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Life Events


Every stage of life has its own financial needs and concerns. The life events on this page can help you target the key financial strategies and issues that are likely to be most important to you in this stage of your life.

Starting Out    Changing Jobs    Coping with Unemployment    Getting Married    Starting a Family    Buying a Home    Saving for College    Starting a Business    Planning/Saving for Retirement    Managing College Expenses    Long-Term Care Planning    Planning an Estate    Planning for Business Succession    Nearing Retirement/Retirement    Caring for an Aging Parent    Loss of Spouse    Financial Windfall    Getting Divorced   
 
Receiving Unemployment Benefits

Do you worry about changes in the economy? Have you recently been fired or a victim of downsizing? Whatever your situation, you may be wondering if you're eligible for unemployment benefits. For a basic understanding of how unemployment benefits work, read on!

Am I eligible?

Although specific eligibility requirements vary from state to state, most states have the same basic standards for collecting unemployment benefits. They include:

  • You must be unemployed or working less than full time
  • You must meet certain income requirements
  • You must be ready, willing, and able to work
  • You must have involuntarily left your job

In general, you won't be eligible for benefits if:

  • You quit your job simply because you didn't like it
  • You're fired for committing a crime (e.g., stealing)
  • You've never worked before

For more information, contact your state's local employment office. You can also look in the state government section of your phone book under Unemployment Insurance, Unemployment Compensation, Employment Insurance, or Employment Service. Or, you can try surfing the Internet using these same key terms.

Where does the money come from?

In most states, unemployment compensation is financed by employer contributions through a payroll tax. In a few states, employees are also required to contribute a minimal amount to the fund.

How do I apply?

Most states will allow you to apply for benefits:

  • In person
  • By telephone
  • By mail

When filling out the application, you'll be asked a lot of questions, so have the following information handy:

  • Your Social Security number
  • Your last employer's name, address, and phone number
  • Your last day of work and the reason that you're no longer working
  • Your salary history
  • Your proof-of-citizenship status
How are benefits calculated?

Regardless of which state you live in, you'll receive a weekly unemployment benefit based on how long you were employed and your prior wages. The state will calculate your average weekly wage, and you will receive a percentage of that wage based on your state's formula. You can figure out your average weekly wage by adding up 12 months' worth of pay stubs and dividing that number by 52. If you were salaried, just divide your annual salary by 52.

How long can I receive benefits?

In most states, you can receive benefits for up to 26 weeks. However, federal laws and some state laws provide for additional benefits to be paid to workers who exhaust their regular benefits during periods of high unemployment. These additional benefits may generally be paid up to 14 weeks (20 weeks in some states) and are funded partly by state governments and partly by the federal government.

Are unemployment benefits taxable?

The answer to this question comes as a big surprise to many people. Yes, the unemployment compensation you receive is generally taxable. In some states, you can ask that taxes be withheld from your unemployment check. This could save you from a big tax bill at the end of the year. For more information, consult your tax advisor.



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* Michael J Hall is an Investment Advisor Representative of and offers Securities and Investment Advisory Services through Woodbury Financial Services, Inc., Member FINRA/SIPC and Registered Investment Advisor. Insurance services offered through RHD Financial, which is not affiliated with Woodbury Financial Services, Inc. Neither RHD Financial, nor Woodbury Financial Services, Inc., offer tax or legal advice. 

Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, or legal advice. The information presented here is not specific to any individual's personal circumstances.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

PLEASE NOTE: The link(s) provided is strictly a courtesy. When you link to any of the websites provided here, you are leaving this website and assume total responsibility and risk for your use of the website you are linking to. We make no representation as to the completeness or accuracy of any information provided at these websites. Nor are we liable for any technical or system issues or any consequences arising out of your access to or your use of information and programs made available through this web site.


This communication is strictly intended for individuals residing in the state(s) of AZ, CA, CO, FL, IL, IA, KS, MN, NE, TX and WA. No offers may be made or accepted from any resident outside the specific states referenced.
 


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