NJ Unemployment Insurance

[badgebot]

Just for an update, after an hour and a half on hold I spoke with someone from the Dept of Labor. They said I would only be able to get unemployment if i was working under 32 hours (32 hours is considered full-time) a week and made less then the $672 which is the max unemployment benefit...

Good info none the less. I do know of other employees here who will be able to take advantage of this.

[seque5tra]

Well, the max NJ unemployment benefit is no longer $674. It has gone down to $584, correct? Not that it applies to me.

I just got laid off. My last day of work was May 1, 2009. I live in Essex County and work in Manhattan. According to NJ's unemployment website, people living in Essex, Bergen, Passaic, Hudson, Union and Middlesex counties, who work in New York, have to file for unemployment with NEW YORK.

The max unemployment benefit in New York is $405.

I'm feeling pretty screwed over. I've never collected unemployment before, so this is new to me. I didn't realize that I was paying unemployment insurance to NY state, as opposed to NJ.

Needles to say, I'm taxed to death in NJ...especially as a resident of Essex county; as someone who doesn't reach full retirement age until 2044, I won't really ever see a dime of Social Security or Medicare (I have resigned myself to the fact that SS and Medicare will have become fairytales of the past by the time I'm eligible). And now I can't even get my fair due with this unemployment crap.

Why is NY's unemployment benefit so much less than NJ's anyway?

[elizgriff]

As of 1992 there were only 2 states in which a tax is levied on workers to support unemployment- NJ and Alaska. The other states only tax employers- this may be part of why NJ pay outs are higher.

[diorgirl]

Originally Posted by elizgriff

As of 1992 there were only 2 states in which a tax is levied on workers to support unemployment- NJ and Alaska. The other states only tax employers- this may be part of why NJ pay outs are higher.

According to the U.S. Department of Labor:

Only Alaska, New Jersey, and Pennsylvania levy Unemployment Insurance taxes on workers.

The tax base is that applicable to employers except in Pennsylvania where employee contributions are calculated on total gross covered wages paid for employment. Worker taxes are deducted by the employer from the worker’s pay and forwarded with the employer’s taxes to the state agency.

In Alaska, the tax rate is equal to 20% of the average benefit cost rate, but not less than 0.5% or more than 1.0%.

In New Jersey, the tax rate is 0.3825% effective July 1, 2004, and thereafter.

Depending on the adequacy of the fund balance in a given year, Pennsylvania employees pay contributions ranging from 0.0% to 0.09% on total gross covered wages paid for employment.

Comparison of State Unemployment Laws

[diorgirl]

Originally Posted by seque5tra

Well, the max NJ unemployment benefit is no longer $674. It has gone down to $584, correct?

Correct! According to the New Jersey Department of Labor and Workforce Development:

The amount of unemployment benefits you may receive each week is your Weekly Benefit Rate (WBR). The amount will be 60% of the average weekly earnings during your base year period, up to a maximum of $584 (in 2009). The maximum amount may change each year.

Department of Labor and Workforce Development | Figuring Out Your Benefit Amount <br> How Much Can You Collect?