When out of work, fear of the unknown can be overwhelming. If you live and work in the United States, you should know that unlike other welfare programs, unemployment benefits are calculated as a percentage of your past salary. To lighten the mental burden during this difficult time, it may be a good idea to estimate the size of your unemployment benefits before they are paid to you for the first time, so that you can prepare yourself to make an appropriate budget. Therefore, if you want to calculate the unemployment benefit you are entitled to, read the first step to get started.
Steps
Part 1 of 2: Estimate Your Benefits
Step 1. For a definitive answer, look for the laws and regulations governing unemployment in the state where you live
In fact, each state has its own program implemented in collaboration with the federal government. The rules for calculating unemployment benefits and the conditions for applying for them vary according to the laws of the state where you live. Therefore, the steps described in this section may not apply to all of the United States. If in doubt, consult the website of the employment agency for your state for information about you.
For the purposes of this article, we will make an example calculation of unemployment benefits according to the regulations in California and in Texas, the two most populous states, to demonstrate some of the subtle differences that may exist between different states on this matter.
Step 2. Find the information you need to calculate your weekly deliveries
As noted earlier, the Weekly Benefit Amount (WBA) is calculated as a percentage of the income you earned before you lost your job. Typically, the income you will use to make this calculation is based on what you have earned during the first four of the last five working quarters. This is called "base period". To calculate the WBA, you need to know how much you have worked (in terms of hours) and the income you have made during each quarter of the base period. If you've kept your old payslips, they can be indispensable in this situation. If not, you will need to contact your old employer to get the information you need.
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The solar year is divided into four quarters (or "quarters"), each of which is made up of three months. The four quarters are January March (Q1), April-June (Q2), July September (Q3) and October December (Q4). Usually, the income level you will use to calculate the WBA is based on what you have earned during the first four of the last five quarters of work.
For example, if you apply for unemployment in April (Q2, Q2), you will use your income from last year's Q4, Q3, Q2 and Q1. Do not use income from Q1 of the current year
Step 3. Determine your salaries for each quarter of the base period
Use your payroll, W2 forms, and / or documents received from your former employers to determine the amount of money you have earned in each business quarter of the base period. Any weekly allowance is determined on the basis of quarterly income during this period. I remind you that the base period consists of the past four quarters, preceding the current one.
- As an example, let's calculate unemployment benefits for a hypothetical worker who can live in both California and Texas. Let's say you apply for the allowance in October. October belongs to the 4th quarter, so we will use salaries ranging from Q2 and Q1 of this year and Q4 and Q3 of last year. Let's say our worker has earned $ 7000 in every quarter, except Q2, where it earned $ 8000.
- Note that some states allow you to count salaries over an alternate base period if you do not have enough salaries in the regular base period to apply for benefits. Depending on the state, some extenuating circumstances may have to be taken into account. For example, in Texas you can only do this if you have a debilitating illness, while in California there is no such limitation.
Step 4. Determine the quarter in which you earned the most
It is not uncommon for employees to earn more in certain quarters than others, especially if the work is paid by the hour. Usually, depending on the state in which you live, the unemployment benefit is calculated on the basis of what was received both in the single quarter in which the compensation was higher (henceforth, higher quarter) and in the average wage resulting from the highest quarter and the other quarters. Either way, you need to determine the quarter in which you earned the most to accurately estimate your benefits.
In both California and Texas, unemployment benefits are based on your salary during the single highest quarter in the entire base period. However, this is not the case in all states. For example, in Washington State, the average of the salaries in the two highest quarters of the base period is used
Step 5. Calculate your weekly benefits by following the procedure in your state
Each state has its own parameters for calculating the amount of weekly benefits due to the beneficiary. Usually, however, the process is simple: you have to multiply the salaries earned during the highest quarter (or an average of the quarterly salaries - see above) by a certain percentage, which divides the salaries by a certain number, or simply consult a table.. The ultimate goal is the same in every state: to allocate a fraction of the earnings you were "used to" in the form of regular subsidies. The amount of money you receive as a subsidy is always less than the amount you made up working. Consult the site of the employment agency for the state where you live for precise instructions.
- In Texas, weekly benefits are calculated by dividing the highest quarter wages by 25 and rounding up or down to the nearest figure. In other words, you receive 1/25 of the quarterly salary per week (while if you had worked and earned at the same levels as the top quarter, you would have received about 1/12 of the quarterly salary per week - just over double). In the case of our hypothetical worker, 8000/25 = $ 320. This worker should receive 320 dollars per week.
- In California, the process is slightly different. Unemployment benefits are calculated by matching the wages for the highest quarter to the pre-set values found in a table provided by the Employment Development Division. In this case, based on the $ 8,000 earned during the highest quarter our employee would be entitled $ 308 of subsidies. Note that this figure corresponds to about 1/26 of his quarterly earnings.
Step 6. Prepare for deductions on your actual weekly benefits
Take the amount of weekly benefits as the maximum possible value, rather than as a concrete representation of how much you will find yourself receiving. In fact, there are various reasons why you probably won't "keep" all the money you receive from your weekly benefits. For instance:
- Unemployment benefits are considered part of a person's taxable income and, therefore, the taxes provided on the taxable object can be applied at source.
- Unemployment benefits are foreclosable to pay for child support, debts, etc.
- Some types of work may be subject to unique rules in the event of unemployment benefits. For example, in California, if a school employee applies for employment between two periods but is reasonably certain of returning to work, their benefits may be withheld. However, if he is denied to return to work, he will be able to perceive the "arrears" thanks to the retroactive effect.
Step 7. Be prepared not to receive a benefit that is lower than the minimum set by your state or higher than the maximum
Each state has different "bands" relating to the amounts of weekly benefits. In essence, the state will give neither more nor less than certain fixed amounts per week. If the unemployment benefit you have calculated is less than the minimum amount required by your state, expect to receive the minimum amount, and vice versa if you have calculated a benefit greater than the maximum.
- For example, in California the maximum weekly allowance is $ 450. If our worker was enormously wealthy and instead of $ 8000 made $ 800,000 during the top quarter, he should be earning $ 450 dollars a week, not 800,000 / 25 = $ 32,000.
- In Texas, the maximum weekly allowance is $ 454, so our worker would receive that amount at most.
Step 8. Calculate the maximum benefit amount by multiplying the weekly benefit amount many times
No state provides indefinite weekly unemployment benefits. Usually, they "have a cap" that doesn't go beyond a certain amount of dollars to pay. Thereafter, to continue receiving benefits, the unemployed person must re-apply or request an extension. Typically, the maximum benefit amount is either a predetermined amount multiplied by the weekly benefit amount or a certain percentage of your base period salary.
- In Texas, the maximum amount of benefits payable to the recipient is 26 times the amount of weekly benefits or 27% of all salaries received during the base period - whichever is the lowest. Our hypothetical worker's weekly allowance equals $ 320: 320 x 26 = $ 8320. His total base period salary is $ 29,000: 29,000 x 0.27 = $ 7,830. lower, so we can say that the maximum amount of his subsidies is equal to $ 7, 830.
- In California, the maximum benefit payable to the recipient is 26 times the weekly benefit amount or the half of all salaries earned during the base period - whichever is the lowest. Our hypothetical worker's weekly allowance is $ 308: 308 x 26 = $ 8008. His total base period salary is $ 29,000: 29,000 / 2 = $ 14,500. The first is lower, so we can say that the maximum amount of his subsidies is equal to $ 8, 008.
Part 2 of 2: Understanding the Basics of Unemployment Insurance
Step 1. Know the timing and amount of the subsidy
Typically, a person who receives unemployment benefits receives the benefit every week, rather than every two weeks or every month, as is the case with most wages. The sum of each weekly benefit is usually called the Weekly Benefit Amount or Weekly Benefit Rate (WBA or WBR). The WBA varies based on the size of the beneficiary's last accrued income - the more he earned, the higher his unemployment benefits.
While the only way to be absolutely sure of how much you will receive each week on unemployment benefits is to apply, in reality, you can calculate around 40-60% of your last income (depending on where you live)
Step 2. Know that unemployment benefits are subject to rules and limitations
To prevent fraud and benefit abuse, state governments usually make it a condition for receiving benefits that recipients seek full-time work. Occasionally they may be asked to provide proof of their search for a new job by submitting an up-to-date curriculum vitae, records of correspondence with prospective employers, job applications, etc. Beneficiaries can also be requested to attend business meetings or seminars.
Furthermore, the amount of unemployment benefits received is not unlimited. The Maximum Benefits Payable or Maximum Benefit Amount (MBP or MBA) - that is, the "maximum amount of benefits payable" or "maximum amount of benefit" - equals the total amount that the State will pay in the form of unemployment benefits during the expected period (often one year). Once you have received this amount, you will likely need to re-apply and / or take an eligibility interview to continue receiving the benefit. The MBP varies from one state to another
Step 3. Know that each state has its own unemployment benefit eligibility requirements
To receive unemployment benefits, you usually need to meet certain eligibility requirements. The employment agency usually checks if you are eligible by contacting both you and your employer, so don't lie about your eligibility. To be eligible, you must have lost your job for reasons beyond your control - for example, you cannot have been fired for incompetence or quit your job because you didn't like it and file an unemployment claim. Other more common requirements that you probably need to have, depending on the state you live in, are:
- Having earned more than a certain amount during the base period. This is usually quite small - even a low-wage paid job may work if you worked most or all of your base period. This requirement is established to prevent people who have worked very little during the base period from applying for benefits.
- The hypothetical weekly allowance must be greater than a certain fraction of your total income accrued during part or all of the base period. As mentioned, this requirement is established to prevent people who have worked very little from applying for unemployment benefits.
- Have worked a certain number of days or hours during the base period. See above.
Advice
- You can use an alternative base period if you have not accumulated the required amount of hours worked by doing the traditional base period calculation. The number of hours required varies from state to state, but usually equates to around 680 hours.
- While not a necessity, an employment lawyer can guide you in submitting your application and calculating the amount of your weekly benefit.
