One thought on “Do Supplemental Unemployment Benefits plans have to be approved by the state?

  1. Arti says:

    The state may also have other requirements for SUB plans, which include regarding eligibility and payments. In a few states, employers cannot implement a SUB plan without pre-approval from the state unemployment compensation agency. Generally, the discharged employee must be unemployed and eligible for state unemployment benefits in order to receive payments through a SUB plan. SUB plans pay the difference between the discharged employee’s state unemployment benefits and their regular wages before the layoff. SUB plans work by filling the gap between the discharged employee’s state unemployment compensation and their regular wages prior to the separation. Payments made through a SUB plan are excluded from Social Security and Medicare taxes, plus federal and state unemployment taxes if the legal requirements are satisfied. Payments made through a SUB plan are excluded from Social Security and Medicare taxes, plus federal and state unemployment taxes if the legal

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