How to Claim Unemployment Benefits Compensation per State

How to Claim Unemployment Benefits Compensation per State Losing your job is always a fear. Although the unemployment rate (3.6%) is at an all-time low since 1969, according to the Bureau of Labor Statistics, its not a guarantee your job is safe.The number of unemployed people is down 38% since the last U.S. recession ended in 2009. As of October 2019, there were nearly 6 million unemployed people in the United States. These people look to unemployment insurance to cover them until they can find work. While unemployment insurance isnt a permanent fix, it can help tide you over until you get another job.What Is Unemployment Insurance?Unemployment insurance is a federal-state program that credits its eligible members with part of their previous income. The program was established in 1935 by the Social Security Act, while Franklin D. Roosevelt was in office. Each states government operates its unemployment insurance program. However, the U.S. Department of Labor regulates the system.Since each state government is allowed to customize the progr am, things such as eligibility rules, how benefits are calculated, and the length of the benefit period vary by state. Before an unemployed person applies for unemployment benefits, they should find out if they qualify for their states program.Who Is Eligible for Unemployment Insurance?Although eligibility requirements can vary from state to state, generally, to be eligible for unemployment insurance, the individual must be unemployed at no fault of their own, able to work, and must have earned above a certain income level during a specific period before becoming unemployed.To lose a job at no fault of their own, the individual must have been laid-off or fired unfairly. If the individual quits or is fired for reasonable reasons, they will not be eligible for unemployment benefits in any state.What Is the Base Period and How Is It Figured?The specific period each state reviews for unemployment eligibility is known as the base period. The base period is calculated the same way in most states. The base period consists of the four earliest calendar quarters out of the last five full calendar quarters the person worked before applying for unemployment.Calendar quarters are as follows:January MarchApril JuneJuly SeptemberOctober DecemberFor example, if someone applies for unemployment during the first quarter (January March), their base period will be from October two years prior until September of the year directly before the year he applied. When someone applies for unemployment during the second quarter (April June), their base period will be from January until December of the year before he applied.If someone applies for unemployment during the third quarter (July September), their base period will be from April of the year before he applied until March of the year in which he applied. If someone applies for unemployment during the fourth quarter (October December), their base period will be from July of the previous year until June of the year in which he applied.For a quick reference to figure out a specific base period in 2020, check below.Base Periods-Unemployment EligibilityApplied during the first quarter in 2020 base period is October 2018 September 2019Applied during the second quarter in 2020 base period is January 2019 December 2019Applied during the third quarter in 2020 base period is April 2019 March 2020Applied during the fourth quarter in 2020 base period is July 2019 June 2020How Are Benefits Calculated?States calculate benefits differently. Depending on the state, benefits will be calculated by using the individuals quarter with the highest-earning or adding up the total earned during the base period. The result can help the state figure out eligibility, the payment amount, and how long the applicant is eligible for benefits. Also, some states take the number of dependents into account when calculating benefits.If the state uses the highest-earning quarter to calculate benefits, the total income will be div ided by 25 to determine the weekly benefit amount. However, states can set a maximum weekly benefit level, and if the result is higher than that, the individual receives the maximum limit instead.For example, in Texas, if during the highest-earning quarter, the applicant earned $10,000, their weekly benefit payment would be $400 ($10,000/25). As of 2019, Texas has a maximum weekly benefit of $507. Therefore, if the applicant earned $12,675 or more in their highest-earning quarter, he would receive the maximum weekly benefit.The national average unemployment weekly benefit is about $300. To be eligible for unemployment benefits in most states, the applicants total earnings during their base period must be at least 37 times their weekly benefit amount.People who receive unemployment benefits should keep in mind that they have to report any and all unemployment benefits as income when they file taxes.Maximum Benefits per StateStates are able to set the maximum benefit an eligible worke r can receive. The maximum will vary based on each states cost of living and other factors. Some states have a maximum benefit amount of nearly $800, while most have maximum benefits of around $400.As of 2019, the states with the highest maximum benefits are (in order from largest to smallest) Massachusetts, Washington, Minnesota, New Jersey, and Illinois. The states with the lowest maximums are (in order from largest to smallest) Tennessee, Alabama, Louisiana, Arizona, and Mississippi.The following represents the maximum benefit levels of each state in 2019 (in order from largest to smallest benefit):Massachusetts $795Texas $507 Idaho $405Washington $749Kentucky $502Indiana $390Minnesota $717Wyoming $489Virginia $387New Jersey $696Montana $487Alaska $370Illinois $648Kansas $474Wisconsin $363Maine $646Vermont $466Michigan $362Connecticut $631Arkansas $451South Dakota $352Hawaii $630California $450North Carolina $350Ohio $598New Mexico $442Delaware $330Colo rado $597New York $435Georgia $330North Dakota $595Maryland $430South Carolina $326Iowa $573Mississippi $235Missouri $320Rhode Island $566New Hampshire $427Florida $275Pennsylvania $561Nebraska $426Tennessee $275Utah $543District of Columbia $425Alabama $265Oregon $538West Virginia $424Louisiana $247Oklahoma $520Nevada $407Arizona $240Maximum Length of BenefitsIn addition to choosing the maximum weekly benefits, states also choose how long eligible members get to receive benefits.In most states, the maximum length of benefits is 26 weeks. However, it can range from 12 to 30 weeks. Eligibility will determine how long each person receives benefits.The maximum length of benefits for each state as of 2019 is as follows (in order from longest to shortest):Massachusetts 30Maine 26Texas 26Montana 28Minnesota 26Utah 26Alaska 26Mississippi 26Virginia 26Alabama 26North Dakota 26Vermont 26Arizona 26Nebraska 26Washington 26California 26New Hampshire 26Wi sconsin 26Colorado 26New Jersey 26West Virginia 26Connecticut 26New Mexico 26Wyoming 26District of Columbia 26Nevada 26Idaho 21Delaware 26New York 26Arkansas 20Hawaii 26Ohio 26Michigan 20Iowa 26Oklahoma 26South Carolina 20Illinois 26Oregon 26Kansas 16Indiana 26Pennsylvania 26Georgia 14Kentucky 26Rhode Island 26Missouri 13Louisiana 26South Dakota 26Florida 12Maryland 26Tennessee 26North Carolina 12Extended Unemployment BenefitsThe program known as Extended Benefits allows certain people about 13 to 20 weeks of unemployment benefits in addition to the states maximum. However, this program is only available at times when the states unemployment has increased dramatically. As of November 2019, there are no states currently offering the Extended Benefits program.Unemployment Rates by StateAs mentioned earlier, the national unemployment rate is the lowest it has been since 1969. In 1969, the national unemployment rate was 3.5%. Before 1969, there were onl y three years (1951-1953) that showed a lower unemployment rate than 2019.The state unemployment rates represent the percentage of unemployed workers in each states workforce. People who are considered part of the workforce are the employed and the unemployed looking for work. People who are not considered as part of the workforce and therefore dont affect the unemployment rate are people who arent actively looking for work, such as students, retirees, and stay-at-home parents.Although the national unemployment rate is currently 3.6%, each state has an unemployment rate specific to it. The current unemployment rates for each state are as follows (from lowest to highest):Vermont 2.2Florida 3.2Illinois 3.9North Dakota 2.5Indiana 3.2New York 4Utah 2.5Minnesota 3.2North Carolina 4Colorado 2.6New Jersey 3.2Michigan 4.1Iowa 2.6Oklahoma 3.3Nevada 4.1New Hampshire 2.6Wisconsin 3.3Oregon 4.1South Carolina 2.6Georgia 3.4Ohio 4.2Virginia 2.6Montana 3.4Pennsylvania 4.2Ha waii 2.7Tennessee 3.4Kentucky 4.3Alabama 2.8Texas 3.4Louisiana 4.5Maine 2.8Arkansas 3.5Washington 4.5Idaho 2.9Connecticut 3.6Arizona 4.8Massachusetts 2.9Maryland 3.6New Mexico 4.8South Dakota 3Rhode Island 3.6West Virginia 4.8Kansas 3.1Delaware 3.7District of Columbia 5.4Missouri 3.1Wyoming 3.8Mississippi 5.5Nebraska 3.1California 3.9Illinois 3.9Educational and Training Programs for the UnemployedOne requirement to qualify for unemployment benefits is that the person must be looking for work. States offer educational and training programs to the unemployed to increase their chances of getting hired. These programs vary from state to state and are usually low in cost or free.Some states, such as Delaware, Mississippi, New Hampshire, New York, and Oregon, offer a self-employment assistance program that helps the unemployed return to work by starting their own business.Health Insurance While UnemployedThe decreased income isnt the only thing unemployed people have to worry about. They may also have to find new health insurance. People who received their health insurance through their previous employer have a few options in deciding how to get health insurance.Recently unemployed people may be able to receive coverage through the Affordable Care Act, their spouses employer, or the Consolidated Omnibus Budget Reconciliation Act (COBRA).COBRA is a program that allows employer health coverage to continue after the employee loses their job. COBRA is a short-term solution, as people can only have it for up to 36 months. This program is also usually expensive, so people should research other ways to get health coverage as well.Generally, to qualify, the employer's health plan must be covered by COBRA, the loss of employment cant be caused by misconduct and several other factors that are dependent upon the employer and employee specifically. Ex-employees will need to talk with their previous employers Human Resources department to figure out if they qualify.How to Apply for Unemployment BenefitsAnyone can apply for unemployment benefits. Whether they get approved or not will depend on the states requirements. Each states application process for unemployment benefits can vary. However, this is generally how it works:To start the unemployment benefits application process, people should contact their states unemployment office. Its more efficient if people can determine their likelihood of approval before applying. By doing this, they can save time by not going through the application process if they figure out that they dont meet the base requirements.The next step will be to submit a claim. Most initial claims will require basic personal information as well as employment history. After the claim is submitted, applicants usually hear a decision within ten business days.Applicants who are approved for their states unemployment program will have to attend a meeting at the states Americas Job Center. At this meeting, a represe ntative will help the applicant get set up with workshops, job search, and other services that will assist the applicant in finding a job.The final step will be for the applicant to start looking for a job. Unemployment programs monitor how often their members search for jobs and the jobs they are offered. To maintain eligibility, workers have to include this information on their weekly unemployment benefits claim. Failure to submit weekly claims can result in benefits being suspended.People who are looking to learn their states unemployment benefits qualifications or to apply for benefits can find their states unemployment site linked below.Unemployment Sites by StateAlabamaKentuckyNorth DakotaAlaskaLouisianaOhioArizonaMaineOklahomaArkansasMarylandOregonCaliforniaMassachusettsPennsylvaniaColoradoMichiganRhode IslandConnecticutMinnesotaSouth CarolinaDelawareMississippiSouth DakotaDistrict of ColumbiaMissouriTennesseeFloridaMontanaTexasGeorgiaNebraskaUtahHawaiiNevadaVermontIdahoNew H ampshireVirginiaIllinoisNew JerseyWashingtonIndianaNew MexicoWest VirginiaIowaNew YorkWisconsinKansasNorth CarolinaWyomingDanielle K. Roberts is a Medicare insurance expert and co-founder atBoomer Benefits, where her team of experts help baby boomers with their Medicare decisions nationwide.