Unemployment benefit payments are made to workers (claimants) who are temporarily unemployed through no fault of their own and attempting to re-enter the labor force. As an employer, your Arizona unemployment taxes pay the entire cost of unemployment benefits paid. By law, unemployment taxes cannot be withheld from the wages you pay workers.
Since it is your taxes that are used to pay benefits to your former workers, it is to your advantage to become familiar with the benefit provisions of the Unemployment Insurance program.
Before an individual can receive unemployment benefit payments, several basic requirements must be met:
- The worker must show a prior attachment to the labor force.
Individuals who have recently entered the labor force will not qualify.
- The worker must not have caused his/her unemployment.
Benefits are paid only to workers who are unemployed through no fault of their own.
- The worker must maintain an attachment to the labor force while he/she is collecting benefits.
- Benefits are payable only to individuals who are actively seeking work.