Filing for unemployment if you’ve lost your job because of coronavirus
When the coronavirus overtook the world, millions of people lost their jobs. And while the U.S. Bureau of Labor Statistics reported an additional 661,000 jobs in September, the country’s unemployment rate remains at a striking 7.9% (October’s data has yet to be released), and the climb toward economic normalcy continues to be both slow and strenuous.
Snagajob is here to help in any way we can; if you’re on the job hunt, take advantage of our blog resources and job searching tools. And in the meantime, if you’re navigating unemployment’s murky waters, read on for our simple “How to” guide.
There’s nothing fun about losing employment, but understanding what you can claim (and how to do it) can help lessen the blow while you get back on your feet.
Let’s get started.
Unemployment Demystified
Filing for unemployment can feel daunting. It’s widely perceived as a complicated process and, of course, carries the media-spawned idea that one who files for unemployment has truly “hit rock bottom.”
Nonsense.
Not only has filing for unemployment become commonplace given the times, it’s also an appropriate answer to unforeseen events. No one really expects to suddenly lose their job; however, this doesn’t prevent it from happening.
So again, before delving into the ins-and-outs of unemployment, it’s crucial to look at it the right way. Don’t think of unemployment benefits as some sort of desperate lifeline – quite the opposite. It’s nothing more than a little bit of aid, helping people to keep on keeping on as they become best friends with job searching.
How unemployment benefits work
This is where filing for unemployment can seem tricky. Truthfully, the process is also largely dependent upon the state you live in. For example, filing for unemployment in Florida can be wholly different than filing for unemployment in California; it’s best to be aware of this.
A state uses many different factors to decide how much you’ll receive each week. In particular, your full-time or part-time salary from last year will be reviewed.
Typically, you’ll be afforded anywhere from 50-75% of your past income. The federal government limits unemployment to 99 weeks, but most state unemployment agencies will have shorter limits. Plus, these unemployment laws? Changing all the time.
It’s frustrating, to say the least, but also underscores the importance of doing your due diligence. With ever-changing unemployment stipulations and varied rules pending the state you reside in, keep yourself in the know.
And stay attuned to the news. After all, what we thought would be a few months of less-than-normal living has turned into much, much longer. You might recall receiving a federal stimulus check earlier this year; while talks about a second stimulus package have ceased until after the election, the idea isn’t entirely off the table.
We can’t guarantee a second stimulus but, given the times, it’s necessary to stay knowledgeable of any changes being made by government agencies in order to help Americans continue navigating the unwelcomed impact of COVID-19.
Am I eligible?
If you’ve made it this far, chances are you’re probably eligible. Especially if you lost your job as a result of the pandemic.
However, we do want to be comprehensive, so there are a few scenarios where you wouldn’t qualify for unemployment. It all comes down to how you lost your job. Unemployment benefits extend to those who unexpectedly find themselves without work. If you intentionally left your position, then you probably aren’t eligible because leaving was a choice.
Same goes for being fired. Sure, probably not your choice, but if there was cause for your termination then you won’t be eligible for unemployment relief. In the past, self-employed workers have also been ineligible. Check your state’s requirements, though, because the pandemic might’ve changed this.
When President Trump signed the 2020 Coronavirus Aid, Relief, and Economic Security (CARES) Act, it expanded states’ ability to provide relief to unemployed Americans, including those typically ineligible for benefits.
While some of the programs created under the CARES Act have expired, Trump issued multiple executive orders in August to extend relief through the duration of the pandemic.
Also note that most states require you to show that you were employed for a specific period of time (often between 3-6 months) in order to be eligible for unemployment. Ultimately, your best bet is to review your state’s individual requirements.
You will need to still pay taxes
Yes, unemployment benefits are still “income,” which means you’ll need to pay taxes. Keep this in mind. Being unemployed is already stressful enough without being surprised by owed taxes at the end of the year.
At the very least, you’ll owe taxes at the federal level. You might owe the state too, but we’ll point back to our oft-repeated idea in this guide: Research your state’s laws and requirements. There are far too many variables when it comes to unemployment benefits. Not to say it has to be difficult but, like anything in life, it requires some effort.
Since you won’t report this income until you file your tax return upon year’s end, keep record of the payments you receive. It will make documentation during tax season that much easier.
The Filing Process
Do you meet your state’s requirements for filing? Perfect.
File as soon as possible. It can be tough when dealing with the emotional fallout from a layoff, but the faster, the better. This gets your application into the system ASAP so that you can start earning wages again.
The coronavirus pandemic has made expediency all the more important. In spring, unemployment agencies became overwhelmed with applications. And while things are improving, there’s still the possibility of a delay in processing your application.
When applying, have your social security number, address, employer information, phone number, and two years of work history at the ready. There will also be questions about your dates of employment and termination date. You will need to submit proof of previous employment via 2-3 pay stubs.
Most states recommend you apply online for aid during the pandemic.
Appealing the decision (if needed)
There is an appeals process in the situation that your initial claim is denied. Read the rejection letter carefully, noting the reasoning as well as how to appeal the decision.
Most likely, you’ll find yourself providing a written appeal. You might also be asked to give contact information for your former employer. This is necessary so that the employer can validate your unemployment claim.
Keeping things current
You’ve probably gathered: Unemployment benefits come with a lot of rules. Follow them to keep your aid and avoid stiff penalties.
For obvious reasons, it’s illegal to collect unemployment when you have a job. Once your search results in new employment, let the state know immediately.
Some states might let you work part-time while collecting unemployment, but that’s a big might. Follow your state’s rules and avoid unnecessary hassle.
We know you don’t want to be in this situation to begin with, so treat unemployment as a way to help you get back in the game. And getting back in the game means finding a new job. Your state will require you to look for jobs while receiving unemployment benefits. You might need to call in and report on your applications and interviews.
Keep proof of these just in case. If a job opportunity falls through and you need to keep receiving benefits, some states might request documentation. It’s not a matter of prying into your business; it’s simply about making sure that funds are being given to people who need them.
With many still reeling from the effects of COVID-19, state agencies are doing what they can to help those facing unemployment. Not having the financial security of a full-time job can be detrimental to one’s personal health. Always take time to decompress and remember that we’re all weathering this storm together. There are plenty of resources available to help you get back on your feet.
Have any other questions about filing for unemployment? Let us know!