Unemployment insurance in the United States information

Unemployment insurance in the United States, colloquially referred to as unemployment benefits, refers to social insurance programs which replace a portion of wages for individuals during unemployment. The first unemployment insurance program in the U.S. was created in Wisconsin in 1932, and the federal Social Security Act of 1935 created programs nationwide that are administered by state governments. The constitutionality of the program was upheld by the Supreme Court in 1937.

Each of the 50 U.S. states, as well as the District of Columbia, Puerto Rico, and U.S. Virgin Islands, administer their own unemployment insurance programs. Benefits are generally paid by state governments, funded in large part by state and federal payroll taxes levied on employers, to workers who have become unemployed through no fault of their own. Employees in Alaska, New Jersey and Pennsylvania are also required to contribute into the program.^[1]^[2] Benefit amounts for eligible workers vary by state, ranging from maximum weekly payments of $1,015 in Massachusetts to $235 in Mississippi as of 2022.^[3]^[4] According to the Internal Revenue Code, these benefits are classified as "social welfare benefits" and as such are included in a taxpayer's gross income.^[5] The standard duration of available unemployment compensation is six months, although extensions are possible during economic downturns. During the Great Recession, unemployment benefits were extended by 73 weeks.^[6]

Eligibility requirements for unemployment insurance vary by state, but generally speaking, employees not fired for misconduct ("terminated for cause") are eligible for unemployment benefits, while those fired for misconduct (this sometimes can include misconduct committed outside the workplace, such as a problematic social media post or committing a crime) are not.^[7] In every state, employees who quit their job without "good cause" are not eligible for unemployment benefits, but the definition of good cause varies by state. In some states, being fired for misconduct permanently bars the employee from receiving unemployment benefits, while in others it only disqualifies the employee for a short period.

^ "Are employee contributions essential to unemployment insurance?". Economic Policy Institute. Retrieved April 18, 2020.
^ "Division of Unemployment Insurance | What is Unemployment Insurance?". myunemployment.nj.gov. Retrieved April 18, 2020.
^ "How your unemployment benefits are determined". Mass.gov. October 2, 2022. Retrieved December 2, 2022.
^ "Benefit Eligibility Requirements". MDES. Retrieved December 2, 2022.
^ "Tax Topics – Topic 418 Unemployment Compensation". Internal Revenue Service.
^ "Here's How Long Unemployment Benefits Now Last In Each State". Business Insider.
^ "How to Handle a Wrongful Termination". thebalance.com.

[1] "Are employee contributions essential to unemployment insurance?". Economic Policy Institute. Retrieved April 18, 2020.

[2] "Division of Unemployment Insurance | What is Unemployment Insurance?". myunemployment.nj.gov. Retrieved April 18, 2020.

[Mass.gov_2022-3] "How your unemployment benefits are determined". Mass.gov. October 2, 2022. Retrieved December 2, 2022.

[MDES-4] "Benefit Eligibility Requirements". MDES. Retrieved December 2, 2022.

[5] "Tax Topics – Topic 418 Unemployment Compensation". Internal Revenue Service.

[6] "Here's How Long Unemployment Benefits Now Last In Each State". Business Insider.

[7] "How to Handle a Wrongful Termination". thebalance.com.

Unemployment insurance in the United States information

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