Understanding Partial Unemployment Benefits
When people lose their jobs, they often turn to part-time work to make ends meet. Even though working part-time usually means a decrease in pay, it is still possible to receive unemployment benefits. Understanding what partial unemployment is and how to apply for it can be helpful in these situations.
Defining Partial Unemployment
Partial unemployment occurs when someone is working reduced hours, not of their own accord. This situation is also known as being 'underemployed.' According to Leslie Tayne, the founder of Tayne Law Group, the state will adjust benefits based on the number of hours or days the individual reports working. In December 2020, about 6 million people in the US were employed part-time due to reduced hours or a lack of full-time job opportunities.
Eligibility and Benefits of Partial Unemployment
To be eligible for partial unemployment benefits, state laws typically require that your hours were reduced at your current job or that you are actively seeking other employment opportunities. You are generally ineligible if you choose to work part-time voluntarily. It's important to certify your benefits weekly and report the number of days/hours worked to your state's unemployment office.
Filing for Partial Unemployment
The process of filing for partial unemployment is similar to filing for regular unemployment. Visit your state's Department of Labor website to file a new claim or check your eligibility. It's recommended to gather all necessary information beforehand, such as tax returns, former employment details, and gross wages.
Challenges of Partial Unemployment
Partial unemployment may limit the amount of money you can earn, creating a potential catch-22. It's crucial to actively search for full-time work to qualify for part-time unemployment benefits. Be patient during the initial filing process, as it may take a few weeks to begin receiving benefits.
Impact of COVID-19 on Unemployment Benefits
The COVID-19 pandemic has loosened eligibility requirements for unemployment benefits, particularly for self-employed individuals and gig workers. The Consolidated Appropriations Act of 2021 extends federal pandemic unemployment compensation payments, providing additional financial support to those in need.
Financial Tips for Partial Unemployment
While on partial unemployment, it's essential to budget wisely and look for ways to save money. Modifying your budget, reducing unnecessary spending, and communicating with lenders about financial hardships can help you navigate these challenging times.
