WalletPrep

Unemployment insurance

A state program that pays part of your old wages for a limited time after you lose a job through no fault of your own.

Each state runs its own unemployment insurance program, funded mostly by taxes employers pay on wages. You file with the state where you worked, and the state decides whether you qualify, how much you get each week and for how many weeks.

Most states pay for up to 26 weeks. Benefits are taxable income, and you usually must file a claim every week or two and show that you are looking for work.

Example

If your state pays half of your old $900 weekly pay, your benefit is $900 ÷ 2 = $450 a week, or $405 after 10% federal withholding.

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