July 29, 2015
Aside from being out of work, individuals seeking to collect unemployment benefits must demonstrate that they have met a minimum standard in earned wages just prior to their separation.
Every state agency has its own eligibility regulations and requirements that determine when claimants meet mandatory qualifications to receive unemployment benefits. The fundamental purpose of all state unemployment agencies is to appropriately compensate claimants who satisfy the work and wage credit qualifications, comply with work search and availability requirements, and are out of work through no fault of their own.
Normally, monetary claim eligibility is directly related to a claimant’s prior wages (during the base period). The benefit year maximum award represents approximately 50% in wage replacement. The tangible amount of the benefit compensation award is partially determined by total wages earned (wage credits) and duration of employment during the recent past, or the “base year.”
The most common “base period” is a consecutive 12 months comprising the first four of the last five previously completed calendar quarters preceding the quarter in which a claim is filed. Frequently, states also utilize an “alternative base period” consisting of the four most recent quarters’ wages or another valid time period of covered wages.
Unemployed workers that apply for benefits will establish a “benefit year” that continues throughout the ensuing 52 weeks. The total amount of benefits and the duration of time a claimant collects during an established benefit year is calculated by applying the wage credits (total gross pay accrued by the claimant during the base period) to a unique formula created by each state’s law.
All states have established a maximum and minimum amount of allowable benefits during the immediate fifty-two weeks after the date the unemployment claim is filed. The Maximum Weekly Benefit Amount (MWBA) is the most any claimant can collect during a week of the benefit year. The minimum standard or Minimum Weekly Benefit Amount (mWBA) represents the lowest benefit award based on wage requirements for an unemployed worker to receive any benefits.
The current highest maximum benefit award available is found in the state of Massachusetts at $1,047 and the lowest minimum award can be found in Hawaii at $5. For state-by-state unemployment cost information, including benefit award amount, click here.
Watch for the next article on “Qualifying Reasons for Claimant Eligibility”
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Working with Marshal Whittey at First Nonprofit has been a great experience. He handles our request as a priority and goes above and beyond to resolve any issues we have in a timely manner. Marshall follows through to the end and ensures our needs are met. He has been a great resource for LSC and our “go to” for any tax questions we may have. With LSC transitioning several facilities into one federal tax identification number, First Nonprofit was able to assist and provide guidance with best practices resolving claims to each entity. Additionally First Nonprofit provided knowledge (information materials) and one on one training to HRS group with best practices to handle claims state adjudicated, fraudulent claims, and appeals. And processing information in the First Nonprofit [unemployment claims] system allows for timely information can be collected.
My experience with FNP has been wonderful. Unemployment in general is quite confusing and FNP has simplified the process for us. Everyone we have reached out to or worked with has been very helpful and follows up to be sure we understand the information. I am so happy we made the switch to FNP!
First Nonprofit smoothed the unemployment perils for our organization during Covid. Without the ability to cap our UI exposure, we would not have been able to weather the storm. The program worked perfectly and we have come out of the pandemic ready to forge on. Thanks FNP!
My experience with the FNP has been fantastic. The idea of setting funds aside for the unemployment tax liability is a bedrock for nonprofit organizations like mine, namely ASHBA; what is even more advantageous is having the FNP as a custodian of those funds. 100% recommended!
I would like to comment on my experience with FNP….to date our District has saved $1,000’s of dollars by being enrolled in the First Nonprofit program. My only regret is that we did not know about this method of paying unemployment tax years ago….as I had figured about five years
ago, had we enrolled 15-20 years ago, we could have saved our small school district upwards of $500,000 in payments to IDES. Also we would have had a pretty hefty sum of money in our Reserve Account. Thankfully I attended a workshop hosted by First Nonprofit back in 2015 which got the ball rolling!
I have worked with the First Non-Profit Team for many years, and I appreciate the quick response and care that Cecilia and the team provides anytime I have questions. While there are other providers that may provide like services, First Nonprofit will always be my first choice! I appreciate you!
First Nonprofit has been easy to work with and makes the administrative process easier and smoother. We enjoy working with you.
Luckily for us, our interactions regarding any issues with staffing has been very minimal! I can say that all other interactions with regards to billing, 941 reporting, etc. have been extremely pleasant, accommodating and easy to work with. Kim Ghanayem is always prompt, professional and friendly. Thank you so much!