When times are tough and unemployment is high, it’s comforting to know that unemployment benefits are there to help you get through. And while it can be helpful while finding a new job, it can be hard to let go of the assistance. But can you work a job and still receive unemployment benefits? Unfortunately, in most cases, you cannot be employed and receive unemployment. But how does unemployment know when you are working? This article hopes to answer that very question!
How Do You Qualify for Unemployment?
It’s important to recognize that unemployment benefits vary from state to state. This means that the benefits and regulations found in Texas won’t match those found in California. Because of this, make sure you familiarize yourself with the specifications your state has laid out. However, states do have some common requirements. Here are a few eligibility requirements that seem to be pretty consistent, regardless of where you live:
- Your unemployment is no fault of your own. Typically, this means that your boss fired you or let you go. So, if you were fired for making a large mistake or frequently missing shifts, you may not be eligible for unemployment benefits.
- You must have worked long enough to meet your state’s specific “base period”. This base period can vary. Typically, you must have worked consistently for four out of the past five calendar quarters. If you have not, you may not be eligible to receive unemployment benefits.
These are two base line eligibility requirements that most states will mandate you follow. The first eligibility requirement can be rather subjective, so it’s hard to pin down exactly what it means. There are also some states that allow you to receive unemployment benefits after quitting if you quit because of unsafe working conditions or a significant and uncompensated change in your role’s responsibilities.
Can You Work While Getting Unemployment?
Again, similar to the eligibility requirements, this varies based on where you live. Each state decides what is allowable and what is not. However, generally speaking, you can keep working and receiving unemployment benefits. This is true as long as what you make per week is less than what you get in benefits. There are some states that will incrementally decrease the amount you receive based on the amount you make each week. So while, yes you can work and still receive unemployment benefits, there is a chance that you will not get as much if you are working.
How Much Can You Work and Still Collect Unemployment
If you begin working — even part-time or just odd jobs — the unemployment office requires you to report the work. As you begin earning more, there is a chance you will no longer be able to collect unemployment. Each week the unemployment office will decide whether or not you still qualify for unemployment based on your income. But how much can you earn while still being eligible for unemployment benefits? Well, again, this depends on your state’s regulation.
In the most extreme cases, you can continue collecting benefits if what you earn is less than what you collect in benefits. So if you are collecting $500, you could potentially earn up to that amount and still collect on benefits. However, like we mentioned earlier, many states also have benefit reductions. In Ohio, if you earn 20% of your total benefit amount through working, your benefit amount might be reduced. This amount ranges from state to state. The percentage of income you can make based on the amount of your benefits is somewhere between 20-50%.
Do You Have To Report When You Start Working?
In almost all circumstances, yes you do. Most states require that you report all work-related interactions each week before you receive your benefits. This means you will have to report work that you accepted, work you rejected, and work you applied for or requested. Failing to do so could create more issues for you in the future. For instance, if you are caught not reporting the work you are doing, or forging documents that make it look like you were applying to jobs, there is a chance that you will be banned from receiving unemployment benefits for a period of time. More than that, you could also be prosecuted or fined for the benefits that you received fraudulently.
How Does the Unemployment Office Know If I Am Working?
Will the unemployment office really know if you are working if you don’t report it? Regardless of whether or not the unemployment office will immediately know that you are working, we would always recommend being incredibly upfront and honest when reporting your work. At some point, it will become obvious that you did not disclose your income accurately, whether its when you file your taxes or when your employer reports your work. In the event that you do not disclose the required information, you are definitely at risk of criminal charges, as well as having to repay what you received along with an up to 15% fine. Ultimately, it is better for you in the long run to honestly report the work that you do in order to protect yourself from legal prosecution and fines.
Final Thoughts
While unemployment benefits were created to help individuals make it through difficult times without work, they weren’t meant to replace an income. When you return to work, unemployment benefits were meant to fade out. Being honest and upfront with the unemployment office not only allows the benefit to function as it was made to, but it also protects you from any trouble you might otherwise encounter. Make sure you are accurately reporting your information each week and communicate any work that you take on. If you have more questions about unemployment benefits and what you might be eligible for, feel free to give our team a call at 833-272-3631! We would love to talk with you about what options you have and how you can apply for benefits. Get in touch today and we can help you take the next step towards financial stability. You can also use our free Unemployment Calculator to estimate your weekly benefits.
