4 Myths About Unemployment Insurance Benefits
Written by
Adam Palasciano
Edited by
Cory Dudak
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The onset of the COVID-19 pandemic brought mass layoffs that are continuing today. Many Americans are finding themselves unemployed for the first time, and there is misinformation and confusion around collecting UI benefits.
Unemployment insurance (UI) benefits are designed to help keep you financially afloat while you search for your next opportunity. However, there are four common myths when it comes to navigating and understanding UI benefits, according to Money.com.
Unemployment Will Cover All Of Your Expenses
UI benefits are intended to help you pay your bills during periods of unexpected job loss. The maximum monthly UI benefit you’re eligible for depends on several factors including which state you live in and how long you worked and paid taxes before you were laid off. The state you live in also determines the maximum number of weeks eligible applicants may collect UI benefits.
The reality is that in most cases, it’s only enough money to help subsidize your monthly costs, not cover them completely.
You’re Eligible For Unemployment Simply If You’re Not Working
Some may believe that if you’re not working for whatever reason, then you’re eligible to collect unemployment benefits. This is false, and the reality is that you need to be laid off or out of work through no means of your own to be eligible for UI benefits. This includes your employer downsizing, shutting down completely, or the elimination of your position.
If you quit your job, you will not be able to collect UI benefits while you search for a new one.
The More People Claiming Unemployment, The Less Money For You
The unemployment insurance system is financed through payroll taxes that go into the federal and state unemployment insurance funds. So, there’s no need to worry about qualifying for fewer benefits during a period when lots of other people are also applying.
If you find yourself unemployed and meet your state’s qualifications, you may collect UI benefits.
You Have To Be Completely Laid Off To Collect UI Benefits
If you’re only partially laid off, meaning you’ve experienced a reduction in your work schedule or working hours that’s resulted in decreased pay, you may be eligible for partial UI benefits. You could receive a partial monthly benefit while you continue to work a reduced schedule.
Make sure you check with your state’s unemployment office to see how and if you qualify if this happens to you.
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