Navigating Unemployment Benefits: What Every Displaced Worker Should Understand
In the wake of recent layoffs, it’s essential for affected employees to grasp the intricacies of applying for unemployment benefits promptly, advise experts.
Am I eligible?
The criteria for eligibility for unemployment benefits typically hinge on being laid off through no fault of your own, notes Michele Evermore, a senior fellow at The Century Foundation. Whether due to downsizing or similar reasons, the key is not to exclude yourself from consideration prematurely, as many do based on misconceptions.
“There’s a lot of mythology around who qualifies,” Evermore explains.
Surprisingly, some individuals may qualify even after resigning, she adds. Circumstances like lengthy commutes or spousal job relocations may render individuals eligible for benefits in certain states.
When can I apply?
Given potential delays in processing claims in certain states, early filing is advisable, Evermore suggests. Despite the typical one-week waiting period before benefit disbursement, initiating the process promptly is key.
Where do I apply?
Applications are typically submitted through state unemployment offices, either online or via phone.
What are the program requirements?
Maintaining eligibility for benefits necessitates both the ability to work and actively seeking new employment, Evermore clarifies. Various states employ different methods to ensure job search efforts, ranging from self-logged activity to regular reporting to state authorities.
“Online work search reporting is also an option in some states,” Evermore adds.
It’s essential to acquaint oneself with specific state requirements upon application.
Are unemployment benefits taxable?
Yes, asserts Evermore. Both federal and state taxes are applicable to unemployment benefits. Opting for tax withholding upon benefit initiation is advisable to prevent potential tax burdens down the line.
“I’d always take that option,” Evermore advises. “Long spells of unemployment could lead to significant tax liabilities.”
What is the typical weekly benefit?
In Q3 2022, the average weekly benefit stood around $385, varying significantly by state. For instance, Washington State saw benefits nearly reaching $600, while West Virginia’s averaged around $305 during that period.
Additional financial assistance options exist for those facing economic hardship, Evermore notes, including food stamps and other governmental aid programs.
How long can benefits be received?
The standard benefit duration is 26 weeks, albeit subject to state-specific variations. Recent adjustments in certain states, such as Missouri’s benefit duration reduction to eight weeks, underscore the need for awareness of local regulations.
Can I qualify for benefits again after receiving them during the pandemic?
It’s plausible, according to Evermore. Eligibility hinges on factors like the duration since the last period of joblessness and the extent of benefits previously received, potentially allowing for renewed qualification.
Will severance affect unemployment benefits?
In most cases, receipt of severance pay during a layoff may lead to a reduction in unemployment benefits for the corresponding period. However, the impact varies by state, with some states unaffected by severance packages, Evermore explains.