Base period wages
| Unemployment insurance |
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Base period wages are insured wages paid to a worker during a one-year (base) period that determine the unemployment insurance benefit amount a claimant can receive. In most states, the base period includes the first four of the last five completed quarters before the date a worker first applies for unemployment insurance.[1]
Background
Most states base unemployment insurance payment amounts on an individual's base period wages—the wages a worker earns in the first four of the last five completed quarters before the date a worker applies for benefits. States determine base period wages according to the following calendar quarters:[1]
- January 1- March 31
- April 1 - June 30
- July 1 - September 30
- October 1 - December 31
Under the system, if a worker files for unemployment during Q4 (between October 1 and December 31), most states would calculate base period wages on the worker's earnings from Q3 and Q4 of the previous year and Q1 and Q2 of the current year. If a claimant files during Q3, base period wages would come from Q2, Q3, and Q4 of the previous year and Q1 of the current year.
Base period wage issues (BPWI), in the context of unemployment insurance, refer to a failure of claimants or employers to accurately report base period earnings. Employers who improperly classify workers as independent contractors and claimants who fail to report a base period employer can also cause improper payments related to BPWI.[2]
BPWI was the sixth most common cause of unemployment insurance overpayments in 2024. BPWI accounted for about 2.9% of all the overpayments examined in the U.S. Department of Labor's (DOL) 2024 Benefit Accuracy Measurement report.[3]
The table below identifies the causes of unemployment insurance overpayments, according to DOL:
| 2024 unemployment benefits overpayments by cause | |||
|---|---|---|---|
| Cause | Overpayment rate | Fraud rate | Agency responsible rate |
| Work Search | 36.04% | 30.90% | 3.45% |
| Benefit Year Earnings | 23.78% | 38.68% | 15.87% |
| Separation Issues | 19.38% | 18.71% | 42.39% |
| Able+Available | 6.70% | 3.88% | 6.88% |
| ES Registration | 3.95% | 0.43% | 10.83% |
| Sev./Vac./SSI/Pension | 0.12% | 2.27% | 5.62% |
| Base Period Wage Iss. | 2.92% | 1.62% | 4.58% |
| Other Eligibility | 2.69% | 0.69% | 3.71% |
| Other Issues | 1.33% | 0.54% | 6.55% |
| Identity Fraud/Theft | 0.12% | 2.27% | $41,212,687 |
| Dependents Allowance | 0.09% | 0.01% | 0.12% |
| Total $ Overpaid by Rate | $4,716,661,038 | $1,818,866,413 | $940,604,565 |
See also
- Unemployment insurance
- Unemployment insurance fraud
- Base period wage issues (unemployment insurance)
- Unemployment filings during the coronavirus (COVID-19) pandemic, 2020-2021
- State government plans to end federal unemployment benefits related to the coronavirus (COVID-19) pandemic, 2021
External links
Footnotes
- ↑ 1.0 1.1 Arizona Department of Economic Security, "Unemployment Insurance Benefits Definitions - Base Period," accessed July 25, 2021
- ↑ U.S. Department of Labor, "Benefit Accuracy Measurement State Data Summary Improper Payment Information Act Performance Year 2024," accessed August 28, 2025
- ↑ U.S. Department of Labor, "Benefit Accuracy Measurement State Data Summary Improper Payment Information Act Performance Year 2024," accessed August 28, 2025
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