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New York employees may be required to pay 0.5 percent on the first $120 of weekly wages (i.e., not more than 60 cents a week); any additional costs are paid by employers. Employee contributions in Hawaii are limited to half the cost of providing benefits but not more than 0.5 percent of weekly earnings up to the annually computed taxable wage base. The balance is paid by the employer. In Puerto Rico both employers and employees pay 0.5 percent of the worker's wages up to $9,000.

FINANCING BENEFITS FOR DISABILITY DURING UNEMPLOYMENT -In Rhode Island all benefits are paid from the State fund with no distinction between disabilities beginning during employment and those beginning unemployment. In California, where contracting out is permitted, there is no distinction between the amount of benefits payable to the employed and the unemployed, but the latter are charged to a special account in the State fund whether the workers were covered by the State plan or a private plan when employed. Each voluntary plan pays 0.12 percent into the State fund to finance benefits to persons who are either unemployed or in noncovered work at the time their period of disability commences. In Puerto Rico private plans must finance some or all of the disability benefits payable to workers for periods of disability that begin during unemployment or employment in uninsured work.

The separate New Jersey program for disability during unemployment is financed principally by interest on employee contributions withdrawn from the unemployment trust fund. Additional costs of such benefits may be assessed against all employers, up to 0.1 percent of taxable wages.

Hawaii levied a temporary contribution rate of 0.2 percent on the taxable wages of subject employers from July to December 1969 in order to establish the Special Disability Fund from which benefits are paid during unemployment. Additional amounts will be assessed against insurance carriers and self-insured employers as needed.

In New York a temporary contribution from January 1 to July 1, 1950, of 0.1 percent on the first $60 weekly wages by both employers and employees (i.e., not more than 6 cents a week each) established the fund from which benefits first were paid for disability during unemployment. This fund has been maintained at $12 million (by statute) by interest earned by the fund, by certain fines and penalties, and when necessary, by an assessment against all carriers including the State fund.

ADMINISTRATIVE COSTS - Administrative costs under five programs are paid from the contributions; in Hawaii such costs are paid from general revenue. Under the terms of the SSA and the FUTA, employee contributions withdrawn from the unemployment trust fund are not available for payment of costs of administration. The Rhode Island law provides for crediting to the administration account 6 percent of the amounts currently collected, and in New Jersey 0.01 percent of taxable wages. In California and Puerto Rico necessary administrative expenses, as determined by the State director of finance (California), or the Secretary of Labor (Puerto Rico), are withdrawn from the disability fund and each private plan is assessed a share of the total amount expended for added administrative work arising out of the voluntary plans.

New Jersey employers covered by the State fund pay an extra assessment for the costs of maintaining separate accounts for experience-rating purposes. In New Jersey employers with private plans are assessed the additional administrative costs attributable to private plans in proportion to covered


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