Final answer:
Supplemental unemployment benefits (SUB) are not federal payments; they are part of a state-run unemployment insurance system funded by employer taxes and managed at the state level, providing temporary financial assistance to unemployed workers.
Step-by-step explanation:
The statement that supplemental unemployment benefits (SUB) are payments made by the federal government to unemployed workers during a layoff is false. Unemployment insurance is a state-run system, mandated under Title III, where employers pay into a state fund.
This insurance provides monetary benefits to workers who have lost their jobs and are unable to find new employment, generally for a period of up to six months. The system aims to somewhat mitigate financial hardship during periods of unemployment, with average benefits amounting to roughly one-third of the workers’ previous earnings. However, the level of benefits can vary across states.
The funding for unemployment insurance is derived from a federal tax collected from employers on the first $7,000 in wages paid to each worker, although this base limit can be higher in certain states. Generally, the majority of states limit the duration of these benefits to 26 weeks, with possible extensions during high unemployment times.