When you become unemployed, uncertainty becomes a very big fear. Unlike other lucrative programs, earnings during your absence are calculated as a percentage of your previous salary. To lighten the load on your mind, it's good to estimate the amount of your income during the period of not working in advance so that you can manage your expenses. If you're not interested in calculating your income while you're not working, but you want to calculate the unemployment rate in a country, read the article on how to calculate the unemployment rate. If you want to calculate your income while not working, start by reading Step 1.
Step
Part 1 of 2: Estimating Your Income
Step 1. For a definitive answer, read the state regulations
Each state has its own program for taking care of the unemployed, aligned with the central government. The rules for calculating income and the conditions for collecting it will vary depending on the laws in force in a particular state. Therefore, the steps listed below may not apply in all states. “If in doubt, visit the official website of your state's employment agency for appropriate information.”
In this article, we will calculate a sample of unemployment income according to the rules that apply to “California” and “Texas”, two of the most densely populated states. This will show some of the small differences that exist between states in terms of unemployment income
Step 2. Know the information necessary to calculate your weekly income
As mentioned above, your WBA is calculated as a percentage of the income you received before you lost your job. Of course, the revenue you're referring to is the revenue you earned during "the first four periods during the previous five business quarters." This is called the “base period”. To calculate your WBA, “You need to know how many hours you worked and what salary you earned for each quarter of this base period.” Your paycheck receipt is indispensable in this case. If not, you may need to contact your previous employer for information.
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One year is divided into four quarters and each quarter consists of three months. The four quarters are “Jan.-Mar.” (Q1), “Apr.-Jun.” (Q2), “Jul.-Sep.” (Q3), and “Oct.-Dec.” (Q4). Typically, the revenue amount used to calculate an MBA is based on the earnings you earned during the first four of the previous five business quarters.
For example, If you complete the administration of no longer working in April (Quarter 2), you are based on the income you earned during Q4, Q3, Q2, and Q1 in the previous year. The income you received during Q1 of the year is not counted
Step 3. Determine the amount of your salary in each quarter during the base period
Use your salary receipt, W2 form, and/or records from your previous employer to determine the amount of money you earned in each quarter during the base period. The weekly income you will receive is determined by your income during this period. Remember, your base period consists of “four quarters before the last quarter”.
- For example, we will calculate the unemployment income for a worker in California and in Texas. This worker finished his administration in October. October is in Q4, so we will use salaries from Q2 and Q1 this year, and from Q4 and Q3 last year. This worker earned “$7000” every quarter except for Q2. He earned “$8000” in the quarter.
- Keep in mind that some states allow you to calculate your paycheck in a different base period if your salary is insufficient to earn unemployment income in a normal base period. In certain states, such as Texas, there must be an urgent condition such as a serious illness. Meanwhile, in California, there are no such restrictions.
Step 4. Determine the quarter in which your salary is highest
Sometimes workers earn higher wages in certain quarters, and this is common, especially if they are paid by the hour. Usually your unemployment income is calculated from the quarter where your salary was highest, or the average amount of your salary in the quarter where your salary was highest and other quarters. We recommend that you determine the quarter in which your salary is highest to calculate your income accurately.
In California and Texas, your unemployment income is calculated based on the quarter in which your salary was highest during the base period. However, this is not the case in every state. For example, in Washington, your income is calculated by averaging your salary in the two quarters in which your salary was highest during the base period
Step 5. Get your weekly payout by following the procedures in force in your state
Each state has its own rules for determining the amount of pay per week. Usually, the process is simple. You can simply multiply your salary during the quarter where your salary is highest (or your average salary in a certain quarter – see explanation above) by a certain percentage, divide your salary by a certain number, or look at the table. The ultimate goal in every state is the same – to provide a portion of your “usual income” in the form of a fixed fee. The amount of income you receive will always be less than the income you receive while you are working. "Go to your state's unemployment agency website for appropriate instructions."
- In Texas, weekly earnings are calculated as “salary earned quarterly during the base period divided by 25 and then rounded off.” In other words, you will earn 1/25 of your salary in a quarter each week (meanwhile, if calculated from the quarter in which your salary was highest, you will receive approximately 1/12 of your salary per quarter each week – more than twice fold). In the case of the worker example, 8,000/25 = $320. This worker will earn $320 per week.
- In California, the process is a little different. Unemployment income is calculated by matching your salary in the quarter in which your salary was highest with the values listed in the table provided by the Job Development Division. In this case, based on the $8000 earned in the most productive quarter, the worker would receive an income of “$308”. This amount is about 1/26 of the earnings per quarter.
Step 6. Prepare yourself for the possibility that your weekly income will be cut
Think of your weekly income as the “maximum possible”, and not as a concrete picture of what you will receive. In reality, there are many reasons why you can't get your full weekly money back. As an example:
- Unemployment income is considered as taxable income.
- The fee can be reduced to pay for child protection services, outstanding debts, etc.
- Some types of work are subject to special rules in terms of unemployment income. For example, in California, if a school officer files a claim between two semesters but it is possible that he will return to work the following semester, his earnings may be withheld. However, if he or she is ultimately refused work, this payment can be paid in installments.
Step 7. Expect to receive more than the minimum amount and less than your state's maximum
There are differences in “weekly income ranges from state to state. In essence, states will not pay more or less than a certain amount per week. If your calculated income is less than the minimum amount, you will receive the minimum amount, and vice versa if you calculate that the amount you received exceeds the maximum amount.
- For example, in California, the maximum weekly income amount is $450. If the example worker was very rich and earned $800,000 in the productive quarter, he would still be earning $450 per week instead of 800,000/25 = $32,000.
- In Texas, the maximum weekly income is $454, so the example worker would receive that much.
Step 8. Calculate your maximum income as a multiple of your weekly income
No state will provide an uncertain weekly income. Usually, unemployment income stops after a certain amount has been paid. After that, in order to receive the money again, the person must reapply or apply for an extension. Usually, your maximum income amount is your weekly income multiplied by a certain number or percentage of your salary during the base period.
- In Texas, the maximum amount for a beneficiary is 26 times weekly earnings” or “27% of all salary earned during the base period – whichever is less. The example worker earns $320 per week – 320 × 26 = $8320. The total salary during the base period is $29,000. 29,000 × 0.27 = $7,830. The last amount is smaller, so it can be said that the maximum income is “$7,830”.
- In California, the maximum amount of earnings is 26 times the total weekly earnings or “half” of all salaries received during the base period – whichever is less. The worker's example earned $308 – 308 × 26 = $8008. The total salary he received during the base period was $29,000. 29,000/2 = $14,500. The first amount is smaller, so the maximum amount of income is “$8,008”.
Part 2 of 2: Understanding the Basics of Unemployment Insurance
Step 1. Know what you can expect in terms of frequency and amount of revenue
Usually, people who earn unemployment income receive weekly pay, not bi-weekly or monthly as regular payroll. The amount of each weekly payout is usually called “Weekly Benefit Amount” or “Weekly Benefit Rate” (WBA or WBR, in Indonesian “Amount of Weekly Income”). The WBA for jobless claims depends on the size of the recipient's previous income. The greater your previous income, the greater the amount you will receive in the form of unemployment income.
To be sure about the amount of unemployment income you should receive per week, you need to file a claim. However, you can expect to receive 40-60% of your previous income (depending on where you live)
Step 2. Be aware that unemployment income may be subject to rules and limits
To avoid fraud and abuse, state governments usually require recipients to find permanent employment.
In addition, the amount of unemployment income that a person receives is unlimited. The “Maximum Benefits Payable or “Maximum Benefit amount” (MBP or MBA, in Indonesian “Maximum Income Amount”) is the total amount of unemployment income your state will pay for the duration of your claim (usually one year). Once you have received all of them, you will need to reapply and/or take an eligibility interview to continue receiving income. The MBP varies according to which state you reside in
Step 3. Know that different states have different rules
To earn unemployment income, you must meet certain conditions. Employment agencies usually determine your eligibility by contacting you and your employer, so don't lie about your eligibility. To be worthy of it, you must have lost your job for reasons beyond your control – for example, you weren't fired because you were incompetent, or you quit your job because you didn't like it and you filed an unemployment claim. Other requirements determined by your state that you need to know are:
- You must have earned more than a certain amount during the base period. Usually, this amount is very small – even for a minimum wage job, if you have worked the base period or close to it, you should be fine. This is to avoid having people who hardly ever work during the base period to get this advantage.
- The weekly income you calculate must be more than a certain percentage of your total earnings during your base period or part of it. As explained above, this applies so that people who almost never work do not get this benefit.
- You need to work a certain amount of time (days or hours) during your base period. Read the section above.
Tips
- You can use a different base period if you fail to meet the required working hours in the base period normally used in calculations. The number of hours worked varies depending on which state you live in. However, usually the number of hours worked should be as much as 680 hours.
- Although not required, a lawyer who specializes in the field of unemployment can help you go through the application process and calculate the amount of weekly income you are entitled to receive.
