Article Review
HRM 599-Benefits

The article I have researched for this article review was written according to the New York Times was about “how a small business owners have problems with unemployment claims and one owner who was surprised when an unemployment claim came across her desk by an employee who had quit more than a year before (Mount, 2011)”. Her company who had hired the employee after the employee’s company had went out of business then that owner rehired the employee after his business became booming again then he went out of business which left that employee unemployed so the owner of the company was responsible for the unemployment claim. Since the owner’s account was put into deficit that threatened her unemployment insurance tax rate even though the employee had voluntarily left her company.
The owner felt that this claim shouldn’t be right and that she would be afraid to hire anyone else. Another employer unknowing of the law hired and then fired an employee without proper documentation leading to the employee obtaining unemployment benefits in which they learned their lesson and had no trouble since they filed the proper documentation. With the current economy in the condition it is in and at the unemployment rate at the time of the article at 9 percent which is really high, smaller businesses don’t understand how the unemployment insurance premiums are computed. With the system it varies by state to state but the owner’s should understand the more claims the more the company pays into the system. With how much the author of the site did research that the federal government charges the organizations a base rate of 0.6 percent of the first $7,000 of an employee’s wages each year.
This federal money that the government gets cover each of the state’s unemployment programs which are loan programs for the state’s that don’t have