The coronavirus is wreaking havoc on the United States economy. In just 4 weeks, over 22 million people have filed for unemployment. This week, millions more are expected to file as well.
The good news is that the federal and state governments have stepped in to help. The government imposed stay-at-home orders and it is not the American people’s fault that businesses are closed.
Read on for a guide to unemployment benefits eligibility. Here we will discuss the unemployment process in states like Illinois, California, New York, Wisconsin, Indiana, and Ohio.
Learn more about topics such as unemployment benefits requirements, eligibility, and the application process below.
Can I Apply Online?
Each state has an online portal to apply for unemployment benefits. However, the coronavirus has placed a heavy burden on each state’s online system.
Take Illinois as the perfect example. Due to the large influx of applications, the state implemented an alphabet system to determine when to apply.
For example, last names starting with the letters A to M file online applications on Tuesdays, Thursdays, and Sundays. You should check with your state to see how the application process has changed due to this crisis.
What Are Common Eligibility Criteria?
Many states utilize similar guidelines for determining unemployment eligibility. Continue reading for a breakdown of common eligibility criteria.
No-Fault
One of the most common eligibility standards is that you were fired or let go at no fault of your own.
State governments use the no-fault policy so that they avoid incentivizing unemployment. You are likely disqualified from unemployment insurance if you quit without a good cause.
You may also be deemed ineligible if you are fired for misconduct. If you fail to apply or accept a suitable job, the state may also deny your application.
Participating Employer
Employers fund each state’s unemployment insurance system. Throughout the year, your employer is making recurring contributions to the unemployment fund.
It is uncommon for employers not to be registered with the state. The vast majority of employers that pay their state income taxes are contributing to unemployment. However, there are rare instances in which an employee is ineligible due to their employer.
Due to their participation in the system, your employer does hold leverage in the approval process. If they contest your claim, the state may deny your application.
Income Thresholds
Many states establish income thresholds to qualify for unemployment. In Illinois, for example, you need to earn at least $1600 during the base period.
They also set income thresholds for the calendar quarter outside the base period. Earned wages need to exceed $440 during this time.
What Documentation Is Required?
The state needs to verify that you are out of work. They will ask for some documentation to prove you are in need.
As mentioned prior, you will need to verify your income. Therefore, multiple copies of your pay stubs are necessary.
You should also keep any communication with your boss or Human Resources contact. In the event of termination, you are likely to receive a notification letter or e-mail. Make sure to save this for your records in the event that the claim is contested.
The state will also ask for some information about your employment. The state will ask for your first and last day on the job. In addition, they will ask about your reason for leaving and any financial severance offered.
How Much Benefit Will You Receive?
There is no set benefit that you will receive on unemployment. It depends on the state that you reside in and how much wages you lost.
Ohio and Illinois have the most generous unemployment policies in the nation. These states pay out a maximum benefit of $596 to $1192 per week. The upper region of this payout is based on how many dependent allowances you claim.
California and New York have a weekly maximum benefit of $371 to $450. Wisconsin and Indiana also provide the same maximum benefit level.
What About the Federal Government?
Unemployment insurance is typically administered by the state that you reside in. Due to the coronavirus pandemic, the federal government has stepped in to provide additional assistance.
Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, unemployed individuals receive an additional $600 per week. The extra unemployment fund will continue until the end of July.
Another perk of the CARES Act is that it extends unemployment benefits for a longer period of time. Traditionally, most states provide unemployment insurance for up to 30 weeks in a calendar year. The new law provides funding and eligibility for an additional 13 weeks.
In the past, certain types of employees were not eligible for unemployment insurance. This includes freelance workers, independent contractors, and part-timers. Thanks to the CARES Act, these employment types are eligible for government assistance from both the feds and state.
Is There a Waiting Period?
Many states do have a waiting period before you receive benefits. The waiting period usually lasts one week.
Due to the coronavirus pandemic, many states are waiving this period. States like New York have done this to get assistance to unemployed workers faster.
When Will You Receive Benefits?
The time between application approval and receiving benefits varies based on state. You can also expect delays due to the heavy volume of applications right now.
Under normal circumstances, Illinois processes claims in 3 to 10 days. However, each state is different and the processing time could be much longer.
There is also the possibility that your application gets denied. This will force you to reapply and extend your waiting time. The good news is that an approved application is typically backdated to your employment termination date.
Where Do I Apply for Unemployment?
Below is a list of websites in which you can apply for unemployment in each state. Please click the state in which you reside to follow the hyperlink:
A Recap of Unemployment Benefits Eligibility
These are trying times for the United States. Millions of people are losing their jobs every week.
Thankfully, our federal and state governments have established a safety net. The unemployment insurance program will keep you afloat while you look for a new job.
If you have any questions about unemployment benefits eligibility, contact us today for additional assistance.