What Does Covered Employee Mean?
employee is a person who is eligible for unemployment insurance benefits from
the state and federal unemployment insurance programs in the event that they
become unemployed through no fault of their own. Employers contribute to unemployment
insurance tax relating to the covered employee.
WorkplaceTesting Explains Covered Employee
A covered employee is an employee who is eligible for unemployment benefits if certain conditions are met during and after job loss.
Companies must pay into the unemployment insurance plans through taxes for covered employees. The covered
employee's remuneration is used to determine the unemployment insurance tax
payable to the state. The employer is responsible for the payment of the
unemployment tax on behalf of the covered employee. The employer may also have to reimburse
the state for benefits claimed by a past covered employee.
who receive commission-only remuneration packages or are employed by religious organizations
are examples of individuals who do not fall under the state and federal unemployment