What are the disadvantages of unemployment benefits?

Advantages and Disadvantages of Receiving Unemployment Benefits

• Answer:

  Unemployment benefits are temporary payments the states pays you when you're unemployed through no fault of your own. They're funded by the payroll taxes employers pay to the state revenue departments each quarter. If you qualify based on your state laws, you'll soon find that there are both advantages and disadvantages to receiving these benefits. Some Income The best part about receiving unemployment benefits is that you receive regular payments to help you make ends meet while looking for new work. Depending on the state, you receive your payments on either a weekly or biweekly basis. Which state pays your unemployment benefits also determines whether you can receive your payments by check, direct deposit or prepaid debit card. Not Your Full Income A major disadvantage of unemployment benefits is that it's not your full former salary. Your benefits are only a portion of the weekly salary you earned during the first four of the last five full calendar quarters before you filed for benefits. Again, the exact percentage depends on the state you receive the benefit from but it's usually about half of what you earned up to the state's legal limits. It's Temporary As relieved as you may be to find you're eligible for unemployment benefits, the same notice reminds you that it's only temporary. Each state has a number of weeks or a maximum amount of benefits you can collect based on your previous income and the state's unemployment laws. The reason for these limitations is to prevent anyone from using unemployment as their primary source of income. Job Search Help Finally, an additional advantage of unemployment is that the state's labor office offers you help finding new employment. As soon as you find a new job, your unemployment benefits end. So, the state wants to help you find a new job as quickly as possible. Through seminars, job fairs and other job hunting tools, it offers you support for your job search.