The idea with this is that the employer is holding back money that would otherwise be remitted as tax dollars, IE: helps with employer cash flow. Those funds th

The idea with this is that the employer is holding back money that would otherwise be remitted as tax dollars, IE: helps with employer cash flow. Those funds then become available to pay out as salary. So it’s a rob-Peter-to-pay-Paul scheme to hopefully keep the employer solvent just a little longer and thus keeping those employees from needing to file unemployment.