employee based on the employee's earnings. Most employers also pay state (SUI) unemployment insurance. Unemployment insurance is an employer expense. The employee does not pay into the unemployment insurance fund.
In the US, employement taxes are funded as follows:
Employee Pays (Withholding)
Federal Income Tax
FICA-Social Security
FICA-Medicare
State Income Tax
State Disability Insurance
Employer Pays (Tax Expense)
FICA-Social Security (matches employee withholding)
FICA-Medicare (matches employee withholding)
Federal Unemployment Tax Act (FUTA)
State Unemployment Insurance (SUI)
Employment Training Tax (ETT)
NOTE: this breakdown is for California. State employment taxes may differ in other states.
Social security and medicare taxes are NOT deducted from unemployment compensation payment.
Nope. It doesn't.
It's the other way around. Half the amount of your Social Security benefits are deducted from Illinois' unemployment benefits. Illinois is one of only three states that still applies a 50% offset to unemployment.
Social Security has no affect on Colorado's unemployment benefits. Only 4 other states have their unemployment offset by a portion of Social Security.
No. Neither state offsets unemployment benefits by the Social Security benefits.
They don't affect each other. Florida repealed its statutes allowing unemployment compensation to be offset (reduced) by Social Security benefits. If you qualify for both unemployment and Social Security, you will receive your full check under each program.
No. Receiving SS benefits will not affect your unemployment.
If you are already receiving social security and are fired can you receive unemployment benefits?
No. Alabama is not one of the 4 states that do offset unemployment with the Social Security.
If you were over paid by unemployment can that affect your social security benefits at all
yes
Yes.
I believe this answer is slightly incorrect -- "Yes, you can. Under "Non monetary Issues" > "Disqualifications" item (f) on page 5 of the Related Link below, Social Security benefits are excluded from the disqualifying chargeable benefits you receive." As I understand it, people who live in Louisiana and Illinois and receive social security payments and are eligible for unemployment benefits will have money deducted from their unemployment checks. In illinois, half a person's weekly social security payment is deducted from that person's weekly unemployment check. Illinois AARP has made repealing the social security offset law a priority.
No. Social Security is exempt from offsets to unemployment in North Carolina.