Since President Trump has declared COVID-19 to be a national emergency, more than 40 million Americans have filed for unemployment. This is the highest unemployment rate the United States has seen since the Great Depression, and virtually every industry has been affected.
If you’ve faced a temporary or permanent layoff, you aren’t alone. And even if you have a substantial emergency fund, this pandemic is unprecedented, making it nearly impossible to feel fully prepared.
Thankfully, state and federal governments have provided additional COVID unemployment benefits for those who find themselves out of work, whether permanently or temporarily, due to COVID. Here’s what you need to know.
How Do You Qualify for Unemployment?
Unemployment benefits have been around for quite some time, but most people haven’t had to use them.
Unemployment works like this: After a job loss, you can go to your state’s unemployment office (or website) to file for unemployment. This will open up a claim, which will be sent to the employer you just left. If that employer believes you should not receive unemployment benefits due to ethical, performance, or behavioral issues that resulted in your termination, they may contest your claim. But don’t worry – employers aren’t likely to contest your unemployment benefit if you were laid off due to COVID.
It usually takes unemployment offices just a few days to approve your claim. However, due to the influx of unemployment claims related to COVID, many unemployment offices are struggling to keep up. If you don’t hear back within a few days, research your state’s unemployment website to see what their current waiting period looks like.
To get approved for unemployment, you need to show you lost your job through no fault of your own (such as a layoff). You will also need to meet your state’s minimum qualifications. Some states require you to have worked for an employer for a minimum amount of time before you can qualify. You also have to prove that you are able to work and are actively looking for a new job.
Once you are approved for unemployment benefits, you will receive a weekly payment, which is a portion of your salary. Each state varies in how much they pay, but we’ve outlined the basics in this spreadsheet for you. Each week, it’s important to login to your state’s unemployment website to report back to them in order to continue getting payments.
Length of Unemployment and Amount of Money Available
Each state has different rules about how much and for how long they will pay for your unemployment benefits. To make it easy, we put together a simple spreadsheet for you to review your state’s offerings.
Typically, states pay all or a portion of your weekly pay. If you are a higher income earner, it is unlikely that you will receive your full salary from unemployment benefits, as the weekly allowance is capped by all states.
Keep in mind, these are just the maximum amounts. Visit your state’s unemployment website to get a better estimate of what sort of benefit you can expect.
Further Benefits through the CARES Act
Because COVID has been so damaging to so many people, Congress passed the Coronavirus Aid, Relief, and Economic Security (or CARES) Act. This act extends the unemployment benefits available to you if you suffered from a layoff or furlough due to COVID.
Some additional benefits permitted under the CARES Act include:
- $1,200 stimulus checks mailed to qualifying individuals
- Additional 13 weeks of unemployment benefits through December 31, 2020
- Additional $600 per week in unemployment benefits
- Contractors, self-employed, and part-time workers are also eligible for unemployment
When Does the Additional $600 Benefit Payment Take Effect?
The federal government has not provided much clarity as to when you can expect to receive the additional $600 weekly benefit through the CARES Act. However, it is known that the additional $600 in weekly benefits will be provided starting on April 5, 2020. So, if you faced unemployment during the beginning of April, you may still retroactively receive the additional funds provided through the CARES Act (if you were approved for unemployment benefits through your state, that is).
How to Apply for Unemployment in Your State
To learn how to file for unemployment in your state, check out the spreadsheet we put together. It will list the phone number and website for the unemployment office in your state.
If you were laid off or furloughed, you will want to file for unemployment as soon as possible to ensure you receive the benefit right away. Keep in mind, if you attempt to call your state’s unemployment office, you may face extremely long wait times due to the amount of applications they are receiving.
To apply for unemployment benefits, you will need to provide certain information. While it may vary from state to state, here is a general list of what you can expect they will ask for:
- Personal information, such as name and birth date
- Contact information, such as phone number, address, and email
- Social security number
- Direct deposit information
- Employment history and rate of pay at those jobs
- They will ask you why you are no longer employed. Answer honestly!
What Happens After You Apply?
Once you apply for unemployment, you will receive confirmation of approval or denial. If you were denied for any reason, you can always reapply.
Assuming you were approved, you will need to remember to submit a new claim every week in order to continue receiving benefits. Failure to check in weekly will stop your unemployment payments, so make sure you stay on top of it.
Under normal circumstances, unemployment offices want to know how your job search is going before they approve your weekly payments. However given the circumstances, they have relaxed their stance on this somewhat. So, don’t get too down if you are having a difficult time in your job search – that’s what this benefit is here for.
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This is a weird moment but Italy has a different story for unemployement and long burocracy so is Always better have an Emergency fund