Do I Need to File State & Federal Forms on Unemployment Compensation?
Ideally, a worker will never need to apply for unemployment insurance benefits during his career. While that situation may be ideal, it may not be realistic: Many workers find themselves without work following a workplace closure or corporate restructuring. Should that happen, an employee should know the basics about how to apply for unemployment benefits, including the necessary forms – many of which are available online – needed to begin receiving benefits.
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Unemployment Insurance State/Federal Partnership
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Although the U.S. Department of Labor oversees and funds each state’s unemployment insurance system, claimants have no direct contact with the federal aspects of the program. Administered exclusively by states, which develop many of their own policies on eligibility, unemployment insurance programs merely need to meet federal standards for applicant eligibility. Because of this, applicants don’t need to worry about contacting the federal department of labor to claim their federal unemployment insurance benefits. Federal funding is included in benefits administered by the state.
Applying for Unemployment Benefits
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In many cases, applicants don’t even need to file a form with their state unemployment authority. With efforts to streamline the application process, most states allow claimants to make an initial claim using on online benefits system, and those without regular access to the Internet may make applications over the telephone. Applicants don’t complete physical application forms but should be prepared with basic information such as their Social Security or Alien Registration number, the dates they worked for their last employer and their most recent employer’s business name and mailing address. Applicants may also need to provide their state agency with information on their wages and work schedule.
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Federal Eligibility Requirements
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States administer unemployment benefits for the U.S. Department of Labor, but federal law governs all states’ eligibility requirements. Beneficiaries must be involuntarily unemployed and out of work because of a layoff or cutback in hours rather than being fired for misconduct. Workers must also contribute a base amount to federal unemployment taxes, which is mandated by state law, and usually need earnings in at least two calendar quarters in the past 15 months. The federal Department of Labor also requires that workers be able and available to accept a job if it’s offered, and many beneficiaries must document their ongoing job search.
Information for Employers
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State agencies handle contacts with employers when calculating benefits and determining eligibility, but employers also face the responsibility of filing state and federal unemployment taxes. Employers must pay federal unemployment taxes--usually referred to as FUTA taxes--on an annual basis. Employers must pay a 6 percent tax on the first $7,000 of employee earnings each year and file these taxes using Form 940. Employers should consult their state department of revenue to determine tax rates and obtain forms necessary to file state unemployment taxes.
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