How Long Do Unemployment Benefits Last and How Much Will They Pay?

Unemployment insurance is a joint federal-state program that provides temporary benefit payments to employees who are out of work through no fault of their own. If you're applying for unemployment compensation, you might be wondering how much money you might receive and how long those payments might last.

How Much Will You Receive in Unemployment Benefits?

Unemployment benefits are intended to partially replace lost wages, so the precise amount you receive will depend on your prior earnings.

States use different formulas to calculate benefit payments. Some states consider the employee's prior annual earnings; others look at the employee's earnings during the highest paid quarter or two quarters of the base period. The "base period" is usually the first four of the last five completed calendar quarters before you file your claim, but the details vary by state.

If you are found eligible for unemployment compensation, the notice you receive from the state unemployment agency should indicate how much you can expect to receive per week, as well as the maximum number of weeks you can collect benefits.

To learn more about your state's benefit amounts, contact your state's labor department. You can find links and contact information for every state at the Career One Stop site, sponsored by the federal Department of Labor's Employment and Training Administration.

Maximum Benefit Amounts

All states set an upper limit on the total weekly benefit amount. A common formula is to pay half of what the employee used to earn, up to a cap that's tied to the average earnings in that state. This means that employees with higher wages may receive a larger overall benefits check, but a smaller percentage of what they used to earn.

For example, someone who made $1,700 a week might only qualify for the state's maximum weekly benefit of $600, rather than half their wages. On the other hand, a worker who earned $600 a week might qualify for $300, which is a closer match.

Additional Benefits for Dependents

Some states provide an additional benefit amount to employees with dependents. These amounts tend to be small; most states that provide this benefit offer $25 or less per dependent per week in additional benefits. While that may not sound like much, it can add up if you are supporting multiple children or family members.

Reductions for Earned Income

If you earn other income while receiving unemployment, that may reduce the amount of benefits available to you. Of course, if you find a new job, you will no longer be eligible for unemployment. But if, for example, you pick up temporary work for a day or two while you are otherwise unemployed, you must report your earnings to the state unemployment agency, which will determine whether your unemployment benefits should be reduced to reflect those earnings.

Failing to report outside income can result in overpayments, penalties, or even fraud charges, so it's always best to be upfront.

Taxation of Unemployment Benefits

Unemployment benefits are taxable. The IRS treats them as income, and you may elect to have up to 10% of your benefit amount withheld to pay federal income taxes. Some states also tax unemployment benefits. If you don't have taxes withheld during the year, you may need to pay them when you file your return.

How Long Do Unemployment Benefits Last?

In a normal economic climate, most states offer unemployment benefits for up to 26 weeks, or half a year, although a handful of states now offer benefits for fewer weeks. For example, some states have trimmed benefits to 12 to 20 weeks. In times of high unemployment, benefits may be extended through special federal or state programs.

FAQs about Unemployment Benefits

Do you have to look for work while collecting unemployment?

Yes. In almost every state, you must be "able and available" to work and actively searching for a new job. This usually means applying for a certain number of jobs each week and keeping records of your job search.

Some states may waive this requirement in certain situations, such as when unemployment is very high or during a declared emergency.

Can you work part-time and still receive unemployment?

Often, yes. Many states allow you to work part-time and still collect benefits, but your weekly payment will usually be reduced by the amount you earn. The key is to report all wages to the unemployment office. If you fail to report income, you may be required to pay back benefits or face penalties.

Are unemployment benefits the same in every state?

No. Each state runs its own unemployment insurance program under federal guidelines. That means the amount of benefits, the duration, and even some eligibility rules differ from state to state. It's always best to check directly with your state's unemployment office for the most accurate information.

What if my claim is denied?

You have the right to appeal. The denial letter you receive will explain why your claim was rejected and how long you have to file an appeal. At this stage, many people choose to work with an employment lawyer to improve their chances of success.

Contact an Unemployment Lawyer

Applying for unemployment benefits can sometimes be confusing, especially if your claim is denied or your employer challenges your eligibility.

If you need help filing an application, appealing a denial, or making sure you're receiving the correct benefit amount, contact a knowledgeable employment lawyer right away to discuss your options. An attorney can explain your rights, represent you in hearings, and help you maximize the benefits available under the law.