What is state unemployment insurance (UI)?

Unemployment Insurance (UI) is a joint state-federal program that provides temporary cash benefits to workers who are unemployed through no fault of their own. While each state administers its own UI program, all states follow federal guidelines.

Key points

• Benefits are intended to provide financial assistance while eligible workers search for new employment.

• Each state sets its own rules for eligibility, benefit amounts, and duration

• Benefits are typically based on a percentage of your earnings over a recent 52-week period, with a maximum limit set by each state.

• UI benefits are subject to federal and most state income taxes, and you can choose to have taxes withheld from payments.

Eligibility

• You must be unemployed through no fault of your own, usually due to a lack of available work.

• You must meet work and wage requirements based on your state’s 'base period' (generally the first four of the last five completed calendar quarters).

• You must meet any additional state-specific requirements.