Unemployment benefits is a joint federal-state program. It provides temporary benefit payments to employees that are fired without any reason or forced to quit. You are paid unemployment benefits for only a few weeks. These differ based on the state in which you reside until you find another job. Sometimes, it could be hard to find another job as several unemployed people have no work for a year or more. Based on these tough economic times, the federal government has passed several extensions that make unemployment benefits available for a longer period.
These unemployment benefits provide a partial replacement for lost wages. The amount that you receive would be based on what you had earned. States have different formulas to calculate benefit payments but all states would take your prior earnings into account. While others look at the employee’s earnings during the highest paid quarter or two quarters of the base period .
To qualify for unemployment benefits the state would have to examine the past wages requirements, the reason for unemployment, and availability to work.
States have an upper limit on the total weekly benefit amount. It means that there is a common formula to pay half of what the employee used to earn. In a way, this would be up to a cap that is tied to the average earnings in that state. So the employees with a higher wage would receive huge benefits checks, but it is still a percentage of what they used to earn. The amount that an employee would receive differs from each state. Certain states also provide additional benefit amounts to employees with dependents. For instance $25 or less would be provided per week in addition to the regular benefits.
You should know that unemployment benefits are taxable. It suggests that up to 10% of your benefit amount would be withheld to pay federal income taxes. If you earn an income while receiving benefits, they will reduce the number of benefits you receive. If you work temporarily, you must report those earnings to the state unemployment agency, and they will determine how much of the unemployment benefits would be reduced.
Ensure that you contact your state unemployment insurance department once you are unemployed. They will indicate how much you would expect to receive per week once you are found eligible for unemployment benefits.
When it comes to filing for unemployment, it could be difficult. Make sure that you have complete information about unemployment benefits including how to apply, eligibility requirements, weekly benefit amount, crucial phone numbers, and much more.
The formula and method to calculate benefits are very state-specific. About half of the states use the highest quarter method in which the calendar quarter in which your earnings are the highest is taken into consideration. In other states, your income throughout the base period is summed up to check whether or not you’re eligible.
Unemployment is computed and can range from one-half of what was your weekly pay at the time of the discharge up to your state’s maximum benefit. You will have to verify with your state’s unemployment office to see the highest payout for your state. For further details refer to the unemployment benefits article .
To calculate your weekly benefits amount , you should:
Usually, most states permit an individual to obtain unemployment for a maximum of 26 weeks or half the benefit year. A benefit year is a period when your claim is established, and it will remain open for one year (52 weeks).
A few states have standardized benefit duration, while most have different durations depending upon the worker. In a state with varied duration, the benefit year may probably include less than 26 payable weeks.
The calculation is done using this formula – 26 x WBA or 1/3 BPW. Generally, the smallest amount is considered. WBA is the Weekly Benefit Amount, so 26 x WBA would be the regular weekly program. 1/3 BPW refers to the Base Period Wages, so if a person did not succeed to earn more than three times the standard benefit amount, they will be suitable for fewer weeks of coverage.
You can calculate your potential benefits online. Your weekly benefit amount and the number of weeks of entitlement are based on the wages you were paid and the amount of time you worked during your base period. The weekly benefit amount is calculated by dividing the sum of the wages earned during the highest quarter of the base period by 26, rounded down to the next lower whole dollar. The result cannot exceed the utmost weekly benefit permitted by the rule. This is a state-specific parameter and is dependent on the state’s budget and unemployment rate.
The base period is the term used to describe the time frame used as the basis for deciding whether or not you will be monetarily eligible for unemployment.
If you are presently filing weekly claims for unemployment benefits, carry on filing your weekly claim if you are jobless or are working reduced hours. They will inform you by mail if you are eligible for the added benefits.
Usually, two programs will extend unemployment insurance (UI) benefits: Emergency Unemployment Compensation (EUC) and Extended Benefits (EB). It is beneficial for those that are out of work for a long period. The maximum benefits duration has increased from 26 to 99 weeks in some states.
To be eligible for EUC (Emergency Unemployment Compensation) benefits you must:
****The EUC (Emergency Unemployment Compensation) expired on January 1, 2014, and since has not been renewed by Congress***
To be eligible for Extended Benefits (EB), you must:
The information you need before filing a claim:
If You Are Not a United States Citizen
You must give a verification that you were legally eligible to work in your state and that you are presently eligible to begin a new job.
After you file your application for unemployment benefits, you must start filing your weekly claims. You require filing each week, even though you are:
You can file your weekly claim: