If you’re out of work and living in the United States, you may be wondering if you can apply for unemployment benefits to help you stay afloat financially.
While every state offers unemployment benefits to help those who are laid off or lost their jobs, each state varies in regards to how they determine eligibility and the amount of benefits paid each month. Some state unemployment benefit plans are more robust than others.
In California, the state’s Employment Development Department (EDD) administers Unemployment Insurance (UI). The EDD handled 26.8 million new and reopened unemployment claims between March 2020 to April 2022. Over $182 billion has been paid out to California residents in that same time period.
Being unemployed or laid off can be a stressful time. Navigating the unemployment benefits process can add to the stress. We’ve created this guide to help take the guesswork out of applying for unemployment benefits. Read on to learn more about qualification requirements, how to apply, and how to receive your benefits if approved.
What are unemployment benefits?
Unemployment benefits, also called unemployment insurance, is a joint state-federal program designed to act as a social safety net to provide an income to individuals who have been laid off or lost their job through no fault of their own.
Benefits are typically paid on a weekly basis and you can receive your benefits for a certain amount of time — typically up to 26 weeks.
The amount you receive in unemployment benefits will most likely not be the amount you received when you were working. In California, the minimum weekly benefit amount is $50 and the maximum benefit paid out is $1,540.
Who qualifies for unemployment benefits?
If you had a full-time or part-time job and have been laid off or lost your job, you are likely eligible for unemployment benefits. However, every state has different eligibility rules, and sometimes the reason for your unemployment can affect your eligibility.
In California, you must meet all eligibility requirements when you apply for unemployment insurance. To receive California UI, you must:
- Be totally or partially unemployed through no fault of your own
- Be physically able to work and available for work
- Be ready to accept work immediately (e.g., actively job searching)
- Have earned enough wages or worked enough hours during the base period (18 months)
You do NOT qualify for UI if you have not worked at all or earned wages during your state’s base period — an established period of time (e.g., 18 months) that you must work and earn wages.
For the most part, you should qualify for unemployment benefits if you lost your job through no fault of your own. Here are some common scenarios:
Termination. If you’ve been fired, you may be able to collect unemployment insurance, but the reason for your termination matters. If you were fired because you did not meet expectations on the job, you may qualify. If you were fired because you stole from the company or other illicit activities, you most likely will not receive benefits.
Quitting. If you quit your job, you usually don’t qualify for unemployment benefits. However, there are always exceptions. If you worked in an unsafe environment, for example, you may qualify for your state’s unemployment benefits.
Laid off. If you were laid off due to downsizing or for other reasons outside of your control, you will most likely be approved for unemployment benefits.
How can I apply for unemployment benefits?
To begin receiving unemployment insurance benefits, you must file a claim with the unemployment insurance program in the state where you worked. Most states accept applications by telephone, in person, and online.
Before you file a claim, review your application to ensure you’ve provided correct information. Errors or missing information on applications can delay your benefits. Being dishonest about your earned income or employment history can lead to penalties.
Here’s a step-by-step guide on how to apply for and collect unemployment benefits:
1. Apply immediately after you’ve lost your job. File your claim for unemployment insurance in the first week after you’ve been laid off, had a reduction in your hours, or lost your job. Even if you are receiving severance pay, you should still qualify for UI.
2. Gather required documents. The UI benefits application will ask for a lot of details to verify and approve your claim, including:
Identity documents: Social security number, address, driver’s license, passport (other documents may be accepted in place of these if you do not have one)
Most recent employer information: Company name, address, phone number, and the name of your supervisor. You will also be asked for the last day of employment and the reason for your reduced hours/job loss.
Employment history: list any employers you worked for in the past 18 months
Federal Employer Identification Number: This Federal tax number is used to identify a business identity. Provide the number from your most recent employer — this can be found on your W-2 form.
Pay information: You will be asked for a pay stub or other documentation to show how much you were paid in the last week you worked.
3. Apply on your state’s unemployment website. In California, you’ll do this on the Employment Development Department website. Not in California? Visit the U.S. Department of Labor’s CareerOneStop website to find your state’s unemployment insurance program. You can also apply in person or on the phone if you prefer.
Waiting period. Most applications are processed quickly and you can expect you receive your first benefit check within 2-3 weeks after you file your claim. Your claim officially begins the Sunday of the week you applied for UI.
Get paid. Once your application has been reviewed and approved, you will begin to receive unemployment benefits after the mandatory waiting period. Depending on your state, you may receive your money via direct deposit, a debit card or by a check in the mail. The amount you receive will depend on the state you live in and how much you made at your most recent job. Visit the EDD Unemployment Calculator to see how much you can expect to be paid weekly.
Certify for benefits. Your state may require you to “certify” for benefits every two weeks to continue receiving UI payments. In California, you must answer basic questions every 2 weeks to tell the EDD office you are still unemployed and eligible for continued benefit payments.
What are federal unemployment benefits?
Unemployment insurance is a joint federal-state benefits program that provides temporary financial assistance to those who have been laid off, had their work hours reduced or lost their job through no fault of their own.
The federal government provides funding to states for unemployment benefits, but each state has its own eligibility requirements, benefit amounts, and payment periods. States operate their unemployment benefit programs based on federal laws, and every employer and employee pays into the state fund as per state requirements.
Unemployment benefits & taxes
As with other forms of income, you must pay taxes on any unemployment insurance benefits you have received. You must report all UI payments as income on your federal taxes. Your benefits may or may not be included on your state tax return, depending on the state you live in.
You should receive a Form 1099-G (Certain Government Payments) that shows the amount of unemployment benefits you were paid in the year so you can accurately report this income when you do your taxes. There are a few different ways to pay taxes owed on any UI income you receive:
- Request to have federal taxes withheld. When you apply for UI, you can request the taxed amount be removed from your unemployment weekly check, as it would be if you were paid by an employer.
- Make quarterly estimated tax payments. If you owe more than $1,000 in taxes you are required to pay quarterly estimated taxes.
- Pay the tax in full when it is due. When you file your taxes, you can pay the amount owed immediately.
- Use your tax return to pay the amount owed. This may result in a smaller tax refund than in previous years.
