As inflation continues to rise, many companies are forced to lay off employees. Fortunately, the United States government offers benefits and programs to support individuals who have lost their jobs and are struggling to make ends meet.
In this article, we will explore the Unemployment Insurance program, also known as Unemployment Benefits, and guide you on how to apply.
What Is Unemployment Insurance?
Unemployment Insurance is a federal and state-run program that pays weekly stipends to eligible individuals.
Eligible people are unemployed individuals who lost their jobs through no fault of their own. To be eligible, you must have been fired due to a shortage of jobs, not because you defaulted on your responsibilities. Unemployment Benefit does not apply to people who resign.
How Does Unemployment Insurance Work?
Unemployment Insurance programs differ per state. However, all programs across all states follow the same federal laws and are supervised by the United States Department of Labor.
Unemployment Insurance is usually funded by the Federal Unemployment Tax Act (FUTA) and other state taxes levied on employers. Sometimes, the government may provide for the individual from their previous employer’s UI account. There are also situations where the state government increases the employer’s future taxes.
Eligible individuals can receive weekly benefits for up to 26 weeks. Within these 26 weeks, they are expected to apply and get another job. In some cases, the 26 weeks may be extended. However, this will depend on the state’s policies and its unemployment situation at that time.
The amount you receive weekly depends on how much you earned while you were employed. It’s usually a percentage of your earnings over a 52-week period. But each state has a maximum amount it can pay.
Are You Eligible?
To qualify for unemployment benefits, you must first be unemployed through no fault of your own. Speaking plainly, it means you must not have resigned or done anything to warrant being laid off. In some states, the only recognized ground for losing your job is the unavailability of jobs.
Secondly, you must meet your state’s work and wage requirements. This is usually a time period you must have worked for. It’s also called “base period.”
Thirdly, you must actively seek another job and report any job offers you decline.
There are other state-specific requirements you will be expected to meet. You can find details of your state’s program here.
How Do You Apply?
Applying for Unemployment Benefits starts with filing a claim with the unemployment insurance agency where you were employed. If the state you live in now is different from where you worked, or you worked in multiple states, you can file a claim in the state you live in, and the unemployment insurance office will assist you with filing a claim in the other states.
When filing your claim, you’ll also be required to provide information about your former employment. Depending on the state, you can file for the benefit online, in person, or via the phone. You can find your state’s Unemployment Insurance Office on the U.S. Department of Labor Unemployment Insurance page.
After approval, you’ll be expected to file a weekly or biweekly report to stay eligible for the benefit. This report will detail any income you made during the week and the job offers you got or declined.
Approval of a claim usually takes two to three weeks after the application process is initiated.
Wrapping Up
Unemployment Insurance is the government’s way of helping recently fired individuals keep their heads above water while looking for another job. However, it’s only available to individuals laid off because of the unavailability of work.