The Unemployment Insurance Trust Fund consists of state-collected payroll tax dollars from employers. Employers pay unemployment insurance tax according to the number of workers they employ. For each dollar paid, they receive up to a 90 percent credit against their federal tax (Social Security Administration, 2008). Because of this tax inducement, all states willingly comply with the program. Although every state participates in the Unemployment Insurance program, the spe-cifics of the program vary widely from state to state.
Generally, eligibility is based on the extent of recent employment, willingness and ability to accept new employment, and involuntary termination from prior em-ployment. Benefits are provided as a right and do not require a means test. Unem-ployment coverage provides a percentage of previous earnings for up to a maximum of 26 weeks in most states. In 2006, the average weekly benefit was $277 for an average of 15.2 weeks (Social Security Administration, 2008).