Understanding The Way In Which States Calculate Unemployment Benefits

What Are Unemployment Benefits

Unemployment benefits are a beneficial program run jointly by both federal and state governments to aid people who have lost their jobs or are forced to quit.

At times, some situations make it harder to find another job. Let’s take this global pandemic of coronavirus as an example that has significantly affected the global economy, making many individuals unemployed.

Under such conditions, these unemployment benefits act as a partial replacement of wages. So if you’re someone who has lost your job, you might be eligible for unemployment benefits.

However, there are two things to remember before you claim these benefits. First, the amount that you will receive entirely depends upon what had earned prior to unemployment. Secondly, these unemployment benefits are only paid for a few weeks, which may vary depending upon the state you reside in.

Who Is Eligible For Unemployment Benefits

As we mentioned above, there are certain criteria that an unemployed individual has to meet to claim unemployment benefits. Not everyone unemployed can avail of these temporary payments. For example, individuals who were fired due to some serious misconduct or people who have quit their jobs for no significant reason cannot avail of unemployment benefits. Following is the general criteria for eligibility for unemployment benefits:

You are eligible if you’re unemployed through no fault of your own.
Depending upon the law of the state you are residing in, and you must have worked a minimum number of hours and earned a minimum amount of wages before being unemployed.
You must able to work, available, and actively looking to work.
If you have a job offer that you cannot accept, you won’t receive any benefits.

Those individuals who find themselves eligible for claiming unemployment benefits have to apply for these benefits as per the procedures prescribed by their states.

Solo entrepreneurs who had to close down their business cannot often file for unemployment benefits, however, they can still claim other benefits from the government. That’s exactly why it is always necessary to keep your books in order so that when the time comes, you can file immediately. If you can’t manage your books on your own then you can hire the best online bookkeeping services provider, like Overdraw, to manage your books for you.

How Are Unemployment Benefits Calculated

Most of the eligible people claiming unemployment benefits are confused about how unemployment benefits are calculated. Unfortunately, there’s no easy way to calculate the exact weekly benefits amount since each state has a different rate to determine your receivable benefits and for how long you’ll be able to collect them.

This article will discuss how all 52 states calculate unemployment benefits, respectively, along with the stats. But first, here is a list down of terminology involved in unemployment benefits.

Base Period

The base period method for calculating unemployment benefits is based directly on your past earning history. States see and evaluate how much you managed to earn in the preceding four quarters before the last immediate quarter.

Sometimes, this method doesn’t apply to a lot of individuals. So, states use an alternate method for them. In this method, the earning in the preceding four quarters is looked at to check whether you qualify for unemployment benefits or not.

Earnings Disregard

Part-time earnings can be a contentious issue when it comes to securing unemployment benefits. This is exactly why there is an exemption that is practiced by certain states to disregard a portion of your part-time earnings when calculating unemployment benefits.

This way, the state effectively ensures that you take a lesser hit due to your reduced earnings.

A certain will disregard $50 for every $300 you earn. So when they calculate your unemployment benefits, it will be based on $250, which is the amount that includes the exemption. This will effectively ensure that you don’t get disadvantaged when you look for part-time work while still unemployed.

Benefit Weeks

You can quickly judge this with the name; benefit weeks are the number of weeks you can avail yourself of the unemployment benefits. A good majority of total states are providing benefits worth 26 weeks of unemployment benefits.

Also, suppose you’ve already run out of the normal benefits. In that case, you can still avail of an additional 13 weeks of unemployment benefits due to the Pandemic Emergency Unemployment Compensation provided by The Cares Act.

Weekly Benefits

This is simply the amount an individual will receive weekly as unemployment benefits. As we mentioned above, the weekly benefits amount that an individual would receive is determined by each state, respectively.

Now let’s talk about how each state calculates unemployment benefits for its residents.

How Do States Calculate The Unemployment Benefits

Alabama

Sum offered in each weekly benefit: 3.8% of your average quarterly earnings in the two highest-paid quarters of the base year.
Minimum – Maximum Benefit range: you could receive a minimum weekly benefit of $75, which goes up to a maximum of $275.
Disregard amount/period: 33% of the total earning made weekly.
The coverage period is up to 14 weeks.

Alaska

Sum offered in each weekly benefit: The total income earned in the four quarters of the last five preceding quarters.
Minimum – Maximum Benefit range: You could receive a minimum benefit of $56, which could go up to a maximum of $370.
Disregard amount/period:$50 + 40% of the earnings made above $50
The coverage period is up to 26 weeks.

Arizona

Sum offered in each weekly benefit: 4% of the earnings made in the highest-paid quarter of the base period.
Minimum – Maximum Benefit range: You could receive a minimum weekly benefit of $187 up to a maximum of $240.
Disregard amount/period: $30
The coverage period is up to 26 weeks.

Arkansas

Sum offered in each weekly benefit: 3.8% of the average earnings which an individual has managed to earn over the preceding four quarters in the base period.
Minimum – Maximum Benefit range: You could receive a minimum weekly benefit of $81 up to a maximum of $451.
Disregard amount/period: 1/4^th of the average weekly benefit.
The coverage period is up to 16 weeks.

California

Sum offered in each weekly benefit: Based upon the earnings made in the highest quarter of the preceding four quarters.
Minimum – Maximum Benefit range: You could receive a minimum of $40, which goes up to a maximum of $450.
Disregard amount/period: Disregard amount in California depends upon whichever value is greater among $25 and 40% of the earnings made.
The coverage period is up to 26 weeks.

Colorado

Sum offered in each weekly benefit: Depends upon whichever value is greater among 1/5^th of the average weekly earnings in the preceding 12 months and 1/6^th of the average earnings made in the two continual highest quarters.
Minimum – Maximum Benefit range: In Colorado, you could receive a minimum weekly benefit of $25 up to a maximum of $649.
Disregard amount/period: 1/4^th of total weekly benefit.
The coverage period is up to 26 weeks.

Connecticut

Sum offered in each weekly benefit: 3.8% of the average of total earnings made in the last two highest quarters.
Minimum – Maximum Benefit range: In Connecticut, you could receive a minimum benefit of $15, which can go up to $631.
Disregard amount/period: 33% of the weekly earnings.
The coverage period is up to 26 weeks.

Delaware

Sum offered in each weekly benefit: 2% of the total average earnings made in the last two highest quarters of the base period.
Minimum – Maximum Benefit range: you could receive a minimum weekly benefit of $20 going up to the maximum of $400.
Disregard amount/period: Whichever amount is greater than $10 and 1/2 of your weekly benefit.
The coverage period is up to 26 weeks.

District of Columbia

Sum offered in each weekly benefit: 3.8% of the earnings made in the highest quarter of the base period.
Minimum – Maximum Benefit range: You could receive a minimum weekly benefit of $50, which could go up to a maximum of $444.
Disregard amount/period: $50 + 33% of the wages.
The coverage period is up to 26 weeks.

Florida

Sum offered in each weekly benefit: 3.8% of the earnings made in the highest quarter of the base period.
Minimum – Maximum Benefit range: You could receive a minimum of $32 as weekly benefits, which could go up to a maximum of $275.
Disregard amount/period: $58 (8 x Federal hourly minimum wage).
The coverage period is up to 12 weeks.

Georgia

Sum offered in each weekly benefit: 2.3% of the earnings made in the highest two earnings quarters of the base period or 4.7% of the earnings made in the highest-earning quarter.
Minimum – Maximum Benefit range: You could receive a minimum weekly benefit of $55, which could go up to a maximum of $365.
Disregard amount/period: $50.
The coverage period is up to 20 weeks.

Hawaii

Sum offered in each weekly benefit: 4.7% of the earnings made in the highest-earning quarter of the base period.
Minimum – Maximum Benefit range: you can avail of minimum weekly benefits of $5, which could be up to a maximum of $648.
Disregard amount/period: $150.
The coverage period is up to 26 weeks.

Idaho

Sum offered in each weekly benefit: 3.8% of the total earnings made in the highest-earning quarter of the base period.
Minimum – Maximum Benefit range: minimum weekly benefits of $72 up to a maximum of $448.
Disregard amount/period: 50% of the weekly benefits.
The coverage period is up to 20 weeks.

Illinois

Sum offered in each weekly benefit: 47% of the average weekly earnings made in the highest two earning quarters.
Minimum – Maximum Benefit range: You could receive minimum weekly benefits of $51, which go up to a maximum of $484.
Disregard amount/period: 50% of the weekly benefits.
The coverage period is up to 26 weeks.

Indiana

Sum offered in each weekly benefit: 47% of the average weekly earnings in the base period.
Minimum – Maximum Benefit range: you could receive a minimum weekly benefit of $37 up to a maximum of $390.
Disregard amount/period: Whichever amount is greater among the 1/5 of the weekly benefits from sources other than employers in the base period or $3.
The coverage period is up to 26 weeks.

Iowa

Sum offered in each weekly benefit: 4.3% of earnings made in the highest-earning quarter of the base period.
Minimum – Maximum Benefit range: You could receive a minimum weekly benefit of $72, which could go up to a maximum of $481.
Disregard amount/period: 50% of the weekly benefits.
The coverage period is up to 26%.

Kansas

Sum offered in each weekly benefit: 4.25% of the earnings made in the highest-earning quarter of the base period.
Minimum – Maximum Benefit range: You could receive a minimum weekly benefit of $122, which could go up to a maximum of $488.
Disregard amount/period: 25% of the weekly benefits.
The coverage period is up to 26 weeks.

Kentucky

Sum offered in each weekly benefit: 1.2% of the earnings made in the base period.
Minimum – Maximum Benefit range: You could receive a minimum benefit of $39, which could go up to a maximum of $569.
Disregard amount/period: 20% of the earnings.
The coverage period is up to 26 weeks.

Louisiana

Sum offered in each weekly benefit: 4% of the average total earnings made in the past four quarters of the base period x 1.2075.
Minimum – Maximum Benefit range: In Louisiana, you could receive a minimum weekly benefit of $10, which could go up to a maximum of $247.
Disregard amount/period: Whichever amount is lesser among $50 and 50% of weekly benefits.
The coverage period is up to 26 weeks.

Maine

Sum offered in each weekly benefit: 4.5% of the total earnings made in the base period’s highest two earning quarters.
Minimum – Maximum Benefit range: You could receive a minimum weekly benefit of $77, going up to a maximum of $445.
Disregard amount/period: $100.
The coverage period is up to 26 weeks.

Maryland

Sum offered in each weekly benefit: 4.1% of the earnings made in the highest-earning quarter of the base period.
Minimum – Maximum Benefit range: You could receive a minimum weekly benefit of $50, which could go up to a maximum of $430.
Disregard amount/period: $50.
The coverage period is up to 26 weeks.

Massachusetts

Sum offered in each weekly benefit: 50% of the average weekly earnings.
Minimum – Maximum Benefit range: You could receive a minimum benefit of $98, which could up to a maximum of $1234.
Disregard amount/period: 33% of the weekly benefits.
The coverage period is up to 26 weeks.

Michigan

Sum offered in each weekly benefit: 4.1% of the total earnings made in the highest-earning quarter of the base period.
Minimum – Maximum Benefit range: you could avail of minimum weekly benefits of $150, which could go up to a maximum of $362.
Disregard amount/period: 50% of the earnings.
The coverage period is up to 20 weeks.

Minnesota

Sum offered in each weekly benefit: 3.8% of the earnings made in the highest quarter of the base period.
Minimum – Maximum Benefit range: You could receive up to a minimum weekly benefit of $28, going up to a maximum of $740.
Disregard amount/period: 50% of the earnings.
The coverage period is up to 26 weeks.

Mississippi

Sum offered in each weekly benefit: 3.8% of the earnings made in the highest quarter of the base period.
Minimum – Maximum Benefit range: You could receive a minimum benefit of $30 going up to a maximum of $235.
Disregard amount/period: $40.
The coverage period is up to 26 weeks.

Missouri

Sum offered in each weekly benefit: 4% of the average total earnings made in the base period’s highest two-quarters.
Minimum – Maximum Benefit range: Minimum weekly benefits of $35 and a maximum of $320.
Disregard amount/period: Whichever amount is greater among $20 and 1/5 of the weekly earnings.
The coverage period is up to 26 weeks.

Montana

Sum offered in each weekly benefit: 1% of the total earnings made within the base period or 1.9% of the earnings made in the highest-earning two-quarters of the base period.
Minimum – Maximum Benefit range: You could receive a minimum of $163 going up to a maximum of $552.
Disregard amount/period: 50% of the weekly benefit.
The coverage period is up to 20 weeks.

Nebraska

Sum offered in each weekly benefit: 50% of the average weekly earnings.
Minimum – Maximum Benefit range: You could receive a minimum weekly benefit of $70 up to a maximum of $440.
Disregard amount/period: 50% of the weekly benefits.
The coverage period is up to 26 weeks.

Nevada

Sum offered in each weekly benefit: 4% of the total earnings made in the highest quarter of the base period.
Minimum – Maximum Benefit range: You could receive a minimum of $16, which could go up to a maximum of $469.
Disregard amount/period: 25% of the wages.
The coverage period is up to 26 weeks.

New Hampshire

Sum offered in each weekly benefit: 1% or 1.1% of the total annual earnings.
Minimum – Maximum Benefit range: minimum weekly benefits of $32 up to a maximum of $427.
Disregard amount/period: 30% of the weekly benefits.
The coverage period is up to 26 weeks.

New Jersey

Sum offered in each weekly benefit: 60% of the weekly average earnings in the base period.
Minimum – Maximum Benefit range: Minimum $120 up to a maximum of %713.
Disregard amount/period: whichever amount is greater among $5 and 1/4 of the weekly benefits.
The coverage period is up to 26 weeks.

New Mexico

Sum offered in each weekly benefit: 53.5% of the earnings made in the highest-earning quarter of the base period.
Minimum – Maximum Benefit range: $86 up to $461.
Disregard amount/period: 20% of the weekly benefits.
The coverage period is up to 26 weeks.

New York

Sum offered in each weekly benefit: Almost 4% of the earnings made in the highest-earning quarter of the base period.
Minimum – Maximum Benefit range: $104 up to $504.
Disregard amount/period: if you’re residing in New York, no earnings disregards shall be budgeted.
The coverage period is up to 26 weeks.

North Carolina

Sum offered in each weekly benefit: 1/26 of the total earnings made in the highest-earning two-quarter of the base period.
Minimum – Maximum Benefit range: $15 up to a maximum of $350.
Disregard amount/period: 20% of the weekly benefits amount.
The coverage period is up to 12 weeks.

North Dakota

Sum offered in each weekly benefit: 1.5% of the total earnings made in the highest-earning two quarters and 1/2 of the earnings made in the third-highest quarter of the base period.
Minimum – Maximum Benefit range: $43 up to a maximum of $618.
Disregard amount/period: 60% of the weekly benefits.
The coverage period is up to 26 weeks.

Ohio

Sum offered in each weekly benefit: 50% of the weekly wages earned in the base period.
Minimum – Maximum Benefit range: You could receive a minimum weekly benefit of $135, which could go up to a maximum of $480.
Disregard amount/period: 20% of the weekly benefits amount.
The coverage period is up to 26 weeks.

Oklahoma

Sum offered in each weekly benefit: 4.3% of the earnings made in the highest-earning quarter of the base period.
Minimum – Maximum Benefit range: Minimum amount in weekly benefits you could receive is $16, which goes up to a maximum of $539.
Disregard amount/period: $100.
The coverage period is up to 26 weeks.

Oregon

Sum offered in each weekly benefit: 1.25% of the total earnings made in the base period.
Minimum – Maximum Benefit range: you could receive a minimum weekly benefit of $151, going up to a maximum of $648.
Disregard amount/period: Whichever amount is greater among 33% of your weekly benefit amount and $125.
The coverage period is up to 26 weeks.

Pennsylvania

Sum offered in each weekly benefit: The sum of the total wages earned in the highest quarter of the base period is divided by 26.
Minimum – Maximum Benefit range: Minimum weekly benefits you could receive is $68, which could go up to a maximum of $572.
Disregard amount/period: Whichever amount is greater than $21 and 30% of the weekly benefit amount.
The coverage period is up to 26 weeks

Puerto Rico

Sum offered in each weekly benefit: 4% to 9% of the earnings made in the highest quarter of the base period.
Minimum – Maximum Benefit range: a minimum of $33 going up to a maximum of $190.
Disregard amount/period: 100% weekly benefits amount.
The coverage period is up to 26 weeks.

Rhode Island

Sum offered in each weekly benefit: 1/26 of average earnings made in the base period’s two highest quarters.
Minimum – Maximum Benefit range: You could receive a minimum weekly benefit of $53, going up to a maximum of $586.
Disregard amount/period: 20% of the weekly benefits amount.
The coverage period is up to 26 weeks.

South Carolina

Sum offered in each weekly benefit: 50% of the weekly wages made in the base period’s highest-earning quarter.
Minimum – Maximum Benefit range: you could receive a minimum weekly benefit of $42, going up to a maximum of $326.
Disregard amount/period: 25% of the weekly benefits amount.
The coverage period is up to 20 weeks

South Dakota

Sum offered in each weekly benefit: 3.8% of the earnings made in the highest-earning quarter of the base period.
Minimum – Maximum Benefit range: You could receive a minimum weekly benefit of $28, which could go up to a maximum of $414.
Disregard amount/period: Whichever amount is greater than $25 or 25% of your weekly benefits amount.
The coverage period is up to 26 weeks.

Tennessee

Sum offered in each weekly benefit: 3.8% of the earnings made in the highest quarter of the base period.
Minimum – Maximum Benefit range: you could receive a minimum weekly benefit of $30 going up to a maximum of $275.
Disregard amount/period: Whichever amount is greater than 25% of your weekly benefits and $50.
The coverage period is up to 26 weeks.

Texas

Sum offered in each weekly benefit: earnings made in the highest quarter of base period divided by 25, round to the nearest dollar.
Minimum – Maximum Benefit range: You could receive a minimum weekly benefit of $69, going up to a maximum of $521.
Disregard amount/period: Ever amount greater than 25% of your weekly benefits and $5.
The coverage period is up to 26 weeks.

Utah

Sum offered in each weekly benefit: $5 is subtracted from 3.8% of the earnings made in the highest quarter of the base period.
Minimum – Maximum Benefit range: Minimum weekly benefits are $32, which could go up to a maximum of $580.
Disregard amount/period: 30% of your weekly benefits amount.
The coverage period is up to 26 weeks.

Vermont

Sum offered in each weekly benefit: 2.2% of the earnings made in the highest two earning quarters of the base period.
Minimum – Maximum Benefit range: you could receive a minimum weekly benefit of $72, going up to a maximum of $513.
Disregard amount/period:50% of the gross wages.
The coverage period is up to 26 weeks.

Virginia

Sum offered in each weekly benefit: 3.8% of the earnings made in the highest quarter of the base period
Minimum – Maximum Benefit range: you could receive a minimum weekly benefit of $33, going up to a maximum of $602
Disregard amount/period: Whichever amount is greater between $15 and 25% of your weekly benefits.
The coverage period is up to 26 weeks.

Washington

Sum offered in each weekly benefit: 1/26 of the average total earnings made in the two highest-earning quarters in the base period.
Minimum – Maximum Benefit range: In Washington, you could receive a minimum weekly benefit of $188, going up to a maximum of $790.
Disregard amount/period: whichever amount is greater than $5 and 25% of the weekly wages.
The coverage period is up to 26 weeks.

West Virginia

Sum offered in each weekly benefit: Divide earnings made in the highest quarter of the base period by 26.
Minimum – Maximum Benefit range: You could receive a minimum weekly benefit of $24, going up to a maximum of $424.
Disregard amount/period: $60
The coverage period is up to 26 weeks.

Wisconsin

Sum offered in each weekly benefit: 4% of the earnings made in the highest quarter of the base period.
Minimum – Maximum Benefit range: You could receive minimum weekly benefits of $54 going up to a maximum of $370
Disregard amount/period: whichever amount is greater than $30 and 1/3 of your weekly wages.
The coverage period is up to 26 weeks.

Wyoming

Sum offered in each weekly benefit: 4% of the earnings made in the highest quarter of the base period.
Minimum – Maximum Benefit range: You could receive a minimum weekly benefit of $36 going up to a maximum of $508.
Disregard amount/period:50% of the weekly benefits.
The coverage period is up to 26 weeks.

Conclusion

The details mentioned above were the researched stats on how all the different states in the USA calculate unemployment benefits. By reading this definitive guide, you can easily calculate how many weekly benefits you can receive. You can also read our guides on topics like Owner’s equity and account receivables to raise your knowledge of different accounting subjects.

Understanding The Way In Which States Calculate Unemployment Benefits – The Complete Guide