This week, our hosts explore the confusing process of filing for unemployment. From eligibility to receiving your benefits, Corinne and Natalie break down everything you should know about unemployment insurance, all while enjoying a glass of red wine.
Our Hosts:
Corinne Foxx - @corinnefoxx
Natalie McMillan - @nataliemcm
What we're drinking: 2016 DeLille Roofline Red Blend
INTRO
Corinne discusses her reservations about living alone, while Natalie hypes her up. Natalie reveals the benefits of talking to her plants and her secret to keeping them alive: crystals. Corinne considers getting her first dog and Natalie explains her deep love for her own pup, Zeppelin.
In this episode, Natalie talks about her recent experience reading The Alchemist.
TOPIC
2020 is a unique and confusing time. During this year, the United States has experienced the highest unemployment rate in recent history. Before this year, the highest number of unemployment filings was 696,000 during the week of October 2, 1982. During the last week of March 2020, we reached a new high at 6.6 million.
What Is Unemployment Insurance?
Unemployment Insurance - Started in 1935, unemployment insurance temporarily replaces a portion of wages for workers who have been laid off, as long as they’re looking and available for work.
What are my benefits and how long do they last? - Benefits vary state by state, BUT normally it provides 26 weeks of benefits to unemployed workers and, on average, replaces half of the worker’s previous wages.
What was the CARES Act? Because more people lose jobs during economic downturns, there is room for economic stimulus’ to these programs based on the severity of the recession. I.E. coronavirus or the CARES ACT $2 trillion stimulus package
What is unemployment insurance vs. unemployment? Despite confusion, unemployment insurance and unemployment benefits are the same thing.
Where Does Unemployment Money Come From?
The U.S Department of Labor’s Unemployment Insurance program is funded through taxes paid by state and federal government. This is often-discussed payroll taxes all employers pay.
The rate is 6% of the first $7,000 of each employee’s wages. This rate is called FUTA ( Federal Unemployment Tax Act).
There are only three states that ask employees to contribute to unemployment insurance: New Jersey, Pennsylvania, Arkansas
Federal vs. State Contributions - Unemployment is a “joint” compensation program between the federal and state governments.. US department of labor oversees the system, but overall it is mandated state by state and is run according to state laws. For example, each state gives a different amount of unemployment benefits. States also have a ton of flexibility in determining what benefits they can/will offer.
Replacement Rates - Hawaii’s UI average replacement rate of 55 percent was the highest, while D.C.’s average replacement rate of 21 percent was the lowest. Replacement rate is the amount of your wages lost that is being replaced by unemployment insurance, example is if your weekly wages were $1,000, and you lived in Hawaii, you would be covered for $550 a week.
We recommend knowing your states benefits and replacement rates, individually. We...
