5 Things You Should Know About Unemployment Before Applying

Even if you have already applied for unemployment insurance, this is stuff you should know. 1 out of every 5 US workers has now applied for unemployment insurance and it is expected this number will increase. Here is what you should know as you navigate the COVID-19 pandemic and unemployment versus jobs.

If you want to use Skip's free self-reporting unemployment tracker, go here.

Not everyone gets approved for unemployment insurance

The CARES Act has expanded coverage for many groups of people, including independent contractors and self-employed folks, but you actually need to earn a certain minimum to qualify. This minimum amount varies by state but it is important to understand that not everyone will be eligible. Typically, states determine eligibility by looking at your earnings during 4 of the last 5 quarters.

Regardless of whether you think you may not be approved, if you decide to apply, given the rest of our list, go for it. It is better to apply and get denied than not apply at all.

Your unemployment benefits are taxable

This is important to factor in when you figure out how much you could be earning in your state on unemployment: Don't forget to account for taxes. Similar to your regular taxes as an employee or independent contractor, the amount you owe in taxes will depend on your tax bracket.

By the way, a quick tip. Most states have an unemployment calculator so you can figure out how much you'll be eligible on unemployment during the Covid-19 pandemic. Just google your state name and "unemployment calculator".

You must file a weekly or biweekly claim to stay eligible for unemployment insurance

Once you start receiving unemployment, you must continue to submit regular claims and information in order to keep receiving your money. Requirements vary by state but many states will mail your forms as part of this as well as give online options. While these claim filing processes may seem burdensome depending on your state, they are critical for you if you want to stay on unemployment.

Work search requirements are waived now

Usually you need to be actively looking for work to stay eligible for unemployment insurance, and you need to submit this proof as part of your weekly or biweekly claims.

Since most states still have stay-at-home orders, these search requirements are generally waived. Once stay-at-home orders are lifted, we expect unemployment insurance processes to go back to a new normal, which will include requiring you to actively be looking for work.

Length of unemployment insurance varies by state

Typically states will pay you unemployment benefits for up to 26 weeks. Through the CARES Act two big things have happened: Unemployment is extended for 13 weeks above the existing state maximum, and everyone on unemployment will get an additional $600 per week through July 2020.

This is important to note so you can plan out accordingly. During these times, it is incredibly difficult to predict the future and do financial planning with so many unknowns, but you should try your best. We also have free job trackers and other help available on Skip too as well as posts on our blog about which companies are hiring now.