Unemployment benefits 101

9. Unemployment Benefits 101

The US government furnishes unemployment benefits as insurance to help those facing financial constraints from losing their jobs. However, there are different conditions under which the government facilitates these benefits. The authorities will examine your eligibility based on the guidelines set by the state government.

Since unemployment insurance is a federal and state program, the state can determine if a person qualifies for this financial aid. Here, we will walk you through unemployment benefits, who can apply, how much money you can get, how long you can receive this insurance and other benefits offered by the US government. Therefore, let's waste no more time and explore these specifications.

What is Unemployment Benefit?

The US government started providing unemployment insurance in 1932. However, the supreme court passed it as an act in 1937. It came after unemployment benefits became implemented across the US as part of the Social Security Act. Here, each state in the US has an unemployment benefits program. All of these programs have different guidelines and eligibility criteria. The government received funding for these programs from federal and state payroll taxes.

Employers have to provide these taxes under various conditions. It includes if an employer is providing $1500 per employee as their wage in any quarter. Other than that, if an employer has employees working at least a day in 20 weeks. It is under the calendar year. The government collects taxes from employers as part of the Federal Unemployment Tax Act (FUTA).

For employees, the government furnishes these benefits based on their wages and how long they have worked. However, it depends upon the state law as it is a joint initiative by the state and federal government as part of the US Department of Labor.

Who can Apply for Unemployment Benefits?

There are different conditions under which you become eligible for unemployment benefits in the US. Besides, these guidelines can vary from one state to the other. However, generally, you can apply for unemployment benefits if your company has terminated you for no fault of yours. Here, you have to meet the wage and work requirements decided by the state where you have been working previously.

Regarding wage requirements, the government states that you should have completed a base period in a company. Here, authorities often look into the first four quarters of the year. Along with that, your pay scale is yet another factor that will come into consideration while considering you for unemployment benefits in the US. Apart from this, there can be state-based requirements, and you can find this information from the CareerOneStop platform, which is a DOI website.

If you have worked in another state and the state of residence, provide your state access to this information. It is essential for them to cross-check and verify the information before providing you with unemployment benefits.

These are the basic guidelines associated with offering unemployment benefits in the US. However, they will consider if you are actively seeking employment while providing you with these insurances. Remember that the government facilitates them to support you while you are struggling. It is not a substitution for a job, and you could get penalized if you plan not to work while reaping the benefits of unemployment.

During the pandemic, the government started three other programs to help people facing unemployment in Canada, and they were:

1. Federal Pandemic Unemployment Program or FPUC

2. Pandemic Unemployment Program or PUA

3. Pandemic Emergency Unemployment Compensation Program or PEUC

However, these programs ended in September 2021 once the companies reopened and the situation became better. Previously, during the Great Recession, the US government offered unemployment benefits to its residents to help them cope with their financial constraints.

How Much Can You Get from Unemployment Benefits?

There is no specific or standard amount provided as part of unemployment benefits. It can depend upon the number of quarters you have worked and your earnings. Besides, each US state has a different base amount provided as unemployment insurance. Here, they would look at the expense of living in that location.

For instance, in Mississippi, the unemployment benefit offered was $235 in 2017. Whereas on the other hand, it is $783 in Massachusetts. You can find out more about this by visiting your concerned state portals for unemployment insurance or reaching out to them via a phone call or email.

However, during the pandemic, the government furnished $600 through FPUC and PUA programs. And later on, through PEUC, they gave $300 to the people.

Remember that the amount provided as part of unemployment benefits to you by the government comes under taxable income.

How Long Can I Get Unemployment Benefits?

Generally, you can gain unemployment benefits from the government for a duration of six months. Besides, during an economic crisis, you can gain an extension of 20 weeks. During the Great Recession, the government offered insurance benefits to US residents for 73 weeks.

As part of the pandemic relief program, the government gave FPUC and PUA from March 2020 to January 2021. After these programs ended, the government formed an extension of 13 weeks through PEUC. This ended on September 6, 2021.

What Other Benefits Can I Get?

Apart from unemployment insurance, there are other financial aids offered by the US government, and they are as follows:

 Stimulus Checks

A stimulus check is a way through which the government overcomes economic meltdowns. Here, the government furnishes relief and cash to Americans facing financial problems. Through this, the aim is to reduce the effects of issues like inflation, leading to an increase in the price of various essential goods.

 Paid Sick Leaves

You can gain paid sick leave if you are sick, or have another family member who is sick. Here, you become eligible for paid sick leaves.

 Student Loans

If you don't have the financial capabilities to fund your education, you can opt for a student loan. Here, you can get several benefits, including zero interest rates.