TaxBandits Knowledge Base

What is unemployment compensation?

Unemployment compensation, also known as unemployment insurance or benefits, is provided by federal or state agencies to individuals who lose their jobs due to layoffs or retrenchment.

Eligibility Requirements:

To qualify for unemployment compensation, individuals must meet certain conditions, such as:

• Having a minimum work history
• Registering as unemployed
• Actively searching for a job

Reporting Unemployment Compensation:

The unemployment compensation paid to an individual must be reported by the respective government agency (federal, state, or local) on Form 1099-G.