Cnn Money Unemployment

How to Calculate Unemployment

T.A. Workman (http://www.ehow.com/members/DS_T.A.Wo14930.htm

Cnn Money Unemployment Instructions on understanding the terms and calculating unemployment benefits.

Millions of Americans draw unemployment annually. When unemployed, the wait to receive benefits or even a determination of benefits can seem like an eternity. Claimants can estimate their expected benefits; however, the experience is often equivalent to doing their own taxes. The key is to understand the terms and know the state requirements and formulas.

The Unemployment Situation in America In December of 2008, CNN reviewed the unemployment rates in America. Their findings revealed record unemployment numbers from coast to coast and in between. The overall national rate was at 6.7% and 3 million workers had exhausted their allowable unemployment benefits. Automotive driven Michigan led the nation's woes with a 9.6% unemployment rate. Experts believe this number will get worse before it gets better. The place that gave birth to the automobile is feeling the industry's economic struggles in a major way. On the East Coast, Rhode Island carries a 9.3% unemployment rate. A factor many journalists contribute to governmental challenges like tax rates and the inability to attract "big business." Across the land, western coastal states like California and Oregon also top the scales. California ended 2008 with an 8.4% rate and Oregon followed closely with 8.1%.

Collecting Unemployment Benefits Workers experiencing job loss will want to consider options like unemployment benefits and other government-funded relief. Unemployment programs exist on the federal and state level administered by the local state agencies. A worker, having lost their job by no fault of their own, should locate the nearest unemployment office and file for benefits.

After filing, the unemployment office will determine if a worker qualifies, their weekly benefits and contact the employee. A claimant can decipher the formula used and estimate their expected benefit. However, the formulas and terms can be very confusing.

The Base Period "Base period" is probably the most important definition to know. The base period determines if a worker financially qualifies for unemployment benefits and how much they will receive. Defined, a base period is the first four calendar quarters out of the last five completed quarters. This concept is easier to understand when broken down in steps. 1) Quarters" The calendar year is divided into four quarters consisting of three months each First Quarter = January 1 through March 31 Second Quarter = April 1 through June 30 Third Quarter = July 1 through September 30 Fourth Quarter = October 1 through December 31 2) Completed Quarter" This is the last full quarter worked. If a worker is laid off and their last day of work was July 15, their last full quarter worked was the second quarter which ended June 30. 3) Last Five Completed Quarters" Using the above scenario, a claimant would count backwards to the beginning of the last five quarters worked. Job ended July 15 Last completed quarter was the second quarter Count backwards five quarters (second, first, fourth, third, second)

Replace the words with actual dates (fourth = 10/1/07 to 12/31/07)

4) Base Period" Having determined the last five completed quarters above, reverse the order to find the base period (second, third, fourth, first). The very

first date and the very last date constitute the base period.

Other Terms There are a host of other terms used by unemployment officials that can confuse the worker attempting to figure benefits. Some states refer to a "high quarter." Simply defined, this the quarter (three month period per above explanation) during the base period in which the highest wages were earned. Applicants will commonly see the terms "benefit period" and "benefit year." The benefit period is the 52-week period beginning when the claim is filed. The benefit year ends 52 weeks after the claim is filed. These terms do not refer to a normal calendar year. For example, if a claimant files for unemployment on April 1, their benefit year ends on March 31. Another important set of definitions are "no fault" and "just cause." These terms refer to the reason the employee is without a job. Employees are only eligible for unemployment if they are jobless by "no fault" of their own. Plant closings and lay offs constitute "no fault" situations. Quitting or getting fired for absenteeism are examples of "just cause" by the company. Ultimately, the state's unemployment officials will decide the cause and determine if the employee was at fault. However, the employee and employer will both have the opportunity to appeal the decision in most states. Sample Calculations Once a claimant understands the terms and the formula, they can use their pay stubs to calculate their expected weekly unemployment benefits. Here are some examples:

A worker earns a gross salary of $400. per week The worker was consistently employed at this rate for five quarters The worker's job ended by "no fault" on July 15 The base period is April 1 through March 31 (see What is a Base Period) Wages earned during the High Quarter were $5, 200. (See Other Terms) The worker has three dependants Using Michigan's Formula Multiply high quarter wages of $5, 200 by 4.1% (.041) = $213.20 Add $6. for each dependant ($213.20 + $18.) = $231.20

The worker can expect to receive about $231.00 per week in benefits

Using Rhode Island's Formula Multiply high quarter wages of $5, 200. by 4.62% (.0462) = $240.24 Add 5% of benefit ($12.) for each dependant = $240.24 + $36. = $276.24 The worker can expect to receive about $276.00 per week in benefits Again, each state differs in their formulas. Many other variables apply and applicants should visit their state's unemployment website or local unemployment office for further details. Other Factors Formulas for calculating unemployment benefits only apply if the worker is first determined "eligible." As previously stated, the reason for job loss is a deciding factor as is the amount earned during the base period. In short, a worker needs a history of employment and a valid reason for their job loss. The difference in state guidelines can greatly affect unemployment benefits. Some states will offer alternative formulas for arriving at weekly benefits if the worker doesn't meet the minimum financial requirement during their base period. Other states (and the federal government) offer extended benefits under certain circumstances. Recipients should know unemployment benefits are taxable and the issuing state may or may not have deducted taxes. If no taxes are taken out of the benefit checks, a claimant may be in for a shock at tax time. Claimants should discuss this important fact with their unemployment counselor. All states have a maximum weekly benefit amount. If calculations reveal a weekly benefit over the maximum allowable, recipients will only receive the maximum. Resources: http://money.cnn.com/pf/features/lists/state_unemployment/ CNN on Unemployment Rates http://www.associatedcontent.com/article/458305/will_michigan_survive_the_high_unemployment.html?cat=55 Why Michigan Unemployment Rates are High http://www.wpri.com/dpp/news/local_news/local_wpri_ri_unemployment_reaches_25_year_high_20081121 Why Rhode Island Unemployment Rates are High http://www.michigan.gov/uia/0, 1607, 7-118-26831-82227--, 00.html Michigan Unemployment Insurance Agency

http://www.dlt.ri.gov/ui/uifaq2.htm Rhode Island Unemployment Insurance Agency

Next page: Cnn Finance Futures

Bookmark/Share This Page:

The Great Divergence: America's Growing Inequality Crisis and What We Can Do about It

CNN Money

Cnn Money Unemployment

How to Calculate Unemployment

Cnn Money Unemployment News

Money - Pink Floyd HD (Studio Version)

Money - Pink Floyd + Lyrics

The Drums - Money

Money - Pink Floyd (Pulse)

Pink Floyd - Money (Official Music Video)

money (thats what i want) - BARRETT STRONG

Fabolous Ft. Nicki Minaj - For The Money (There Is No Competition 2)