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Unemployment Benefits: States
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Unemployment insurance benefits are available for workers who are unemployed through no fault of their own. Eligibility requirements for collecting unemployment compensation vary from state to state. So, it always makes sense to check eligibility with your State Unemployment Office if you are not sure whether you qualify for unemployment benefits.
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Unemployment benefits are payments made by governments to unemployed people. It may be based on a compulsory para-governmental insurance system. Depending on the jurisdiction and the status of the person, those sums may be meager, covering only basic needs (... a form of basic welfare), or may compensate the lost pay somewhat proportionally to the previous earned salary. They often are part of a larger social security scheme.
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The State of Michigan has recently mailed out year-end statements to anyone who received unemployment benefits in 2006. The statements, entitled 1099-G or “Statement for Recipients of Unemployment Compensation Paymentsâ€, are required in order to prepare 2006 state and federal tax returns. If workers chose to have state and federal income taxes deducted from their unemployment benefits in 2006, the 1099-G reports the amount of taxes withheld. These annual statements are prepared by the Unemployment Insurance Agency (UIA). Any questions regarding the statements should be directed to the following UIA toll-free hotlines:
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A number of studies have noted UC benefits can increase the probability of unemployment and extend the time a person is out of work, among other outcomes. In part to offset such effects, UC and related programs include features designed to assist UC recipients in quickly returning to the labor force. These include a requirement that States target services to certain unemployed workers most likely to exhaust benefits (sometimes called "profiling"), resulting from legislation approved by the full Committee in 1993 (P.L. 103-152). In addition, longstanding program rules require certain recipients to search for work as a condition of collecting benefits.
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Garrison noted that restoring the cuts in unemployment benefits will not jeopardize the fiscal stability of the unemployment insurance trust fund from which benefits are paid. "In fact, the trust fund balance is so high that it recently triggered two additional tax cuts for Michigan businesses totaling $150 million for 1998," he said. "It's time for the Michigan Senate to follow the lead of the Michigan House and do the right thing; restore unemployment benefits that should never have been cut in the first place." SOURCE Michigan State AFL-CIO
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