I'm trying to understand the scenario and answer a question about unemployment benefits. If an employee is in Virginia and his company is in California, from which state will he claim the unemployment benefits?

  • Which office is the employee being paid from? That's where withholding occurs. This gets reconciled at the end of the year when you do your taxes, since you will probably have to file both states' forms. – keshlam Jun 8 '16 at 22:09
  • Who will claim FUTA? Why would that person claim FUTA from a State? FUTA is a Federal tax imposed on employers. Your question doesn't make sense. – littleadv Jun 8 '16 at 22:34
  • Excuse FUTA is combination of both Federal and State if an individual went unemployed due to some reasons he is eligible to claim the Unemployment tax and it is the only part of state he is eligible to withdraw. To claim the FUTA he need to under go some procedure.....! – teja Jun 9 '16 at 15:32
  • The 'F' in FUTA is "federal" - So as @littleadv has pointed out, your question as asked literally makes no sense. But there is also state unemployment tax, which is related but separate. I guess you want your question to ask about that. I've made a corresponding edit to your question. – user32479 Jun 9 '16 at 16:55

This is not a simple question, unfortunately, and it may depend on more details than what you've provided here. I suggest that you check the specific information for the two state involved to see what they say:

The Virginia site has a handbook for employers that goes through the cases for "non-localized" employment (starting on page 4). It considers a lot of factors including the location of the employer's offices, the location of the employee's residence, and the location where the work is performed. Presumably California has similar guidance. The answer to the question from the employee's perspective should land on the same state as where the employer should have paid state unemployment tax. (Whether not the employer has been paying properly is a different question and not necessarily the employee's problem.)

  • You are right "IT is not a simple question"? But ................................... – teja Jun 10 '16 at 18:27

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