Unemployment insurance

Scope

Employees must be determined to be unemployed through no fault of their own (determined under State law) and meet other eligibility requirements of State law. Employees must meet the State requirements for wages earned or time worked during an established (one year) period of time referred to as a “base period.” (In most States, this is usually the first four out of the last five completed calendar quarters prior to the time that your claim is filed.)

Regulatory citations

• None

Key definitions

• None

Summary of requirements

Federal-state UI. The Federal-State Unemployment Insurance Program provides unemployment benefits to eligible workers who are unemployed through no fault of their own (as determined under state law) and meet other eligibility requirements of state law.

• Unemployment insurance payments (benefits) are intended to provide temporary financial assistance to unemployed workers who meet the requirements of State law.
• Each State administers a separate unemployment insurance program within guidelines established by Federal law.
• Eligibility for unemployment insurance, benefit amounts and the length of time benefits are available are determined by the State law under which unemployment insurance claims are established.
• In the majority of States, benefit funding is based solely on a tax imposed on employers. (Three (3) States require minimal employee contributions.)

Benefits.

• In general, benefits are based on a percentage of an individual’s earnings over a recent 52-week period - up to a State maximum amount.
• Benefits can be paid for a maximum of 26 weeks in most States.
• Additional weeks of benefits may be available during times of high unemployment. Some States provide additional benefits for specific purposes.
• Benefits are subject to Federal income taxes and must be reported on the employee’s Federal income tax return. You may elect to have the tax withheld by the State Unemployment Insurance agency.

Extended benefits. Extended Benefits are available to workers who have exhausted regular unemployment insurance benefits during periods of high unemployment. 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 (20 weeks maximum) of Extended Benefits during periods of extremely high unemployment.

• Extended Benefits may start after an individual exhausts other unemployment insurance benefits (not including Disaster Unemployment Assistance or Trade Readjustment Allowances).
• Not everyone who qualified for regular benefits qualifies for Extended Benefits. The State agency will advise individuals of their eligibility for Extended Benefits.
• The weekly benefit amount of Extended Benefits is the same as the individual received for regular unemployment compensation. The total amount of Extended Benefits that an individual could receive may be fewer than 13 weeks (or fewer than 20 weeks).
• When a State begins an Extended Benefit period, it notifies those who have received all of their regular benefits that they may be eligible for Extended Benefits.
• If a particular State’s unemployment is high, individuals should contact the State Unemployment Insurance agency to ask whether Extended Benefits are available.