What is Supplemental Unemployment Benefits (SUB)?

Whether you're a beginner or an expert, you will find this Glossary useful.

Supplemental unemployment benefits refers to taxed benefits designed to provide additional income to terminated employees along with the state unemployment benefits. 

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Supplemental unemployment benefits definition (SUB)

Supplemental unemployment benefits refers to taxed benefits designed to provide additional income to terminated employees along with the state unemployment benefits. This types of benefits are usually found in collective bargaining agreements.

SUBs typically come into play when unemployment is due to training, illness or injury, temporary lay off etc.


Types of SUBs

1. Extended layoff benefits: provided during temporary layoff like a reduction in the number of workers as a cost-cutting measure.

2. Furlough benefits: provided when employees are made to work for lesser hours due to a reduction in force, payments which are not wages are provided as a part of SUB.


SUB fund types

1. The collective fund where employees collectively contribute to a common fund which is then used in these types of situations.

2. An individual fund where employees contribute to individual accounts from which that employee will take the benefits from.


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