If a state does not participate ( or is not certified by the Department of Labor as meeting Federal requirements ) : ( i ) the Federal unemployment tax is levied within the state at its maximum rate , ( ii ) the system does not pay any unemployment compensation benefits within the state , and ( iii ) the Federal Government provides no grants to state governments to pay for the costs of administration .
The system does not pay any unemployment compensation benefits within the state if one does not file for it .