Unemployment Benefits

Unemployment Benefits are the payments made by the Government to individuals who are unemployed due to no fault of their own. One way to think of it is like an individual bailout. When a person no longer has an income coming in, they need some way to continue to pay for rent and food while they look for a new job or recover from their injury.

Unemployment Benefits

• Regular benefits are paid for a maximum of 26 weeks in most states.
• Additional weeks of benefits are be available during times of high unemployment.
• In many states, the compensation will be half you earnings, up to a maximum amount. For example, in New York State you're entitled to collect up to a maximum of $405, which is half the state's average weekly wage. While in Arizona, the highest benefit rate is $205.
• Benefits are subject to Federal income taxes and must be reported on your Federal income tax return.

So who pays for unemployment benefits?

"employers pay federal unemployment taxes of 6.2 percent on the first $7,000 earned by each of their employees during a calendar year. These federal taxes are used to cover the costs of administering the UC programs in all states"

• All federal and state administrative costs associated with UC programs;

• The federal share of benefits paid under the federal-state Extended Unemployment

Compensation Act of 1970

To file for unemployment click here