How are unemployment benefits calculated?
| Saturday, Aug 07 2010 12:19 PM
Last Updated Saturday, Aug 07 2010 12:19 PM
Q: Unemployment benefits vary by state with Massachusetts receiving a maximum weekly amount of $629 while California receives a maximum weekly amount of $450 a week. Why does Massachusetts receive a lot more money than California?
-- Jennifer Matthews
A: Deanne Amaden, a spokeswoman for the U.S. Department of Labor, responded:
The federal statutes establishing the unemployment insurance system allow each state to establish the minimum and maximum weekly benefit amounts as well as the wages and earnings required to qualify for benefits.
States replace, on average, 50 percent of workers' lost wages up to a certain limit (usually the average weekly wage in a state). As a result, states tend to replace a higher percentage of low-wage workers' income than they do for high-wage workers.
Some states (13) provide dependents allowances. Factors that can affect the benefit levels also include average weekly wage, how much of a benefit the state legislature wants to make available to unemployed individuals and how much unemployment tax it decides to collect.
Those applying for benefits in California should be encouraged to seek information directly from the California Employment Development Office: www.edd.ca.gov.
