Collecting unemployment benefits

The unemployment insurance benefits do not only include financial compensation, but also entail assistance in finding employment, and subsidized training in order to qualify for a new job. The compensation varies from state to state according to their calculation methods.

These methods can be based on the maximum earnings from your three monthly earnings from the base period, or can entail the average of your total base period income, whilst other states compensate a percentage of your total earnings for the base period with a ceiling total. Most States calculate compensation based on the most recent 52 weeks, with a maximum amount. All of the States have a minimum amount that you must have earned to qualify for unemployment insurance benefits. The average weekly rate of compensation is only 35% of the weekly wage.

Payment period for unemployment insurance benefits

In 51 States payments are for a maximum 26 weeks, while both Washington State and Massachusetts pay for up to 30 weeks. Under certain circumstances, you are allowed to request an extension of payable benefits. This means that you can receive compensation after your 52 weeks benefit period (benefit year) has passed when you for instance applied for a part time position or a full time position during your benefit year, secured the job, but due to circumstances was laid off within a very a short period. You may then activate your claim again. In the case where you secure a part time position but it pays far less than your original weekly wage, you are entitled to collect compensation. The longer a person is without employment, the wider ranger of opportunities must be explored in order to receive payments.

Federal Extended Program for unemployment insurance benefits
In some States the total period for payment of benefits can be extended to assist persons who cannot find employment due to a severe shortage of jobs. It is called Fed-Ed or EB and may be activated in States where the unemployment rate is equal to or higher than a set percentage over a certain time period. This entitles you as claimant an additional 13 weeks for claims if your benefits are exhausted and you were unable to secure work during your initial claim period. The States must take reasonable steps to refer claimants to any job that provides wages higher than the unemployment insurance benefits payment together with any supplemental job, and where it falls within the claimant's skill range.

unemployment insurance benefits and Tax
It is taxable. You are required by the IRS to report all income including benefit payments received. You may request that a portion of your benefits get deducted for tax purposes.

Fraud Penalties Payable for False Information on the Claim Form
Any attempt to mislead or provide false information on your claimant form may lead to criminal prosecution. You are required to reimburse the State for payments made and the State may also lay claim on your property or possessions. You will lose the right to any further payments. The laws and punishment for unemployment insurance benefits fraud may differ in the various States.