How Much Will I Get? Calculating Unemployment Compensation

The unemployment application process, once complete, will determine unemployment benefits and calculate unemployment compensation to be received on a week-to-week basis. This can be calculated by the applicant so they can figure out how much they will receive or they can wait for their first payment to arrive. Figuring out how much one will receive prior to obtaining the first payment will help the applicant plan their weekly budget for food and other daily necessities. Each state in the country has a different maximum amount and minimum amount that it will pay to workers receiving unemployment benefits on a weekly basis. This means that the states will not pay the workers more than the maximum amount or less than the minimum amount. The total time a person can receive unemployment benefits is for 26 weeks, which do not need to be consecutive but must be within the same Benefit Year.

Requirements

Applicants for unemployment benefits must meet a variety of nonmonetary and monetary requirements to be eligible for payments from their state or federal government. The nonmonetary requirements an applicant must meet include the following:

• The applicant must be unemployed at the time the application is filed
• The applicant must continue to search for a new job
• The applicant must physically and mentally able to work
• The applicant must register with the Department for Employment Services
• The applicant must attend required meetings with their state unemployment agency
• The applicant must claim weekly benefits

The monetary requirements include the following:

• The applicant must have made $750 or more in one quarter during their base period
• Wages in the last six months of the employee’s base period should not be less than 8 times their weekly benefit rate

How to Determine Compensation

When applying for unemployment benefits the applicant can calculate on their own how much money they will be receiving from the state while they search for a new job. The base period of a worker determines whether or not he or she is actually allowed to collect unemployment benefits from the state. The base period figure can be calculated by doing the following:

1. The calendar year is divided into four quarters (January 1-March 31, April 1-June30, July 1-September 30, October 1-December 31)
2. The completed quarter is the last full quarter worked by the employee just laid off from their job
3. The last five completed quarters are the previous five worked in full by the employee. Count backwards to determine the final five quarters
4. Reverse the order of the above step and this is the base period used by the state to determine whether or not the applicant is eligible for unemployment benefits

Each different state across the country has their own formula for determining how much a worker will receive on a weekly basis in unemployment benefits.

Example Formula

For example, one employee earns a gross salary of $400 per week and was consistently employed at one company for the previous five quarters at the rate mentioned above. By no fault of their own, their job ended on July 15 and the base period is from April 1-March 31. During the high quarter, the employee earned wages of $5,200 and has three dependants. The worker, if living in Rhode Island, can use the following to calculate their unemployment benefits:

• Multiply high quarter wages of $5,200. by 4.62% (.0462) = $240.24
• Add 5% of benefit ($12.) for each dependant = $240.24 + $36. = $276.24
• The worker can expect to receive about $276.00 per week in benefits

Get Professional Legal Help

When determining how much compensation one will receive via unemployment benefits the applicant should consult an experienced unemployment attorney. The attorney will be able to answer any questions that arise while also helping the client determine the amount of money they will receive.