States are required to deny unemployment compensation benefits in certain situations.
Unemployment laws exist at the state and federal levels of government. States that have their own unemployment laws can provide a benefit that exceeds the requirements of federal law. The federal unemployment insurance system was created by the Social Security Act of 1935. The Federal Unemployment Tax Act is another federal law that requires most employers in all states to pay federal and state unemployment taxes. Laws also permit states to deny unemployment compensation in certain situations.
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