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Unemployment insurance: Eligibility
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| • Terms and definitions • Court cases • Unemployment insurance programs in the states • Reform proposals related to unemployment insurance • Reform activity in the states related to unemployment insurance • Index of articles about unemployment insurance |
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Unemployment insurance is a term that refers to a joint federal and state program that provides temporary monetary benefits to eligible laid-off workers who are actively seeking new employment. Qualifying individuals receive unemployment compensation as a percentage of their lost wages in the form of weekly cash benefits while they search for new employment.[1][2]
The federal government oversees the general administration of state unemployment insurance programs. The states control the specific features of their unemployment insurance programs, such as eligibility requirements and length of benefits.[2]
Although the word insurance is in the term, a few key differences distinguish unemployment insurance from private insurance plans such as home insurance, car insurance, or health insurance. In most states, employers—rather than individuals themselves—pay unemployment taxes that fund state unemployment insurance programs. When an individual loses their employment (and meets eligibility requirements), state-administered unemployment insurance programs provide temporary monetary benefits to the former employee. Unemployment insurance compensation is not intended to replace lost wages; it is designed to replace a portion of the individual's lost wages with the goal of providing financial support as an individual searches for a new job.[3]
This page examines unemployment insurance eligibility. For more information about unemployment insurance, click here.
Unemployment insurance: Eligibility
Eligibility criteria for unemployment insurance recipients vary by state. In general, recipients must have lost employment through no fault of their own. The unemployment insurance program does not cover individuals who voluntarily leave their positions, who are fired for just cause, or who are seeking to reenter the workforce after a voluntary exit. Nor do unemployment insurance programs generally cover first-time job seekers, students, self-employed individuals, gig workers, or undocumented workers.[1][4]
States also require that recipients meet certain work and wage thresholds. Unemployed workers in most states must have worked for a minimum amount of time or must have received a minimum amount of earnings from their employer (between $1,000 to $5,000 in 2019) in order to be eligible to receive benefits.[4]
States generally require individuals to perform the following tasks in order to maintain weekly eligibility, according to the U.S. Department of Labor:
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Recipients must report their unemployment insurance benefits as part of their gross income on their tax returns.[7]
See also
External links
Footnotes
- ↑ 1.0 1.1 The Wall Street Journal, "How Does Unemployment Work?" February 22, 2021
- ↑ 2.0 2.1 Employment Law Firms, "How Unemployment Works," accessed May 18, 2021
- ↑ Foundation for Government Accountability, "What is 'Unemployment Insurance?'" December 30, 2020
- ↑ 4.0 4.1 Brookings, "How does unemployment insurance work? And how is it changing during the coronavirus pandemic?" July 20, 2020
- ↑ United States Department of Labor, "Unemployment Insurance Fact Sheet," accessed May 18, 2021
- ↑ Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
- ↑ Internal Revenue Service, "Topic No. 418 Unemployment Compensation," accessed May 18, 2021
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