Unemployment Insurance Facts

Because of the increasing necessity to protect your home from foreclosure you are in a position of having to seek out information; you need to know the unemployment insurance facts. Unemployment insurance may be the protection you are searching for, but you have to be sure.

Here are some of the basic unemployment insurance facts for you to consider.

Unemployment is Rising and Increasing the Need for Unemployment Protection

Unemployment in the United States is increasing each and every month as nearly two million jobs were lost in the first 11 months of 2008. More jobs are expected to be lost in 2009 as projections are of another two millions jobs to vanish in the upcoming year.

Facing the challenges of unemployment requires planning ahead. There are many ways to get through the tough times caused by the loss of your job. Most people attempt to put away money in their savings account for just such an occurrence. This is one type of protection, but it can be difficult to do and unemployment for a couple of months can really cripple your savings. Unemployment insurance can give you added protection through these times at an affordable cost.

Government Unemployment Assistance May Not Be Enough

The average pay out per month for state unemployment assistance is only $378. While this could come in handy and does not cost you a monthly premium, you have to decide if it will be enough to help you out with your mortgage and other monthly bills.

The Unemployment Insurance Market is Growing

This means you as a consumer now have available to you more complete and flexible coverage options and at better rates. The market is also reaching far into the online insurance industry and allows for you to seek out providers and compare their rates and policies.

Unemployment Insurance Rates Are Straightforward

Compared to other lines of insurance such as life insurance and car insurance, the premiums for unemployment insurance are not as complex. Unemployment insurance rates are based upon the amount of coverage you are seeking. They have nothing to do with your credit score, medical history (unless you also get disability insurance) or driving record. There is no magic formula to calculate your premiums-everyone is equal and you get what you pay for.

While there is still more to learn about unemployment insurance rates, you now have a basic understanding of how this type of insurance works and how it may help you out in tough financial circumstances. Unemployment insurance can be an affordable and practical way to protect your home in these difficult economic times, though you should not go into the transaction blindly.

Collecting Unemployment Insurance Benefits

Introduction

With the economy as it is today, people everywhere are facing job cuts and layoffs. If you are currently unemployed, you may be eligible to collect unemployment insurance benefits while you are out of work. The purpose of unemployment insurance is to provide people who have become unemployed through no fault of their own with money payments for a set period of time until they find a new job

Eligibility for unemployment insurance is established by general Federal guidelines. Additional eligibility requirements are set by each individual state, such as money amounts and period of pay. These requirements will vary from state to state, but it helps to know some of the general guidelines for collecting benefits. This article explains some of the more general requirements for unemployment eligibility.

Eligibility Requirements for Unemployment Benefits

A person who files for unemployment insurance benefits must meet several eligibility requirements. In order to be eligible, you must:

Be unemployed, either totally or partially

Be monetarily eligible (received sufficient wages during the previous employment- this varies by state)

Be unemployed through no fault of your own (being laid off = no fault)

Meet weekly requirements each week benefits are collected. These weekly requirements include: Being physically and mentally able to work; actively seeking employment and being ready to accept work; filing weekly claims in a timely manner

In some instances, be approved to attend training courses before benefits can be collected. If you are already attending a form of training, you might not need to fulfill the "seeking employment" requirement listed above.

Probably the most important factor here is being unemployed "through no fault of your own". This means that you cannot collect unemployment if you have been fired or voluntarily left employment (i.e., if you quit). However, in some instances you may still be eligible if you voluntarily ceased employment for "good cause", which is determined by state authorities through a hearing. Finally, benefits collected through unemployment must be declared in tax statements.

Disqualification from Unemployment

Several factors may disqualify you from receiving unemployment insurance benefits. You might be disqualified if you:

Quit your job without having "good cause"
Were fired or discharged for misconduct
Were released due to illness (though you may be eligible for disability)
Resigned in order to get married
Were self-employed
Were involved in a dispute over labor issues
Attended school

If any the above applies to you, check with your state's Unemployment Office to see if there are any available remedies or options for you. You will likely be subject to a scheduled interview to provide the office with more details of your separation. Benefits could be reduced or denied accordingly.

When and How Do I File? Documents and Information Needed for Filing

You should file for unemployment benefits as soon as possible after severance from work. It is to your advantage to do so quickly because it usually takes at least a few weeks before you collect your first check. Also, you need to give the Unemployment Office some time in case they need to conduct follow-up interviews.

Every state has an Unemployment Office which you may contact over the phone or through their website. You will need the following basic information and documents for filing:

Your social security number
If you are not a U.S. citizen, an Alien Registration Card
Your full mailing address
A phone number where you can be reached
Contact information of past employers from the previous two years (i.e., names, addresses, dates of employment)

How Much Will I Be Paid? Can My Collection Period Be Extended?

Both the amount you will be paid and the number of weeks you may collect are subject to change, and vary from state to state. Usually the amount you will be paid is half of your earnings, or half of the state's average weekly earnings.

For most states, the maximum number of weeks you may collect a check is 26 weeks, though several states have a maximum of up to 99 weeks. Also, Congress often changes the deadlines for collection. For example, Congress recently voted [http://www.washingtonpost.com/wp-dyn/content/article/2010/04/12/AR2010041203337.html] to extend collection periods in certain instances where time has lapsed.

Again, check with your local office to determine the amount of wages you are entitled to receive and the number of weeks after unemployment that you are eligible.

Conclusion

The times can be demanding, and authorities are doing what they can to assist people while preventing abuses of the unemployment system. If you have recently become unemployed, check to see what options you have available under the general guidelines given above. If you are currently employed, be mindful that if you leave your job, the way you do so can affect your unemployment eligibility.

If you need further assistance, contact a lawyer through LegalMatch.com who can explain these matters in-depth.

Ken LaMance is the Corporate Counsel at LegalMatch, an online client-lawyer matching company based out of South San Francisco, California. LegalMatch is fast, free, and confidential. LegalMatch is America's original attorney/client matching service and is not a referral service. When a consumer presents their issue to LegalMatch, our system matches the consumer's case to LegalMatch lawyers in their city or county based on the specifics of the consumer's case, lawyer's location, and area of legal practice. LegalMatch also offers a number of useful resources like an online law library, tips, law blog, and forums ( http://forums.legalmatch.com/ ) on nearly every topic.

Private Insurance to Top Up Inadequate UK Unemployment Benefits

At a time when our cash strapped Government are urging people to stand on their own two feet and not to rely on the State to provide, those who can, are considering their options. The greatest concern for people in both the public and private sector is unemployment and how to cope financially if are out of work. For those with only limited savings to fall back on, because of the pitifully low level of state benefits, a private provision to top these up has become a priority. The UK insurance industry has responded with several products people can buy directly on-line to meet this need.

Unemployment Protection Insurance is designed to enable the customer to continue repaying their debts, such as mortgages, loans and credit cards, if they have to stop working due to accident, sickness or unemployment. The BBC reported on 22 November 2010 that some people are putting their homes at risk 'due to 600 debts.' This is both frightening and so easily avoided by anyone who has the foresight to grab themselves an Unemployment Insurance policy when it is available to them.

But there is a problem. Many people only think about buying an insurance policy to cover their debts and other living expenses when it is too late. This is because, when taking out the policy, they must be able to truthfully state that they did not expect to be unable to work. Otherwise the Insurance Company would have every right to refuse to pay. So, if a firm or organisation has not made any announcements about laying people off, it is well their employees giving serious thought to this right now.

The better Unemployment Protection Insurance policies will offer a route for the customer to purchase the type of cover that is best value for them. In this regard, it is worth noting, that covering mortgage repayments and a small amount of household expenses each month is usually much cheaper than asking for, say, 1000 monthly benefit that is not linked to any particular repayments. The later is the province of short term Income Protection Insurance, good, but rarely the cheapest to buy.

How much cover?

Anyone thinking about Unemployment Insurance should consider how they would cope if their income stopped or was reduced due to accident, sickness or unemployment. They must look at their own financial circumstances, including any other insurance cover or savings they already have. The great majority of people taking out this cover know they could cope if they were out of work for a month or two*. However, if this stretched out to six or eight months, they would be in deep trouble.

Savings can meet every day expenses such as food and fuel for quite a while, provided the weight of large monthly bills (typically mortgage repayments, rent or loans) can be shouldered by an Unemployment Protection Insurance policy. Therefore this is usually the money saving approach that most people take when selecting their benefits, they buy a policy that will pay their important bills until they are back at work.

Who can apply?

These policies are offered to anyone over 18 and under 65 who live and work in the UK. Usually this cover can also be bought by people who are part time (working at least 16 hours a week) as well as the self-employed or individuals on fixed-term contracts,

What is covered?

This insurance pays the policyholder the sum they choose each month as a monthly benefit for up to a year or until they go back to work. It is possible to buy a policy that pays out for up to 2 years, however as the average spell of unemployment at this time is up to about 8 months*, most opt for a cheaper 12 month policy. It is possible to claim more than once a year on this type of insurance.

What is not paid?

Unemployment Insurance will not cover any medical conditions the person knew about at the start

of their policy. The insurers also exclude pregnancy or any absence due to self harm. In respect of unemployment, these policies will not pay out if the policyholder resigns or accepts voluntary redundancy. Equally, no payment will be made if the person loses their job due to doing something that breaks the conditions of their employment contract (e.g. misconduct or theft).

For unemployment benefits to be paid, most insurers impose a deferment period. This usually means that the policy has to be in force 90 or 120 days (providers vary) before the policyholder can claim.

Easy to cancel

Premiums are usually collected monthly by direct debit and if the policyholder decides they don't need the cover any more, they can simply cancel their direct debit. This will end the policy immediately and without penalty.

Buying

In a world where future employment prospects are uncertain, for anyone who does not have enough saved to meet their bills for six months to a year out of work, this cover is certainly worth serious consideration. For the lowest prices look for the specialist providers on-line.

To avoid the hard sell from tele-sales brokers, it is wise to only get quotes from companies who will give an indicative price before the applicant has to complete their telephone number. There are some that purport to be comparison web sites to induce the customer to complete their contact details. These are then immediately sold on to a company with commission driven sales agents who don't take no for an answer!

Price

Dennis Haggerty from specialist i:protect insurance commented, "Expect to pay 20 to 40 per month for a policy that pays out 1000 per month if you are unable to work. It is important to note, unlike car insurance, Unemployment Insurance costs progressively more as you get older. This has come about because it is proving much harder for the over 50's to find work and health issues become worse with age, both have pushed up prices"

Unemployment Insurance may not suit everyone. However it is a good value option for young families and individuals who would rapidly find themselves in serious debt if they were out of work for any length of time. The key is not to delay applying for this insurance until an employer raises redundancy concerns. By then it will be too late for employees to cover themselves in respect of any job losses that may occur.

*Industry data from Financial Services Forum Oct 2010.

Dennis Haggerty FCII M IDM Marketing Manager iprotectinsurance.co.uk specialises in the supply of low cost on line Unemployment Insurance, Lifestyle Protection, Income Protection and Mortgage Payment Protection Insurance.

The key to the success of i:protectinsurance has been the focus upon supplying a product range that is exceptional value for money because it is available exclusively on-line. This eliminates the usual costs associated with selling insurance: telesales teams, direct mail, middlemen and commission.

The i:protectinsurance product range includes Unemployment Insurance Income Protection / Lifestyle Protection, Mortgage Payment Protection, Gadget Insurance and Mobile Phone Insurance called Phone PLUS

Payroll Law for Non Profit Organizations - The Unemployment Insurance Reimbursement Method

One of the least understood payroll laws for non profit organizations is the reimbursement method for unemployment insurance. Many states allow non profits to elect the reimbursement method in lieu of paying unemployment insurance tax on every payroll. This article will provide information on the reimbursement method for unemployment insurance in New York and how non profits can apply for the reimbursement method thus saving on their payroll taxes.

What is the reimbursement method?

New York State payroll law allows for non profit organizations covered under section 501(c)(3) of the internal revenue code to elect not to pay in to the unemployment insurance fund, but rather reimburse the state on a dollar for dollar basis for benefits paid to unemployed workers. This means that the employer no longer pays the unemployment tax on payroll but should there be an unemployment claim to their account, the employer will pay the state directly dollar for dollar for the benefits the state paid to an unemployed employee.

Is the reimbursement method worthwhile?

Electing the reimbursement method over the contribution method is a difficult decision non profits have to make. Some of the things to look at are the unemployment claims history against your organization and the future behavior of the organization such as: (a) Are you hiring or firing employees? (b) The potential cost of unemployment claims versus the cost of tax contributions based on current payroll and finally (c) Your tax rate and current account balance with the state.

What is important to remember is that no matter what option you choose, there is no guaranteed way to determine that your selection will save you money in the long run. We have seen organizations with no unemployment claims for years and then switched to the reimbursement method. Then, 3 or 4 claims were filed against their account in one year. On the other hand, even in the above case, thousands of dollars can be saved over the long run. Consider the case of an organization with 50 employees, their annual cost of unemployment insurance at a rate of 4.1% under the contribution method would be $17,425 per year ($8,500 base payroll * 4.1% * 50 employees). Assuming that one or two employees will file for unemployment benefits per year, and the average employee's payroll is $25,000 per year, the benefit charged to the account under the reimbursement method would be less than $12,500.00 per year.

Once I elect, can I switch from contribution to reimbursement or vice versa?

Yes, but only at the beginning of each calendar year. Keep in mind that switching will not help you with previous claims. You still have to pay your full balance owed for claims filed under the reimbursement method.

If I switch to reimbursement method, what happens to my account balance with the state?

The account balance that you had with the state under the contribution method is kept until such date that you choose to re-elect the contribution method. If you have a positive balance, you cannot use it towards your reimbursement plan; neither can you request the state to reimburse you the amount of the positive balance.

What if my account balance is negative when I switch to the reimbursement method? The balance is kept on account until such time that you choose to re-elect the contribution method. One thing to consider is that if you have a negative balance, your rate of unemployment claims are probably high and chances are that the reimbursement method is not for you.

What happens if I switch either way in the middle of a claim?

Whether the state will view your claim as a reimbursement or contribution claim, depends not on the time the claim is made or paid, but on the base period used to calculate the employee's unemployment benefits. The base period is the payroll period upon which the worker's unemployment benefit amount is calculated, generally, the highest quarter wages paid to the worker in the first four of the last five quarters.

For example, if the base period used to calculate an employee's unemployment benefits is July through June, and you switched to the reimbursement method in January, 50% of the claim will be paid under the contribution method and 50% under the reimbursement method.

Keep in mind that switching will not help you with previous claims. You still have to pay your full balance owed while you were covered the reimbursement method.

How does one apply for the reimbursement method?

A request to elect the reimbursement option can be made when registering with the Department of Labor as an employer using form NYS-100N (New York State Employer Registration for Nonprofit Organizations) filed prior to your first payroll. In addition, the request can be submitted in writing to the Unemployment Insurance Division before the beginning of the calendar year in which it is to apply, or within 30 days after the calendar quarter in which the non profit organization or governmental entity becomes liable under the Unemployment Insurance Law.

The request could be mailed or faxed to the address and fax number below. Remember to include your federal tax ID, unemployment registration number and a copy of the organizations notice of 501(c)(3) status from the IRS and include your federal tax ID and unemployment insurance registration number;

New York State Department of Labor, Unemployment Insurance Division, State Office Building Campus, Albany, New York 12240-0322. Fax: 518-485-6172.

Copyright 2010 - PayMatic Payroll Service

PayMatic Payroll Service is a full service payroll bureau based in Rockland County, NY and has been helping nonprofit organizations work through the maze of payroll and unemployment laws for over 10 years. Because unemployment insurance law in New York is so complex and many organization administrators are busy enough as is, we found that many non profits do not take advantage of these laws and are either confused or are doing thing wrong.

To answer this need, PayMatic Payroll thoroughly researched New York's Unemployment Insurance Law, analyzed scores of different organizations of various sizes and prepared this report to help organizations make informed decisions.

Please visit us at http://www.paymaticinc.com for more information.