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Where Do Unemployment Benefits Come From: Paying Taxes?

By Edited Nov 13, 2013 0 0

Where Do Unemployment Benefits Come From: Paying Taxes?

When you are employed, you might think that it is the end of the world. This is even more so if you have a family to take care of. For some people, it can be very difficult to get back into the labor market when they have been working for a company for such a long time. Another thing that might make it very difficult is that some people fall into depression. After the Second World War, most countries affected by the events decided to put in place a system that will make it easier for those out of work to receive unemployment benefits. Where do unemployment benefits come from?

If you're paying taxes, that is basically where the money is taken from. Some people who feel that the state government owes them a living tend to think that unemployment benefits are equal to receiving free money. In some countries, if you resign from your job, you will not be entitled to unemployment payouts. This is basically done to discourage people from falling into the thinking that they can live on free money given out by the states.

In most cases, unemployment benefits applications can be a little annoying to fill out. That said, if you have proof that you were laid off or that your contract came to an end, you will be entitled to a percentage of your previous income. Another thing to be aware of when thinking about applying for unemployment assistance is, you will not be giving free money for a lifetime. The longer you've been at your job, the longer your financial assistance will be. The money you will be getting from the state is designed to help you get back on your feet and find work. Some countries will require that anyone seeking out of financial assistance after losing his or her job must show proof of actively seeking work.

It is very important to make good use of the time you are receiving unemployment benefits to find another job. You don't have to fall into the trap of looking for work in the same line of job you did previously. At times, it is best to think out of the box and redirect your career by either going for unemployment training courses, or using and other skills you already have.

There are those who feel that unemployment benefits should also be axed. They reason that it foments laziness and encourages people to stop looking for work. This is true to a certain extent but the reality is totally different. Those who have worked all their lives will definitely like to continue doing so. It can be quite traumatizing for them to lose their job after so many years of getting up and making a living. There are those who take advantage of the benefits of financial aid offered by state government, but a higher percentage actually does require the assistance.

Where do unemployment benefits come from? It can be safely said that you are contributing into a fund that is later distributed to those who require assistance. You might be against the idea or you might think it is a good initiative, but the reality is that a lot of people benefit from the scheme.



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