Why do employers pay the entire cost of unemployment benefits? Why doesn the employee contribute?
In a few states, employees do contribute a small share. However, during the formulation of the federal/state system, the consensus of opinion among the states was that this would lead to assertions that the employee has a vested right to the money. But, the intent was to make benefit entitlement contingent only upon certain conditions regarding employment and unemployment. If the employer bears the entire cost, he will more likely participate in the benefit entitlement process in order to control his costs and limit payment to the truly unemployed.
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