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Unemployment Insurance

QUESTIONS AND ANSWERS

Unemployment Insurance

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Q. What does “base-year period” mean?
A. The regular base-year period of any claim consists of the first four of the last five completed calendar quarters preceding the date of the claim. When a claimant files an unemployment claim, the weeks and wages in the base-year period are counted to determine eligibility.

There are two alternative base-year periods that can be used to determine monetary eligibility on claims originally determined invalid under the regular base-year period. Alternative Base Year #1 consists of the four most recently completed calendar quarters preceding the date of a claim, and Alternative Base Year #2 consists of the three most recently completed calendar quarters preceding the date of the claim and weeks in the filing quarter up to the date of the claim.

Q. What are the minimum requirements for establishing a valid unemployment claim?
A. To have a valid claim, a claimant must have had at least 20 base weeks of earnings in covered employment during the base-year period or, in the alternative, have earned during that time a specific dollar amount or more in remuneration. The base week amount is 20 times the state hourly minimum wage ($145 in 2012) and the alternate earnings test is 1,000 times the state hourly minimum wage ($7,300 in 2012).
Q. What do the terms “remuneration in lieu of notice,” “severance pay,” and “continuation pay” mean as they pertain to unemployment entitlement?
A. “Remuneration in lieu of notice” is a payment obligated by legal requirement, contract or custom to take the place of advance notice of separation. It is considered an extension of employment and should be reported as regular base weeks and wages. An individual is disqualified for unemployment benefits for any week in which he/she receives remuneration in lieu of notice.

NOTE: An individual who receives remuneration in lieu of notice for a period of less than a calendar week may be eligible for partial unemployment benefits for such week.

“Severance pay” is a lump sum or periodic payment at the time of separation that is given not in place of notice but is obligated by contract or custom based on past services performed for the employer. The money should not be reported as wages and no base weeks should be reported because severance pay does not lengthen the period of employment. Severance pay is not included in monetary calculations and the receipt of such payment is not a bar to unemployment benefits.

“Continuation pay” is pay that is paid to an employee in periodic installments after the date of separation when no services are required by the employer. Such payment is a bar to unemployment benefits as the person is still considered employed. Continuation pay may be used in calculating the monetary determination after the end of the period of continuation pay.

NOTE: “Salary continuation through date of termination” is defined as payments made by the employer that represent wage or salary payments through the date of termination during which time the employee is not required to perform any services. These payments are based on either a contractual or other agreement. It is considered an extension of employment through the date of termination of the contract or agreement and should be reported as regular base weeks and wages. An individual is ineligible for unemployment benefits for any week in which he/she is receiving salary continuation through date of termination.



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