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Answer:
Dear BuyandHolder,
The government certainly manages to tap into all kinds of accounts –- for what it calls early withdrawals, cashing in prior to maturity and other such things. But it’s yet to take money from our savings or investment accounts prior to granting unemployment insurance. Let’s hope it stays that way!
Given that you think you will lose your job, here’s what you need to know about unemployment.
Collecting unemployment insurance requires more than making a phone call. A number of documents are involved and the sooner you’re on the case, the sooner you’ll receive your first check.
This government program was set up in 1935 to give payments (by check, direct deposit or an unemployment debit card) to workers who lose their job through no fault of their own. Payments are for a specific length of time or until you find a new job.
Note: Two common situations in which you most likely will not be eligible: One, if you left your job voluntarily. And, two, if your severance package includes a salary for a stated time period (rather than a lump sum). In this case, you would not be eligible until the payments stop. However, the rules are vague and unclear, so file anyway and let the state tell you if you’re not eligible.
How To Apply
Once you are officially let go, apply to your nearest state unemployment office -– you won’t receive a check until all paperwork is complete and your eligibility is actually verified. This could take up to three weeks, sometimes even longer.
$TIP: To find the appropriate office and filing
instructions, including required documents, go to: www.servicelocator.org/OWSLinks.asp.
Each state’s website explains how to apply and what papers you need to show. Some states allow you to apply online. Others by phone or by mail. Some have set it up so you can use all three methods... but very few ask you to come into a physical office any more.
Regarding the documents... New York state, for example, requires the following paperwork and information; other states have similar requirements and some ask for even more material.
- Valid driver’s license or non-driver photo ID card number
- Mailing address & zip code
- Telephone number where you can be reached Mon-Fri, 8am-5pm
- Employer Registration number or Federal Employer ID number
- Name, address, zip code & telephone number of your most recent employer
- Alien Registration Card if you’re not a U.S. citizen
- Copies of Forms SF-8 & SF-50 if you were a Federal employee in the last 18 months
- Copy of your most recent separation form DD214, Member 4, if you are an ex-service member claiming benefits based on your military service
- For direct deposit of benefits, your bank routing and checking account numbers
How Much You’ll Receive
The money you receive is provided by state unemployment insurance programs funded by a tax imposed on employers (with the exception of several states that require a minimal employee contribution). The overall guidelines are federally determined but the specific dollar amounts are determined by the individual states.
Although the formula varies state by state, it is typically based on a percentage of your weekly wage for the last 52 weeks, not to exceed a statutory cap. For example, the weekly cap in New York state $405 per week; in Illinois, $369; and in California, $450. (Illinois also has a supplement if you have a nonworking spouse or dependent children.)
$TIP: To check your state’s formula, contact your state unemployment office; for a list, go to: www.servicelocator.org/OWSLinks.asp
Initially, you will receive a check for 26 weeks. However, when the unemployment rate across the nation is high, the length is often extended with yet a further extension in select states with extremely high unemployment.
Unfortunately, unemployment insurance is taxed at the federal level and in some states, at the state level.
Exceptions
Again, the exceptions for the most part are determined at the state level. You might not receive unemployment if:
- You walked out or quit voluntarily without good cause.
- You were fired for misconduct connected with work.
- You are not able, ready and willing to accept a suitable job.
- You refused an offer of suitable work.
- You knowingly made false statements to get benefit payments.
So it obviously pays to behave!
Good luck!
STAY TUNED: Next week we’ll discuss how to continue your health coverage through COBRA if you are let go from your job. |
