What Percentage of Income Can You Have & Still Claim Unemployment?
The U.S. government requires each state to have an unemployment insurance program in place to assist workers who are temporarily out of work. Although each state administers its own program, there are similarities among the various eligibility requirements. If you're underemployed, meaning your hours have been reduced, you may qualify for partial unemployment benefits. In addition, if you're receiving benefits and work a temporary job or receive a lump sum payment, you may continue to be eligible for partial benefits. Benefits are not determined by a percentage of your former income, but rather by the full benefit amount you're entitled to minus any income (or a portion of that income) you actually earn that week.
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Basic Eligibility
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Eligibility for unemployment benefits is determined by the state where you earned qualifying wages; however, there are common requirements among the states. You must be unemployed through no fault of your own, although some states will consider situations where you were dismissed or voluntarily quit on a case by case basis. In addition, you must have earned sufficient wages during your base period to qualify. Your base period is typically the first four out of the last five completed calendar quarters. The amount of wages you need will vary by state.
Partial Unemployment
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If your hours have been reduced, you may qualify for partial unemployment benefits. As a rule, your hours must be reduced below the number of hours you customarily work. In addition, as there is generally a one week waiting period to qualify for benefits, the reduction in hours must be an on-going situation. Your weekly benefit amount will usually be calculated by determining your full benefit amount and reducing it by the wages you continue to earn each week, with the resulting difference being paid to you in unemployment benefits.
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Income While Receiving Benefits
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If you qualify for unemployment insurance benefits, but are able to secure temporary employment, you may continue to claim benefits in most cases. If, for example, you're receiving $400 in benefits per week and you work a temporary job that week and earn $300, you may receive the difference in unemployment benefits. In some states, your unemployment benefits will only be reduced by a percentage of your wages. For example your benefits may be reduced by 75 percent of the $300, or $225, leaving you with a benefit of $175 for the week. Check with your state unemployment agency to determine how it manages income earned while collecting benefits.
How to Apply
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If you feel you're entitled to full, or partial, unemployment benefits, you must apply to the agency in the state where you earned wages during your base period (see Resources). If you earned wages in more than one state, your wages can often be combined. Most states allow you to apply over the Internet, via telephone or in person. You'll need contact information for all your employers for the previous 15 months when you apply.
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