What Percentage Is Used to Calculate Unemployment Claims?
Many new unemployment claimants think their benefits from the state should replace their previous salary. The truth is that your benefits will only be a percentage of the money you earned before your loss of work. The actual percentage varies by state and is based on the insured wages you earned during your base period.
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State Specific
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The formula used to determine unemployment benefits is state-specific, so you need to consult your state's laws. Your weekly benefit amount should average out to about half of the average insured wages you earned per week during your base period. There are also state laws limiting the amount of your weekly benefit amount to the statewide maximum.
Insured Wages
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Insured wages are those you earn from work covered under the unemployment insurance laws of your state. Most work done within a traditional employee-employer relationship is covered. Self-employment, independent contract work and work done by church employees are generally not covered. The laws vary depending on the state you live in, so it’s important to contact your state labor office if you’re unsure about whether your work is covered.
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Base Period
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All of the insured wages your state uses to determine your unemployment compensation occur during your base period. Your base period is the first four of the last five full calendar quarters before you filed your claim. So, if you filed your claim on September 20, 2011, your base period would be April 2010 through March 2011.
Alternate Base Period
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Some states have an alternate base period if you cannot qualify for benefits using the standard period. The alternate base period consists of the last four full calendar quarters before you filed your claim. So, if you filed your claim in September of 2011, your alternate base period would be July 2010 through June 2011.
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