How to File for Unemployment Benefits - Nancy Collamer

Nancy Collamer M.S. is a career counselor and founder of Jobsandmoms.com, a website for professional-level women who are looking for flexible jobs, work-at-home opportunities and innovative work/life resources.
She is the Author of the book, "The Layoff Survival Guide."

Filing for unemployment benefits used to be a depressing and humiliating process. Fortunately, the process for filing a claim has been simplified in recent years. In many states, you can now file by telephone, removing the stigma of having to stand on long lines at the unemployment office. Once your claim is processed, you’ll be required to call in once a week to keep your account active. Here are some commonly asked questions about unemployment:

When Should I file?
Your claim should be filed in the first week that you have become totally or partially unemployed. Do not delay filing a claim if you do not have your pink slip or if you are uncertain whether you are eligible for benefits for any reason.

Filing immediately is important for two reasons:
1. Ordinarily, you do not get paid for the weeks prior to the week you filed your claim. Benefits will not be paid retroactively for weeks preceding the filing of your claim unless it is established through a hearing process that good cause for late filing existed.
2. It generally takes 2-3 weeks to receive a benefit check so you want to get the process rolling ASAP.

Where do I go to file a claim?
In reality, you may not need to go anywhere as the majority of states now accept unemployment claims via telephone. To find the unemployment office in your state, go to Google and input the name of your state and "filing for unemployment benefits" into the search box.

What if I live in one state but worked in another?
First, contact the state where you live. If you are ineligible for benefits in your home state, they can direct you to the proper office.

What documents will I need to file?
Here again, the specifics vary from state to state. In general you will be asked for:

Your Social Security number.
Your mailing address and zip code.
A telephone number where you can be contacted for additional information.
A paystub.
The names and addresses of all employers for whom you've worked within the last 18 months, including those in another state.
If you do not have all of the documents listed above, you may still file a claim. There may be some delay, however, in receiving your first payment.

How much will I receive?
Assuming you meet the requirements for eligibility your weekly benefit will be calculated based on your prior compensation. The maximum payment you are eligible to receive, as well as the number of weeks you can get paid in one year, varies from state to state.
Be aware that unemployment compensation is taxable income. When you work, your employer withholds money from each paycheck to pay taxes. But when you receive unemployment compensation, nothing is automatically withheld from your check. This means you may have to pay estimated tax to meet your tax obligation. You can find out more about estimated tax and how to pay it by calling or visiting your local IRS office.

Other services offered by unemployment:
In addition to providing unemployment compensation, there are a host of job search and entrepreneurial assistance programs provided free of charge by the state unemployment offices. While the quality of the programs vary from state to state, I have been duly impressed by the scope and professionalism offered by some of the programs located in my home state. Give them a try – you may be pleasantly surprised!

Who is eligible to collect unemployment?
Employees are eligible for unemployment benefits only if they are out of work through no fault of their own. This means that if you have been laid-off, you should be eligible to collect unemployment benefits.

Are unemployment rules administered by the federal government?
No. Unemployment insurance programs are run by each state. Each state determines who is eligible for benefits, benefit amounts, and the length of time workers can receive benefits.

Can I still collect unemployment if I am paid a severance package?
The answer to this question depends mainly on the method used to pay out your severance. If your company terminates your employment, but continues to pay your salary as a severance payment for a fixed number of weeks, you might have to wait to collect unemployment until after the payment stops. If you are paid a lump-sum severance payment upon termination, you might be eligible to immediately collect unemployment benefits. In either situation, file for benefits immediately, and then let your state unemployment office make a determination regarding your eligibility.

Can I collect unemployment benefits if I was fired due to poor performance?
In most states, if you were fired for poor performance (i.e., lack of skills, errors in judgment or failure to meet performance goals) you will still be eligible to collect unemployment. However if your termination is due to “willful misconduct” you will not be able to receive unemployment benefits. Willful misconduct is considered to be behavior that is serious, deliberate and intentionally destructive to the company. However, the determination of what constitutes willful misconduct is determined on a case-by-case basis, and can vary depending upon the state where the termination hearing takes place.

I was an independent contractor on a long-term assignment at a firm that just had massive layoffs. Can I collect unemployment?
Unfortunately, no. Independent contractors are generally not eligible for unemployment insurance benefits.

Are unemployment benefits considered taxable income?
Yes, they are! Most states do not automatically withhold taxes from benefit checks, but you may elect to have the tax withheld by the State Unemployment Insurance agency.

Can I collect unemployment benefits if I worked part-time?
Some states do pay part-time employees benefits. Call your local unemployment office to get information specific to your state.

How long will it take to get my first unemployment check?
In general, it takes two to three weeks after you file your claim to receive your first benefit check.

I think I now want to start my own business. Can I still collect unemployment while I work on my business plan?
Some states pay a self-employed allowance, instead of regular unemployment insurance benefits, to help unemployed workers while they are establishing businesses and becoming self-employed. Participants receive weekly allowances while they are getting their businesses off the ground. This is a voluntary program and as of this writing, Delaware, Maine, Maryland, New Jersey, New York, Oregon and Pennsylvania have Self Employment Assistance programs.

How do I get in contact with my state unemployment office? Click here to find out how to collect unemployment in your state.