How To Claim Unemployment Insurance

Unemployment rate has been on the rise world wide because the economy is in a pretty bad shape. With the recession going on, many companies are cutting jobs and holding back new employment until who knows when. 

According to the official unemployment data, for every 15 people you know, probably one of them has been through the nasty ordeal of been retrenched last year. Finding work in a bad market is very difficult. It will get worse everyday as more people are being laid off because many more companies are going to downsize or even bankrupt in the coming months. Is there any financial help available if you are unemployed?

Unemployment insurance is actually available for people who are retrenched or unemployed not due to their own fault.

unemployment-insurance

Why unemployment insurance?

Unemployment insurance program is a federal-state program jointly financed through federal and state employer payroll taxes. This program was implemented to help counter erratic economic cycles.

When the economy is good, more funds are contributed to the program through increased tax revenues while unemployment claim falls as fewer workers are unemployed. But during a recession, the tax revenue will fall and spending on unemployment claims rises as more workers lose their jobs.

The collection of more taxes during a growing economy creates a surplus of funds to be drawn upon during a recession. And during the recession, as more unemployment claims will be given, the additional funds are being put back into the economy to reduce the effect of earnings losses.

 

Who can apply?

Different states will have a different set of requirements for the unemployment claims. But in general, the following rules should apply:

1. Must be unemployed through no fault of your own

2. Must be able to work physically

3. Must be actively seeking for suitable work

4. Must meet the requirements for wages earned or time worked during an established period of time.

 

Where to apply?

The unemployment office available and is run by the individual state. You can visit the America Service Locator website for the complete list of the state unemployment insurance offices.

 

When I should apply?

You should file for your unemployment claims at your state agency as soon as you become unemployed. It generally takes two to three weeks after you file your claim to receive your first benefit check. Some States require a one-week waiting period; therefore, the second week claimed is the first week of payment, if you are otherwise eligible.

If your approval is delayed, keep filing weekly claims because you will not receive benefits for the weeks that you did not file a claim. If your application is approved they will pay the benefits in arrears.

 

How to apply?

File your claim with the state where you worked. If you now live in another state or if you worked in multiple states, the agency in the current state where you now live in can provide you the information about how to file your claim with other states. You can visit the agency by person, through the internet or by telephone. In some states it is mandatory to meet with a career assistance advisor.

 

How much can I claim?

The claims will be based on a percentage of your income over a period of 52 weeks up to your state’s claims limit. The national average claim limit is $300 per week.

 

How often do I receive the payment?

If you diligently file your claims weekly, you should receive the payment every week or biweekly depend on which state you live in. 

 

How long can I claim for unemployment benefits?

The maximum claim is 26 weeks in most states, but due to current economic crisis and mass retrenchment, an emergency unemployment compensation bill was passed to extend the unemployment benefits for certain individuals and certain states.

The basic extended benefits program provides up to 13 additional weeks of benefits when a state is experiencing high unemployment. Some states have also enacted a voluntary program to pay up to 7 additional weeks of the benefits during periods of extremely high unemployment.

Therefore, the maximum claim, inclusive of the extended benefits, for some individuals at a certain state is 46 weeks.

 

What do I need to take note?

1. Unemployment benefits are income taxable

2. Maintain a job search record to verify active job searches

3. You can do a part-time job and receive a pro-rated claim

3. Report your income from your part-time job to avoid penalty

4. You will receive your claims earlier by direct bank deposit than by check

 

I know how it is like being jobless, it totally sucks! So this post is dedicated to the people who are being laid off recently and are seeking any form of help to ride through the storm. If you know anyone who is being removed from his job due to the recession, kindly forward this article to that, he will be grateful for your kindness and concern.

This is an article from The Brandless Blog.

Last 5 posts by Rendell

January 6, 2009 · Filed Under Personal Finance

Comments

One Response to “How To Claim Unemployment Insurance”

  1. sesunonyknomsNo Gravatar on February 13th, 2010 11:12 am

    Excellent article. Respect the author.

    Reply - Quote

Leave a Reply