Who pays for unemployment compensation

who pays for unemployment compensation

Employer FAQs

Oklahoma, www.OK.govHome Page

What is "Unemployment Benefit Compensation"?

The Oklahoma Employment Security Act provides that under certain conditions payments of money may be made to unemployed individuals from an unemployment compensation fund contributed to by employers subject to the Act.

Who pays the Unemployment Benefit Compensation Tax?

Oklahoma employers and nonprofit organizations (other than those described in Section 501 (c) (3) of the IRS Code) pay the tax if they employ one or more workers in each of twenty different calendar weeks during a calendar year or if they have a payroll of $1,500.00 in a calendar quarter or are liable under the Federal Unemployment Tax Act.

Nonprofit organizations as described in Section 501 (c) (3) of the IRS Code will be liable if they employ four or more workers in each of twenty different calendar weeks during a calendar year.

All state agencies, cities, towns, counties, public trusts or local school districts, including nonprofit elementary and secondary schools, also pay unemployment taxes.

Agricultural employers who have a total payroll of $20,000.00

in any calendar quarter during a calendar year or have ten or more employees in twenty different calendar weeks during a calendar year are required to pay this tax.

Domestic employers such as private homes, local college clubs or local chapters of college fraternities or sororities who pay $1,000.00 cash remuneration in any calendar quarter during a calendar year must also pay the tax.

What must an individual earn to qualify?

In Oklahoma, a claimant can qualify if, during his base period, he received wages from employers subject to the Oklahoma Employment Security Act amounting to: (1) not less than $1,500.00 and (2) one and one-half times the amount of wages during that quarter of the base period in which such wages were highest. However, any claimant with $20,100 or more of taxable base period wages is eligible even of these wages were all in one quarter.

What is a "Base Period"?

The base period is the first four of the last five completed calendar quarters immediately preceding the first day of a claimant's benefit year.

The following example illustrates a base period:

Source: www.ok.gov

Category: Bank

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