Supplemental Unemployment Benefits (SUB)

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

Supplemental unemployment benefits definition (SUB)

Supplemental Unemployment Benefits (SUB) are a form of additional benefit provided to unemployed workers in addition to the standard unemployment benefits they receive from the government. These benefits are typically provided by an employer or a union and are designed to supplement government unemployment benefits to help workers maintain a more stable income during periods of unemployment.

Types of SUBs

Layoff SUBs: These benefits are provided to employees who are laid off due to a reduction in the workforce, often in industries with cyclical employment patterns. They help bridge the gap between the employee’s regular income and the unemployment benefits they receive.

Seasonal SUBs: In industries that operate on a seasonal basis, such as agriculture or tourism, seasonal SUBs provide additional income during the off-season when employees might be temporarily laid off.

Short-Time or Work-Sharing SUBs: These benefits are for employees whose hours have been reduced, often as an alternative to layoffs. The SUBs supplement their income to compensate for the reduced working hours.

Training SUBs: Offered to employees who are enrolled in approved training programs during their period of unemployment. These SUBs support individuals seeking to improve their skills or retrain for new opportunities.

Illness or Injury SUBs: Provided when an employee is unable to work due to illness or injury. These are distinct from regular health insurance benefits and are specifically tied to the loss of income due to the inability to work.

SUBs for Terminated Employees: Some SUB plans provide benefits to employees who are terminated for reasons other than layoffs, such as job elimination or plant closures.

Trade-Related SUBs: These are for employees who lose their jobs due to the impact of international trade. This type of SUB is often linked to government programs that assist workers affected by trade agreements or global competition.

SUB fund types

There is the collective fund where employees collectively contribute to a common fund which is then used in these types of situations and an individual fund where employees contribute to individual accounts from which that employee will take the benefits.