How is unemployment insurance payment calculated?
It varies from one state to another. Estimated bi-weekly maximum in 2002 wasapproximately $320.00 resulting in a monthly Total payment of approximately$640.00.
What is the period of payment?
Each individual receives a maximum payout at the above rate for up to three (3)months. The cutoff date is a hard date and payment ceases whether the unemployedindividual has found another job or not.
What happens if the individual gets a new job in less than 3 months?
Unemployment benefits cease as of the date of the new employment.
What is the true picture of an unemployed individual?
For an individual who worked at a job which paid $7.00 per hour, thatindividual earned $560.00 bi-weekly, $1213.33 monthly or an annual gross incomeof $14,560.00. Upon registering for unemployment, that individual will experience amonthly income difference of -$573.33. If the individual does not find another job for the full duration of the allowed period of three months they will receive a monthlypayment of $640.00 and a total payment of $1,920.00. If that person does not findanother job during that 12 month period, they would have received a total of $1,920.00 in unemployment benefits for the year. The difference between what theyearned at their previous job versus their current unemployment would be an annualdeficit of -$12,640.00.
In the second instance the scenario is even more startling. For an individualwho earned an annual gross salary of $100,000.00 the unemployment benefits arethe same. When that individual registers for unemployment at the same office as thefirst individual, this is what happens. The registrant receives a bi-weekly payment of $320.00 or a monthly payout of $640.00. This individual who earned $4,166.66 bi-weekly, $8,333.33 monthly or an annual gross of $100,000.00 will now experience abi-weekly earnings difference of -$3846.66or a monthly difference of -$7693.33.If
that person does not find another job during that 12 month period, they would havereceived a total of $1,920.00 in unemployment benefits for the year. The differencebetween what they earned at their previous job versus their current unemploymentwould be an annual deficit of -$98,080.00.
A quick synopsis will reveal that the true unemployment rate in the United States mayindeed be significantly understated. The individuals who fall off the "
" are NOT tracked when their benefits run out. The department has no informationabout those individuals until they show up on another company's payroll.