About Unemployment

• The qualifications to receive unemployment insurance benefits are similar in all states. Claimants must be unemployed or working reduced hours, and they must have a sufficient amount of insured income in their base periods. Claimants must also show that they were not the cause of their unemployment. Most states pay unemployment insurance benefits for a maximum of 26 weeks, though federal or state extensions may be available.
  
  

Calculations

• Most states calculate unemployment insurance benefits as a percentage of your previous wages. To calculate your benefits, the unemployment office considers the wages you earned during the last four quarters you worked. The office typically determines your previous earnings by looking at the quarter with the highest earnings, or it may divide your total earnings for all quarters by 12 to calculate a monthly average. To determine your weekly benefit amount, the unemployment office divides the estimate of your monthly or quarterly income by the number of weeks in the period and multiplies the result by a predetermined percentage.
  
  

Example One -- State Considers Entire Base Period

• If you earned $36,000 in your base period and you live in a state that considers the entire amount, the unemployment office divides $36,000 by 12 to determine your previous monthly earnings. In this case, your previous monthly earnings are $3,000 (36,000/12 = 3,000). Your weekly earning are $750 (3,.000/4 = 750). If the state pays 60 percent of your previous earnings in unemployment insurance, your weekly benefit amount would be $450 (.6 x 750 = 450).
  
  

Example Two -- State Considers Highest Quarter

• If you live in a state that considers the highest quarter during your base period and your previous four quarters of earnings were $10,000, $12,000, $9,000 and $11,000, the unemployment office will calculate your benefits based on the quarter you earned $12,000. Each quarter has 13 weeks, so your previous weekly earnings are $923.08 (12,000/13 = 923.076). If the state provides 60 percent of your previous wage in unemployment insurance benefits, your weekly benefit amount is $553.85 (923.08 x .6 = 553.848).
  
  

Considerations

• If you are working reduced hours or you do part-time work while receiving benefits, you may not receive your full weekly entitlement each week. Some states may alter the amount of benefits you receive based on how many weeks you worked during your base period or the circumstances that caused the loss of your job. Most states impose a limit on the maximum amount of unemployment benefits you can receive each week regardless of your previous earnings.