Calculating your Federal Unemployment Benefits
A claimant’s unemployment benefits claim amount is determined by how much he or she earned during their “base period.” The base period includes the first four of the last five quarters worked before the applicant filed the initial unemployment benefits claim. The wages earned during the base period determine whether the claimant qualifies for benefits and how much aid they are eligible for. The last quarter worked is considered the lag quarter, and no wages from that quarter are counted in the base period. For example, if an applicant files a federal unemployment benefits claim on April 11, 2016, his or her base period is all four quarters of 2015. January to March, 2016 represents the lag quarter, and no wages from that quarter count toward the benefit amount.
During the base period months, the former employee must have earned wages totaling at least $4,200, of which $2,500 must have been earned during the last 6 months of the base period. Additionally, the base period wages must be at least one and a half times the highest quarter wages. To determine your unemployment benefits claim weekly payment, divide the total wages you earned during the last four quarters of eployment by 52. Then, multiply the sum by 0.47. The weekly benefit amount should be rounded down to the next whole dollar amount and should not exceed the maximum weekly benefit amount of $390.
Unemployment recipients are entitled to receive federal unemployment benefits for up to 26 weeks, or until their “maximum benefits amount (MBA)” has been reached (which is listed on the Wage Transcript and Benefit Computation. Emergency unemployment benefits extension in IN may be available during times when the nation is experiencing high rates of unemployment. The applicant’s claim is good through the “benefit year end” (BYE) date. The benefit year consists of the 52 weeks beginning with the first week an applicant files their claim. The BYE date is listed on the home page. The former employee can re-open their claim if they become unemployed more than once before their BYE.
The Indiana total unemployment benefits claim amount is limited by the MBA which is shown on the Wage Transcript and Benefit Computation. It will be 26 times the weekly benefit amount.
Claimants may qualify for “partial benefits” if their employer reduces their work hours to less than their regular full-time work week, or if they take a part-time job and earn less than their weekly benefit amount. Claimants must report their part-time wages on their voucher when earned. A claims deputy will review their circumstances and make a determination of eligibility which will be mailed to the applicant.
If the former worker owes child support payments, the money can be deducted from the weekly benefits. Federal unemployment benefits can be reduced if the UI recipient receives payments from a pension, retirement or annuity plan unless it was used to satisfy a severe financial hardship resulting from an unforeseeable emergency. Severance pay for all individuals will be deducted from UI benefits.
Indiana unemployment benefits claim amounts are taxable income and subject to both federal and state income taxes. Unemployment benefits will be listed on Form 1099-G. You may elect to have federal income tax withheld at a rate of 10 percent and state income tax withheld at a rate of 4 percent. The tax withhold request must be made when the filing the initial unemployment claim. An applicant cannot choose to stop withholding at any point during the current unemployment benefits claim.