How Do Unemployment Claims Work?

unemployment claim

As the coronavirus pandemic continues to impact our economy, many people are finding themselves facing unemployment. If you’re one of them, it’s important to understand how unemployment claims work so that you can get the benefits you need.

Receiving unemployment is a lifesaver for many people who lose employment for no fault. Many things can trigger a person to lose a job. A company may be forced to lay off some of the workforce, as well as any number of other reasons.

Fortunately, when things like this happen, unemployment is a safety net to provide financial support until you can find new employment. You can submit an unemployment claim to your local unemployment office if you lose your job. Your local office will help with the unemployment claim process. Effective unemployment claims management services can help unemployed people get the financial benefits they need.

What is an Unemployment Claim?

An unemployment claim is a request for cash compensation while you are unemployed and looking for work. Your local office takes your claim and submits it to your state government on your behalf. If your claim is approved, you receive temporary financial assistance while you’re unemployed. It should be noted that an unemployment claim is only valid if your loss of employment wasn’t a result of any wrongdoing on your part. In other words, a person who gets fired would be ineligible for unemployment compensation. Unemployment is designed to provide financial compensation for people who become unemployed involuntarily and of no fault of their own.

How do states acquire money for Unemployment Claims?

Every state collects money from employers to create an unemployment fund. The administrative fees associated with unemployment claims are paid by the federal government. When an unemployed person files a claim, it works like an application. The unemployed person submits an application to receive up to twenty-six weeks’ worth of unemployment cash benefits.

However, these claims must be submitted on an ongoing basis. This isn’t a one-time process. State employers pay an unemployment insurance tax which in turn funds unemployment cash benefits for unemployed people within the state. Also, unemployment is designed to replace income for W-2 employees, not subcontractors or freelancers. In other words, unemployment is designed for former employees who collected checks with taxes excluded.

How much unemployment can a person collect?

Unemployment income pays a portion of a person’s income. It typically doesn’t pay/replace the entire portion of a person’s income. There are various considerations that determine how much unemployment a person receives.

A person’s former unemployment wages are a consideration in determining how much a person receives. A person can file for unemployment in person. However, they also have the option of filing for unemployment online and via phone.

What information is needed to file an Unemployment Claim?

You must provide identification, your social security number, employment information for the company that you no longer work for, and contact information. Once you’ve filed an unemployment claim and been approved to receive unemployment benefits, you’ll need to file a claim weekly.

The date and year you file the claim are determining factors when it comes to how much money you’ll receive weekly. The date and year that you file make up the base period of your claim.

The date of your claim and your job will determine the maximum amount of compensation you receive. This information is key to determining the accurate amount of compensation you’re owed to prevent employers from chargebacks and other issues that can result from incorrect information.

Other Important Factors

You must show proof of your search for work in order to continue to receive unemployment benefits. Typically, your unemployment office informs you of the steps needed to show proof that you’re looking for a new job. Everyone who receives unemployment benefits is responsible for showing proof that they are looking for another job.