Unemployment Tax is paid by the employer and is collected by both the state and the federal government. Unemployment Tax rates vary from state to state. The federal government taxes a percentage on up to the first $7,000 of wages then a reduction % is charged after that if timely payment is made to the state. Many construction trade work is seasonal and being laid-off doesn’t necessarily mean you’re let go or not loyal to one company. Many construction trades and companies rely on unemployment to stay afloat during the offseason. A worker will still typically have to prove he is looking for other work before he is granted unemployment during the off season.