Question 1

What is unemployment insurance?

Accepted Answer

Unemployment insurance (UI) is a benefit the government provides to qualified individuals. All states and the District of Columbia have a unique version of UI. However, every version must adhere to the general guidelines provided by the federal government.

Question 2

Do all unemployed individuals qualify for unemployment insurance?

Accepted Answer

Unfortunately, being without a job isn't the only qualification for unemployment insurance. State agencies consider factors such as why you're unemployed and whether you meet work and wage requirements.

Remember, requirements for each state vary, so it's best to contact your state-specific UI program for details.

Question 3

How is the unemployment insurance program funded?

Accepted Answer

The federal government requires all businesses with employees to pay a payroll tax on the first $7,000 they compensate each person in their organization.

The generated income from this tax becomes the funding for unemployment insurance via the Federal Unemployment Tax Act (FUTA).

Question 4

In which situations can you be denied unemployment insurance?

Accepted Answer

Resigning from work disqualifies you from receiving unemployment benefits. The same applies if your company lets you go because of misconduct.

In some cases, you may be dropped from the program even after you've qualified. This could happen if any information provided was fabricated. Additionally, you must actively seek employment and not reject any suitable job offers to continue receiving benefits.

Question 5

How did the COVID-19 pandemic affect unemployment insurance?

Accepted Answer

The CARES Act of 2020 allowed unemployed workers to receive additional unemployment benefits. They included the following:

Federal Pandemic Unemployment Compensation (FUTA) increased the amount qualified individuals received weekly.
Pandemic Unemployment Assistance (PUA) allowed more people to become eligible for UI.
Pandemic Emergency Unemployment Compensation (PEUC) extended benefits beyond the states' original payout period.

All of these programs expired in September 2021.

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