In brief
- Unemployment insurance allows you to temporarily receive a portion of your wages as a cash benefit while you search for a new job.
- Each state’s eligibility requirements vary. Typically, you must meet certain prior work and wage requirements and must be unemployed through no fault of your own.
- Unemployment is typically subject to federal income taxes and can change based on whether you get a part-time or temp job.
Millions of Americans have found themselves out of work during the coronavirus pandemic. If you are struggling to find work, you could look into whether you are eligible for unemployment insurance, which can provide you with extra money while you search for a job.
What is unemployment insurance?
The Federal-State Unemployment Insurance Program, as it is known, was created in 1935 during the Great Depression. Those who are eligible may temporarily receive a portion of their wages as a cash benefit while searching for work. The exact entitlement varies by state. Find out more information through your state’s unemployment agency.
Who is eligible for unemployment insurance?
Each state has its own eligibility guidelines, but according to the U.S. Department of Labor, you will likely qualify if:
- You are unemployed through “no fault of your own.” This means you are out of work for a reason out of your control, such as a layoff. If you voluntarily quit your job, you are unlikely to be eligible, although some states may consider your case if you resigned with “good cause,” such as due to unsafe working conditions. You might qualify if you were fired, so long as you weren’t terminated for “gross misconduct,” which usually includes illegal or unethical behavior such as theft or harassment. Contract workers aren’t typically eligible to apply for unemployment benefits. They can receive relief under the so-called Cares Act, which includes these workers, as well as people seeking part-time work and those who would typically be considered ineligible because they don’t have sufficient work history.
- You meet the work and wage requirements in your state. When determining eligibility, most states require that applicants have worked a certain amount of time in a position or received a minimum amount of earnings from their previous employer to receive benefits. While some states require applicants to have earned a minimum of $1,000 in the first four of the past five completed calendar quarters, others require a minimum of $5,000 over the same period, according to a working paper from the W.E. Upjohn Institute for Employment Research.
- You are willing to work and actively looking for a job. This means that, should you be offered a suitable job and you refuse it, your unemployment benefits could be terminated. Each state has its own…
Read More: How Does Unemployment Work? – WSJ