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The first thing all these people do the day they are laid off is file for unemployment (justifiably). So this passes all the costs onto the states. I am wonde

• counterpointer 13y ago
  The state governments will get the money back when the federal workers get back pay. Contractors are a different issue though.
• Amadou 13y ago
  The first thing all these people do the day they are laid off is file for unemployment (justifiably). So this passes all the costs onto the states. Unemployment insurance is primarily paid for by payroll taxes that go into a dedicated fund. That probably doesn't apply when the federal government decrees an extension to unemployment benefits, but the first 180 days or so come from that dedicated fund. My understanding is that the payroll tax varies based on the historical rate of lay-offs. So a company that regularly lays people off (say a hollywood production company that lays people off at the end of every movie project) will have a higher payroll tax than a company with much better employment continuity. I could be wrong, that's just what I've been told and I have not dug into the details, although I did marry a woman who works in movie production.