Unemployment insurance is funded through employer taxes, and the amount a business pays can rise when former workers collect benefits. Because of that, understanding eligibility rules is both a financial and administrative priority. People who resign on their own typically cannot receive benefits, so employers often document those departures carefully. Layoffs and most non‑misconduct terminations usually qualify, while cases involving misconduct require strong documentation because state agencies review them individually.

Temporary changes such as furloughs or reduced hours can make workers eligible for partial or short‑term support depending on state rules. Clear communication and accurate records help employers navigate these situations and avoid unnecessary disputes.