Laid off 101

To call unemployment benefits the ‘dole’ - or welfare - is a little unfair.  Although it may feel strange to have the government write your paycheck every week, unemployment should not be confused with a handout from the Man.  In fact, unemployment can be best compared to an insurance program that you pay into, and hopefully never have to redeem.

What is unemployment

Unemployment insurance is a program jointly financed through federal and state employer payroll taxes.  Although the policies change by state, employers are required to pay a portion of your wage into a government run pool.  These funds are held in the public trust, and paid to certain individuals after they lose their jobs. 

Applying for unemployment

In general, a worker is able to claim unemployment benefits if he or she is without a job through no fault of his or her own.  This includes individuals who are laid off due to downsizing, or people who are unable to perform the duties of their job.  Individuals who are fired for gross misconduct – or people who quit – are not eligible, however you can claim benefits if you are laid off for ‘not being a match.’  In order to claim benefits, an individual must submit an application to his or her state unemployment office.  This office will then verify they left their prior position on the right terms, and determine how much the claimant will receive based on the duration of their employment and their quarterly income. 

Receiving unemploument payments

Following your application, you will begin a waiting period (typically one week), in which the government verifies the information you provided is true.  Following that week, you will begin to receive regular checks, or in some cases direct deposits into your account.  However, unemployment benefits are by no means automatic.  It is incumbent on the individual who was laid off to apply, and people are required to certify their claim online, over the phone, or in person every one to two weeks.  This certification includes confirming that you are ready to work and seeking employment, and checks that you have not returned to a full time job.  You may also be asked to show up at the unemployment office on occasion to verify that you are seeking employment, and to go over potential job leads.

How much

Although it varies by state, unemployment is never meant to be more than a sustaining income, and in many cases is far below the amount one would need to survive.  In New York State for example, benefits max out at $405 per week before taxes – half the average weekly wage statewide.  In addition, benefits are typically allowed for a maximum of 26 weeks, although economic conditions may trigger an extended benefits program.  Benefits can also be reduced if an individual works part time, typically by ¼ for every day that they are employed.

Overall, collecting unemployment is probably not something to look forward to, but the benefits of an extra few hundred dollars per month are substantial while seeking a job.  Although the programs do not replace your old income, they are an important supplement in the period between jobs, and the process is relatively pain free. 

To learn more about unemployment benefits in your area, speak with your state’s department of labor. You can also click here to go to a very helpful page which provides links to each state’s department of labor.

^{Image by: Khalil Shah}