So where do people get the impression that unemployment insurance is paid by employees?
Worker advocates and economists generally regard the tax as indirectly being paid by employees. It's believed that if employers didn't have to pay the tax, they would pass along the savings to employees in higher wages.
"For workers this is an entitlement," said Andrew Stettner, deputy director of the New York-based National Employment Law Project, which is an advocacy organization for employment rights of lower-wage workers. "It is their right to collect the benefit."
Certainly the need for unemployment insurance is great.
"The unemployment rate will probably continue to rise into the second half of next year and peak above 10 percent," Douglas Elmendorf, director of the Congressional Budget Office, testified before the House Budget Committee. "Economic growth over time will ultimately bring the unemployment rate back down to the neighborhood of 5 percent seen before this downturn began, but that process is likely to take several years."
While we wait for the economy to improve, people out of work will need financial help. The unemployment insurance pool is there to provide some funds although, in truth, it's a small amount. Unemployment benefits vary, depending on where you live. The average is $305 a week, according to Stettner.
The reality is this debate -- to take or not take unemployment insurance -- is moot for many who have lost their jobs and are eligible for benefits.
"Most people don't have the luxury of not taking it," Stettner said.
Whether you decide to take the money or not, it's wrong to think it's just your money. The crushing demand for unemployment benefits across the country has put a strain on state unemployment insurance pools. When states run out of money, they have to borrow from the federal government. As of July 31, 17 states had to borrow from the federal government to cover the basic six months of unemployment insurance benefits, Stettner said. By next spring, it's estimated that more than half the states will have borrowed from Uncle Sam.
The couple who chose to rely on their savings was not being reckless. They were being selfless. Please, apply for unemployment insurance if you need it, or if you're concerned about depleting your savings while you look for work. But it's also important to appreciate and not be arrogant about the cost of this help.