What is the difference between state and federal unemployment benefits

The federal-state unemployment compensation program is a federal fund, but each state has its own unemployment program with its own qualification guidelines, benefit amounts, and benefit periods.

The state programs operate based on federal laws. These benefits can sometimes be referred to as unemployment. During times of mass lay-offs, an employer may bring in a liaison to help their employees navigate filing for unemployment. While each state has different requirements and methods, most states will allow claimants to file their initial claim online. They will also need to set up their payments to account for any tax liability they will incur while receiving benefits, and determine how they would like to receive their weekly payments.

Some states will allow for direct deposits, while other states may require a paper check be mailed to their residence. Each week claimants will need to file a new claim. There are a series of questions out-of-work individuals must answer before receiving benefits, including:. The first week of each new claim period is called the waiting week. This is a week in which no benefits are paid out.

An individual will experience one waiting week per year. A normal unemployment time frame is 26 weeks; however, congress can extend unemployment benefits for up to 73 weeks, with slight variations by state.

Initial claims are an employment report that measures the number of new jobless claims filed by individuals seeking to receive unemployment benefits. The report, published since , also shows how many unemployed individuals qualify for and are receiving benefits under the federal-state unemployment compensation program.

He has been an exemplary employee, but unfortunately, Money Bank Mortgage has decided that they are going to consolidate their offices and they close the branch that Kenny works at. Kenny is laid off. Since the job termination happened through no fault of his own, Kenny is eligible for unemployment compensation. Consider Kenny Jones again.

Except this time, Kenny has received several warnings from his bosses at Money Bank Mortgage about his constant tardiness. State UI is funded by a payroll tax on employers and is administered in partnership with the U. Department of Labor. The federal government typically pays for expansions and extensions of unemployment benefits during recessions and natural disasters, like during the current COVID pandemic.

This includes new entrants and reentrants to the workforce, long-term unemployed people who have exhausted their UI benefits and some part-time and low-income workers. The program expires July Program runs through December. Update Nov. Federally funded program under the CARES Act that provides 13 additional weeks of state unemployment insurance once a recipient has exhausted their state benefits typically after 26 weeks. Each state sets a minimum, maximum and average weekly unemployment insurance benefit.

Eligibility for state unemployment insurance benefits varies widely from state to state. To qualify in most cases, a worker has to have lost their job through no fault of their own — for instance, through a furlough or layoff, reduction in workforce, business closure or relocation, change in business conditions or job requirements, etc. You may have to meet work search requirements to continue receiving UI, which may include that you be physically able to work, ready and willing to accept a job, and actively searching for a job each week that you are claiming benefits.

However, in many cases, it is not enough to simply say that you meet all of these requirements. Most states require that you maintain a job search log in order to verify that you are actively seeking work.

During the coronavirus pandemic, you still must certify on a weekly basis that you remain eligible for UI benefits. In response to the coronavirus pandemic, some states have waived the work search requirements. If you are receiving PUA benefits, you may be required to follow up with the UI agency after you first apply in order to continue receiving benefits. Depending on the state, you may be required to submit additional documents about your employment and earnings, which may include submitting a tax return or pay stubs if you have them.

In many states, you can receive regular UI benefits for up to 26 weeks about 6 months. So, you may be able to receive 39 weeks of UI benefits in most states and up to 52 weeks in states where EB is available. To find out how many weeks of benefits are available in your state, click here. You may be able to receive PUA benefits for up to 39 weeks about 9 months through the end of The maximum UI benefit amount you can receive will vary by state.

Each state has different maximum and minimum benefit amounts and determines payments differently. In general, your UI payment amount will be based on the amount of your wages before you lost your job. If you qualify for UI, the agency will look at the wages you earned during four of those last five quarters to decide how much your benefits will be.

If you earned enough wages during four of the last five quarters, your unemployment amount will be based mostly on the highest-earning quarter in your base period. The more money you earned, the higher your weekly benefits. If you receive PUA benefits, you will receive the same weekly benefits that you would have received if you had qualified for regular UI. The calculation of your weekly benefits amount will follow the process in Question 9. At a minimum, your PUA benefits have to be equal to one-half of the average weekly-benefit amount in your state.

In most states, UI claim-filing is by phone or online. Because it is a new program, it took most states several weeks to start taking applications for PUA. The application process varies from state to state. In some states, you will have to fill out the same application used for regular state UI. In other states, there are special applications provided online or by mail that are required to file for PUA.

Normally, it takes about 2 to 3 weeks to receive your unemployment benefits, but it may take much longer depending on the state where you work and the circumstances surrounding your claim for benefits.

Some states require a one-week waiting period; in other words, you would receive your first payment for the second week of your unemployment claim. If the waiting week has been waived in your state, then you will receive your first payment for the first week of your unemployment claim. After you file for PUA, most states are requiring some follow-up information to verify the reason why you left work and your earnings. When the state agency receives the additional information from you, these states will calculate the correct amount of PUA your are entitled to receive and add to the weekly payments if necessary.

While it can take a long time to receive the PUA payment in many states, the law requires the state UI agency to pay you the full amount you were entitled to from the date that you were unemployed as far back as the first week of April. UI or PUA benefits are typically paid by a check mailed to you or funds placed onto a debit card that is provided to you.

If you have a bank account, direct deposit may be the preferred method for you, because it avoids fees associated with receiving your UI or PUA benefits by prepaid card. But if your employer has not taken the necessary health and safety precautions to protect you and your co-workers against COVID, or if you are an older worker or someone who is immunocompromised for example, you have diabetes, heart disease, or asthma , you may be able to refuse the offer to return to work and continue to receive UI or PUA.

The state unemployment agency will make the final decision, and it will take into account whether you first contacted the employer to explain your concerns and made a reasonable effort to address the situation with the employer.

If your application for UI benefits was denied or you were rejected from the UI system while applying, especially if you earned any W-2 wages, you should file an appeal. Check with your state agency for more information.