What you should know about unemployment compensation

With the economy still in trouble the job market is also tight and millions of Americans are finding themselves out of work.  Here are a few points related to unemployment compensation that everyone should know.

Qualifications for unemployment benefits

•  To qualify for unemployment benefits you must have been working previously.  Unemployment benefits vary by state but are typically calculated based on the last year or two of wages earned.  So, if you weren’t working, you won’t get benefits.  Also important to note, if you work “under the table” or if you are “self-employed” you don’t qualify for benefits either.
• You can’t quit.  Only those who are involuntarily terminated from their employer, typically due to a reduction in work force, qualify for benefits.  If you quit your job or were fired for “cause” then you don’t qualify.  Cause means you did something wrong.  Even if you were fired for cause you can still apply since it’s typically hard for a company to prove the cause.
• If you qualify for unemployment, you can unqualify yourself by doing any of the following:
• Not actively pursuing a new job (applying, interviewing for jobs, etc–you have to be trying to get a new job)
• Turning down a job offer.  If you get offered a job, even a lower paying one, and you turn it down, say goodbye to benefits.
• Starting business.  If you start or operate a business, even one that isn’t making much or any money, you don’t qualify.
• Go to school.  If you decide to go back to school or if you’re a full-time student you don’t qualify for benefits.

Tips and tricks for filing claims for unemployment benefits

• If you think you qualify and you are denied, try talking to the unemployment office for advice and then file an appeal.
• File your claim immediately after getting laid off, unless you’re also collecting workers compensation benefits.
• Be honest in your application.  If you lie, you will get caught and you could face criminal charges.
• Keep your W-2s.  Just in case you run into trouble it will be good to have these on file to help your case.
• Don’t forget to complete your weekly updates.  Most state require you to complete a weekly certification to receive compensation–so don’t forget.
• Sign up for direct deposit.  It’s safer, and you’ll get your benefits sooner.

Hopefully you never have to use these tips, but if you do find yourself in the unfortunate position of being downsized, you’ll know how to handle unemployment insurance.

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