Times are tough and many are finding themselves out of work and collecting unemployment, and many more of those individuals are wondering if it’s better to just collect than to work.
While it IS helpful to collect unemployment benefits while out of work, unemployment is created to be a temporary source of income. It’s important to continue to apply and search for new opportunities and here’s why.
To qualify for benefits, all states require those collecting unemployment to be actively seeking work. Some states even ask you to sign a sworn statement that you are continuously looking for employment, while others mandate proof that you’ve contacted a certain number of job contacts per week.
Unemployment is a great temporary financial assistance solution - but it WILL run out. Typically benefits will last for 26 weeks; however, each state independently dictates the length of unemployment. Coronavirus update: Under the CARES Act, you are eligible to receive an additional 13 weeks of unemployment benefits. This means you may receive benefits up to 39 weeks in total.
When you receive unemployment, you do not receive any additional benefits such as health insurance or life insurance. You are responsible for any insurances you may need or risk covering extreme costs should an emergency occur.
The funds you are receiving for unemployment are taxed which you will be responsible for. If you choose not to have taxes withheld from your unemployment benefits, you may be required to make payments directly to the IRS instead as quarterly estimated tax payments.
You might even have to make quarterly payments in addition to withholding from your benefits. In most cases, you're obligated to make estimated payments if you expect that you'll owe at least $1,000 after accounting for taxes withheld from all your sources of income, and if you expect that your withheld taxes plus any refundable tax credits you're eligible for will be less than 90% of what you'll owe or 100% of the total taxes you paid last year.
The longer you go without work the larger those gaps on your #resume will grow and the harder it will be to land a job. Remember, you are always more hireable when you have a job versus when you are without one for a long period of time. Check out some available jobs hiring right NOW in this article
Make sure to report when you are back to work and notify your state’s UI office if you plan to continue claiming UI benefits. Do not wait until you receive your first paycheck to report your return to work. The UI agency uses state and national resources to track new hires, so it is in your best interest to report your return to work immediately to avoid the consequences of an overpayment.