1. Who is eligible to collect unemployment? Employees are eligible for unemployment benefits only if they are out of work through no fault of their own. This means that if you have been laid-off, you should be eligible to collect unemployment benefits.
2. Are unemployment rules administered by the federal government? No. Unemployment insurance programs are run by each state. Each state determines who is eligible for benefits, benefit amounts, and the length of time workers can receive benefits.
3. Can I still collect unemployment if I am paid a severance package? The answer to this question depends mainly on the method used to pay out your severance. If your company terminates your employment, but continues to pay your salary as a severance payment for a fixed number of weeks, you might have to wait to collect unemployment until after the payment stops. If you are paid a lump-sum severance payment upon termination, you might be eligible to immediately collect unemployment benefits. In either situation, file for benefits immediately, and then let your state unemployment office make a determination regarding your eligibility.
4. Can I collect unemployment benefits if I was fired due to poor performance? In most states, if you were fired for poor performance (i.e., lack of skills, errors in judgment or failure to meet performance goals) you will still be eligible to collect unemployment. However if your termination is due to “willful misconduct” you will not be able to receive unemployment benefits. Willful misconduct is considered to be behavior that is serious, deliberate and intentionally destructive to the company. However, the determination of what constitutes willful misconduct is determined on a case-by-case basis, and can vary depending upon the state where the termination hearing takes place.
5. I was an independent contractor on a long-term assignment at a firm that just had massive layoffs. Can I collect unemployment? Unfortunately, no. Independent contractors are generally not eligible for unemployment insurance benefits.
6. Are unemployment benefits considered taxable income? Yes, they are! Most states do not automatically withhold taxes from benefit checks, but you may elect to have the tax withheld by the State Unemployment Insurance agency.
7. Can I collect unemployment benefits if I worked part-time? Some states do pay part-time employees benefits. Call your local unemployment office to get information specific to your state.
8. How long will it take to get my first unemployment check? In general, it takes two to three weeks after you file your claim to receive your first benefit check.
9. I think I now want to start my own business. Can I still collect unemployment while I work on my business plan? Some states pay a self-employed allowance, instead of regular unemployment insurance benefits, to help unemployed workers while they are establishing businesses and becoming self-employed. Participants receive weekly allowances while they are getting their businesses off the ground. This is a voluntary program and as of this writing, Delaware, Maine, Maryland, New Jersey, New York, Oregon and Pennsylvania have Self Employment Assistance programs.
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