Unemployment Insurance
Unemployment insurance is a program that allows funds that employers pay in to be accumulated, then disbursed to those who are unemployed if the separation was not due to the employee being at fault. It is a Federally mandated program, under the U.S. Department of Labor Employment and Training Administration. Unemployment insurance can be applied for when a person has been laid off, hours reduced, or the business closes. All of these situations are beyond the employee’s control. The unemployment insurance allows the employee to have some income while searching for new employment.
The amount of unemployment insurance a person receives is based on their earnings over the previous year. The percentage they receive is different in every state. You can choose to have taxes taken out of your unemployment insurance payments, or choose to get the full amount. Generally unemployment insurance benefits are sent out on a weekly basis.
To receive unemployment insurance payments, you must file a claim in the state of employment. This can be done at a local Unemployment office, Workforce Center, or even online in most states. You will need to provide information including social security number and your work history. Your claim will then be processed. If it is approved, payments will be backdated to the date you filed.
If your claim for unemployment insurance is denied, you will be notified by mail. You can choose to file an appeal if you don’t agree with the decision. This appeal can be done over the phone. You may wish to file the appeal with your local unemployment office. They can help you process it correctly as well as come to the phone hearing with you.
To continue receiving unemployment insurance benefits, you must comply with the requirements ongoing. You must continue to look for work. In some cases, you have to submit a detailed log of who you contacted for employment and when. You may be required to make a certain number of contacts each week or each month. You can continue to receive unemployment insurance benefits until the specific dollar amount it has been determined you can receive has been reached or until your find other employment. Which ever happens first.
There are exceptions to this. Federal programs and state programs allow for an extension of unemployment insurance benefits in areas where there unemployment rate is very high. This allows people to continue having some spending power. The President may extend unemployment insurance benefits for victims of a disaster area while rebuilding is taking place. Also, the Federal government offers an extension if workers find themselves unemployed due to U.S. Trade Policies.
