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Recession tips: Unemployment benefits in recession
Unemployment benefits programs provide temporary benefits for qualified individuals who
have been out of work through no fault of their own. And of course, this is of importance
for many recently laid off employees during the current recession. The information in this
page is intended to provide general guideline for those unfortunately unemployed due to the
current recession, which is projected to be the most server recession since the end of
World War II. Unemployment benefits is paid by employers and taxed from employees’
paycheck during the course of work. In most states, unemployed workers are eligible to
collect unemployment benefits if they earned a minimum amount of money and worked at
least a certain number of weeks. Recipients are registered with the State Unemployment
Office and must be able and available to work and actively seek new employment
opportunities.
In addition to providing compensation, these programs often provide other services such as
job-search and entrepreneurial help. Most of these programs are free of charge and are
highly recommended by many career counselors. Some state Job Service Offices also offer
assistance such as job listings, career counseling, resume and cover letter writing help, and
training.
Unemployment benefits usually can last for a maximum of 3-6 months, depending on the
state, and usually received several weeks after submitting the application depending on the
number of applications (during high unemployment rate periods, such as the current
situation, it may take longer).
The amount of unemployment compensations varies from state to state. But in general
applicants can receive approximately 50% of his/her weekly earnings, with a set cap
amount you can receive (e.g. in New York and California, the cap is $450). Unemployment
benefits are taxable income and must be reported on your Federal income tax return. Not all
states automatically withhold taxes from benefit checks as employers do during your
employment period. But some states give you the option to withhold the taxes. You can also
make quarterly tax payments on your own.
It is generally advised that you should apply for unemployment benefits right after being laid
off because the process often takes several weeks depending on the current unemployment
rate. The first week is a mandatory requirement waiting period for processing information
and making decision on your case. If by some reason you postpone the filing process, you
may be disqualified to receive any benefits for passed months. Filing for unemployment
benefits generally can be done over the phone, online or via mail. Once you filed for initial
claim and have been approved, all you have to do is to log in to your account each week
and apply for benefits. Your account will allow you to see the day of the check mailed and
your unemployment compensation balance. Also, note that your unemployment
compensation can be subject to reduction or discontinuance.
Unemployment eligibility requirements vary from state to state. Some have more flexible
requirements and allow bigger pool of applications. Some states allow for those unemployed
due to poor performance to receive unemployment benefits, others don’t. Those who
voluntarily quit their jobs and those who lost their jobs due to “willful misconduct,” where
employee knowingly acted in a way that would lead to his termination, are generally not
eligible for unemployment benefits. For details on the specifics of unemployment benefits in
your state, contact your local unemployment office.
Also, in some states, namely Delaware, Maine, Maryland, New Jersey, New York, Oregon
and Pennsylvania, for those who are starting their own business and wondering if they
qualify, there is a program called self-employed allowance that pays to unemployed workers
while they are working on their business plan. Self Employment Assistance programs are
also available in some localities that assist individuals along their new venture.
Unemployment is designed to be a temporary help, and it’s important that the beneficiaries
try to find a permanent job as soon as possible.
This summary is intended to provide a general understanding of unemployment benefits
during the current recession and some recession tips regarding applying for benefits. For
details on the specifics of unemployment benefits in your state and the taxation issues,
contact your local unemployment office.
Finally, as always, consult an objective professional advisor.
Unemployment benefits programs provide temporary benefits for qualified individuals who
have been out of work through no fault of their own. And of course, this is of importance
for many recently laid off employees during the current recession. The information in this
page is intended to provide general guideline for those unfortunately unemployed due to the
current recession, which is projected to be the most server recession since the end of
World War II. Unemployment benefits is paid by employers and taxed from employees’
paycheck during the course of work. In most states, unemployed workers are eligible to
collect unemployment benefits if they earned a minimum amount of money and worked at
least a certain number of weeks. Recipients are registered with the State Unemployment
Office and must be able and available to work and actively seek new employment
opportunities.
In addition to providing compensation, these programs often provide other services such as
job-search and entrepreneurial help. Most of these programs are free of charge and are
highly recommended by many career counselors. Some state Job Service Offices also offer
assistance such as job listings, career counseling, resume and cover letter writing help, and
training.
Unemployment benefits usually can last for a maximum of 3-6 months, depending on the
state, and usually received several weeks after submitting the application depending on the
number of applications (during high unemployment rate periods, such as the current
situation, it may take longer).
The amount of unemployment compensations varies from state to state. But in general
applicants can receive approximately 50% of his/her weekly earnings, with a set cap
amount you can receive (e.g. in New York and California, the cap is $450). Unemployment
benefits are taxable income and must be reported on your Federal income tax return. Not all
states automatically withhold taxes from benefit checks as employers do during your
employment period. But some states give you the option to withhold the taxes. You can also
make quarterly tax payments on your own.
It is generally advised that you should apply for unemployment benefits right after being laid
off because the process often takes several weeks depending on the current unemployment
rate. The first week is a mandatory requirement waiting period for processing information
and making decision on your case. If by some reason you postpone the filing process, you
may be disqualified to receive any benefits for passed months. Filing for unemployment
benefits generally can be done over the phone, online or via mail. Once you filed for initial
claim and have been approved, all you have to do is to log in to your account each week
and apply for benefits. Your account will allow you to see the day of the check mailed and
your unemployment compensation balance. Also, note that your unemployment
compensation can be subject to reduction or discontinuance.
Unemployment eligibility requirements vary from state to state. Some have more flexible
requirements and allow bigger pool of applications. Some states allow for those unemployed
due to poor performance to receive unemployment benefits, others don’t. Those who
voluntarily quit their jobs and those who lost their jobs due to “willful misconduct,” where
employee knowingly acted in a way that would lead to his termination, are generally not
eligible for unemployment benefits. For details on the specifics of unemployment benefits in
your state, contact your local unemployment office.
Also, in some states, namely Delaware, Maine, Maryland, New Jersey, New York, Oregon
and Pennsylvania, for those who are starting their own business and wondering if they
qualify, there is a program called self-employed allowance that pays to unemployed workers
while they are working on their business plan. Self Employment Assistance programs are
also available in some localities that assist individuals along their new venture.
Unemployment is designed to be a temporary help, and it’s important that the beneficiaries
try to find a permanent job as soon as possible.
This summary is intended to provide a general understanding of unemployment benefits
during the current recession and some recession tips regarding applying for benefits. For
details on the specifics of unemployment benefits in your state and the taxation issues,
contact your local unemployment office.
Finally, as always, consult an objective professional advisor.