business owners can't get unemployement

Submitted by Anonymous (not verified) on Thu, 01/31/2013 - 10:11

Why small business owners can't seek unemployment benefits from the government? Is there any other way out?

Posted: 31 Jan 2013 11:43 Post Subject:

Any way out of what?

Persons may be eligible for UI benefits if their employer paid FUTA (aka PAYROLL) taxes on their wages. Since self-employed persons do not do this, they are not eligible for UI benefits.

I fail to understand why people believe the GOVERNMENT owes them a duty to provide unemployment benefits in the first place. They are often a disincentive to looking for work. "Why should I work if the government pays me for not working?"

We call that attitude a "morale hazard" in the insurance world.

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