Unemployment insurance doesn't work like you think it does, at least in the states I've run companies in.
He could be 100% liable for unemployment benefits made against his company in the form of increased benefit charges.
Here's a quote from Georgia's handbook:
"Experience rating is a system which relates employer taxes to the cost of providing unemployment benefits to its employees. Lower rates are earned by employers whose unemployment experience costs are less, and higher rates are assigned to employers whose experience indicates greater costs.
"Under experience rating, benefits paid are charged to the claimant's separating/most recent employer, provided the employer has paid wages of at least 10 times the claimant's
weekly benefit amount and the separation was under allowable
conditions as defined by the Employment Security Law.
The employer most directly related to the claimant's
unemployment will be charged for benefits paid and thus reflect a true experience rating. This system helps to maintain an adequate reserve fund from which future benefit payments will be made.
"No employer's account will be charged more than the amount of wages that employer paid the claimant and the employer will pay only for the period of unemployment attributable to the separation from his employ."
Employers directly pay for state unemployment benefits; it does not come from the public tax pool.
He could be 100% liable for unemployment benefits made against his company in the form of increased benefit charges.
Here's a quote from Georgia's handbook:
"Experience rating is a system which relates employer taxes to the cost of providing unemployment benefits to its employees. Lower rates are earned by employers whose unemployment experience costs are less, and higher rates are assigned to employers whose experience indicates greater costs.
"Under experience rating, benefits paid are charged to the claimant's separating/most recent employer, provided the employer has paid wages of at least 10 times the claimant's weekly benefit amount and the separation was under allowable conditions as defined by the Employment Security Law. The employer most directly related to the claimant's unemployment will be charged for benefits paid and thus reflect a true experience rating. This system helps to maintain an adequate reserve fund from which future benefit payments will be made.
"No employer's account will be charged more than the amount of wages that employer paid the claimant and the employer will pay only for the period of unemployment attributable to the separation from his employ."
Employers directly pay for state unemployment benefits; it does not come from the public tax pool.