Episode 04 - It’s UNemployment, not FUN-employment
This week, our hosts explore the confusing process of filing for unemployment. From eligibility to receiving your benefits, Corinne and Natalie break down everything you should know about unemployment insurance, all while enjoying a glass of red wine.
Our Hosts:
Corinne Foxx - @corinnefoxx
Natalie McMillan - @nataliemcm
What we're drinking: 2016 DeLille Roofline Red Blend
INTRO
Corinne discusses her reservations about living alone, while Natalie hypes her up. Natalie reveals the benefits of talking to her plants and her secret to keeping them alive: crystals. Corinne considers getting her first dog and Natalie explains her deep love for her own pup, Zeppelin.
In this episode, Natalie talks about her recent experience reading The Alchemist.
TOPIC
2020 is a unique and confusing time. During this year, the United States has experienced the highest unemployment rate in recent history. Before this year, the highest number of unemployment filings was 696,000 during the week of October 2, 1982. During the last week of March 2020, we reached a new high at 6.6 million.
What Is Unemployment Insurance?
Unemployment Insurance - Started in 1935, unemployment insurance temporarily replaces a portion of wages for workers who have been laid off, as long as they’re looking and available for work.
What are my benefits and how long do they last? - Benefits vary state by state, BUT normally it provides 26 weeks of benefits to unemployed workers and, on average, replaces half of the worker’s previous wages.
What was the CARES Act? Because more people lose jobs during economic downturns, there is room for economic stimulus’ to these programs based on the severity of the recession. I.E. coronavirus or the CARES ACT $2 trillion stimulus package
What is unemployment insurance vs. unemployment? Despite confusion, unemployment insurance and unemployment benefits are the same thing.
Where Does Unemployment Money Come From?
The U.S Department of Labor’s Unemployment Insurance program is funded through taxes paid by state and federal government. This is often-discussed payroll taxes all employers pay.
The rate is 6% of the first $7,000 of each employee’s wages. This rate is called FUTA ( Federal Unemployment Tax Act).
There are only three states that ask employees to contribute to unemployment insurance: New Jersey, Pennsylvania, Arkansas
Federal vs. State Contributions - Unemployment is a “joint” compensation program between the federal and state governments.. US department of labor oversees the system, but overall it is mandated state by state and is run according to state laws. For example, each state gives a different amount of unemployment benefits. States also have a ton of flexibility in determining what benefits they can/will offer.
Replacement Rates - Hawaii’s UI average replacement rate of 55 percent was the highest, while D.C.’s average replacement rate of 21 percent was the lowest. Replacement rate is the amount of your wages lost that is being replaced by unemployment insurance, example is if your weekly wages were $1,000, and you lived in Hawaii, you would be covered for $550 a week.
We recommend knowing your states benefits and replacement rates, individually. We also recommend that you watch what is happening with unemployment federally. For example, right now, there’s an additional $600 stimulus to all claims made during this time. However, this could change at any moment.
How Do I Know If I'm Eligible?
To be eligible for unemployment, you must be:
Totally or partially unemployed.
Such as layoff or furlough, you are not eligible if you quit
Define furlough: temporary layoff with the promise of returning to your job when operations begin /when you’re able to. You are not paid but you keep your benefits.
Fed gov allowing for more wiggle room here, example:
An employer temporarily ceases operations due to COVID-19, preventing employees from coming to work;
An individual leaves employment due to a risk of exposure or infection or to care for a family member
Unemployed through no fault of your own.
Coronavirus, etc. but also injury, sickness, etc.
Physically able to work.
Available for work.
Ready and willing to accept work immediately.
Per your state, meeting the required amount of time worked.
There are requirements by your states whether the amount of money you previously made or the amount of time you previously worked to become eligible
How Do I Apply For Unemployment?
1. Contact your state’s unemployment insurance program (or go to their website)
2. File a claim:
You can file a claim with the state that you worked in. (You can file a claim on the website usually). If you’ve worked in multiple states, you can reach out to the state unemployment office of the state that you live in to help you file claims in other states.
When you’re filing your claim, you will get an option to have federal tax withheld.
What does this mean? The money you receive from unemployment insurance is taxable income. Therefore, when you go to pay your taxes, you’ll have to pay the federal government on that income. You can either pay now or pay later. I suggest that clicking “yes” to this button so you don’t have any surprises at tax time.
3. Prepare the information needed:
Address, dates of prior employment, wages from prior employment
I've Applied For Unemployment, What Should I Expect?
It generally takes two to three weeks after you file your claim to receive your first benefit check/direct transfer.
The amount of money you receive is based off your previous income and your state's replacement rate, plus the tier that you are in.
So my unemployment amount could be different than my friends based on my own income, etc.
Your amount is individually calculated by your income and based on your state’s benefits.
You can receive a check OR a debit card.
Once you receive your debit card, you need to activate the card and set a pin.
Right now most states are using this debit card method
You can use the card as normal, including ATM withdrawals
You can set your card up for a direct deposit to your personal checking or savings if you want to
Depending on your state, you will need to reapply for benefits (aka “certifying your continued benefits”) on a weekly (or every two weeks) basis to ensure that you still meet all requirements for eligibility. If you don’t reapply even for one week, your benefits will cease.
The End of Unemployment
Your goal during this time is find employment again. Natalie explains that when you reapply for unemployment, you check a box that says you will take the job, if you are offered one.
End Of Show
This week, Corinne and Natalie rate the 2016 DeLille Roofline Red Blend against super-sexy, statuesque, rapper, A$AP Rocky.
Hottie Of The Week: A$AP Rocky
2016 DeLille Roofline Red Blend: 8.7/A$AP Rocky
To wrap up the episode, Corinne and Natalie play "More Context." They share a story about their experience at a house party with Drake, when they were only teenagers.
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