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Patrick, Esq.
Patrick, Esq., Lawyer
Category: California Employment Law
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Experience:  Significant experience in all areas of employment law.
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Im a small business in ca. I need an extra employee for 2

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I'm a small business in ca. I need an extra employee for 2 months, three at the most. How will that effect me with unemployment ins.?
Good morning and thank you for entrusting me to answer your question. I will do everything I can to assist you.

In order to answer your question, it is first necessary to explain the criteria for unemployment benefits eligibility. In general, an individual will be eligible to receive benefits provided that they have received enough wages during the base period to establish a claim (either $1300 in one quarter of their "base period," or at least $900 in their highest quarter and total base period earnings of 1.25 times their high quarter earnings), they are physically able and available to immediately accept work, actively seeking work, and unemployed through no fault of their own.

Though it may seem counterintuitive, there is no requirement that employment be of an open-ended duration, nor for a minimum lenght of time in ordetr to be eligibile. Thus, even seasonal employees hired for one or two months, knowing full well that their job will end after that point in time, will be eligible provided they satisfy the criteria enumerated above.

When an employee makes a claim for unemployment benefits, it affects the unemployment tax rate of the employer. The tax rates range from 3.4-6.2% on the first $7,000 of wages paid. The precise tax rate applied is determined by the "experience rating" of the employer, which is a complex algorythm that takes into account the number and duration of claims, the amouint paid out versus paid into the system, and the total number of company employees.

All of this is to say that termination of even fixed duration employment such as you describe above would typically impact an employer's unemployment insurance rate, though the precise increase is difficult to determine. However, with only one other employee, a percentage increase on your insurance rate would would only affect the first $7,000 of wages paid to your only other employee. This increase is likely to be extremely small. Even if we assume an increase from the lowest to highest rate, which I don't even forsee as possible, the dollar increase an employer in your circumstance would see on your unemployment insurance rate would be less than $200. Likely it would be much less than that.

Please do not hesitate to let me know if you have any questions or concerns regarding the above and I will be more than happy to assist you further.

If you do not require any further assistance, please be so kind as to provide a positive rating of my service so that I may receive credit for assisting you.

Very best wishes to you and thank you so much for coming to Just Answer.
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