The Business of Singing - Unemployment insurance

UNEMPLOYMENT INSURANCE

Unemployment Insurance Explained
By Cindy Sadler

What do you do when the season’s over, your YAP ends, or the temp market dries up, and you find yourself facing weeks or months before the next gig? Do what every Broadway actor knows to do -- head straight to your local unemployment insurance office! Many singers don’t realize that they may be eligible for unemployment insurance. They may not know what it is, or how it works. They may be afraid that it’s something to be ashamed of, or that the staff won’t understand the performer’s lifestyle and deny benefits.

Well, my friends, knowledge is power. Unemployment insurance consists of monies that your former employers (and in some states, you yourself) have been paying into a fund on your behalf. You are entitled to this money if you meet your state’s requirements, and it’s no badge of shame. As for the staff’s attitude --- well, I can only report on my own experience, which was wonderful. My counselor didn’t blink an eye when I explained what I do for a living. And this was in Texas.

If you become unemployed through no fault of your own, and meet your state’s individual requirements, you can receive temporary benefits through the Federal-State Unemployment Insurance Program. Each state administers its own program within guidelines established by Federal law, so it’s important to check with your state’s agency to determine the specific regulations and requirements.

Eligibility

In order to receive unemployment benefits, you must meet your state’s requirements for wages earned or time worked during a base period of one year. In most states, this is usually the first four out of the last five completed calendar quarters prior to the time that your claim is filed. (A quarter is a three-month period). Additionally, you must show that you are unemployed through no fault of your own (as determined by state law). For example, if you were fired; you were ill or injured and couldn’t work; if you quit for a good reason such as unsafe work environment or lack of payment; or the show you were in closed, you could be eligible for unemployment benefits. If you voluntarily quit a job without good reason (as determined by state law) or are fired for disciplinary reasons, you are not. Depending on your state, you may have to meet other requirements. Many states simply require that you be unemployed through no fault of your own and must be able to work; be available for work; and be willing to seek and accept suitable work. Suitable work means that if you are a former Fortune 500 company executive, you will not be penalized for turning down a job digging ditches. If you’re an opera singer, you won’t be penalized for passing up a job delivering pizza.

Filing a Claim

If you think you may be eligible for unemployment benefits, contact the State Unemployment Insurance agency as soon as possible after becoming unemployed. Delay can result in lost benefits. In some states, you can now file a claim by telephone or through a website.

When you call or go to the office, have complete identification documents, such as drivers’ license and social security numbers. Be prepared to answer questions about your employment history, such as dates and addresses of former employers. In order to assure that your claim is processed without delay, be careful to give complete and correct information.

If you file in person, you will probably spend a couple of hours in the office. Expect to fill out a lot of paperwork, take a brief orientation class, and have an interview with a counselor. Unless your case is complicated, you will probably know before leaving whether you are eligible for benefits. You will leave with all the paperwork you need to get started. Subsequent claims forms will be mailed to you; or you may be asked to file your claim by phone. Generally you will need to file weekly or bi-weekly in order to receive your benefits.

Your first benefit check will arrive about two to three weeks after you file your claim. Some states have a one-week waiting period; so the second week claimed is the first week of payment.

Disqualification from Eligibility

If you left your previous job for any reason other than being fired (for non-disciplinary reasons), your state office will determine whether you are eligible for benefits, generally according to state or applicable federal laws.

If you are disqualified or denied benefits, you may file an appeal. Again, you must check with your state unemployment office for your appeal rights and procedures, and the appeal must be filed within an established time frame. Your employer also has the right to appeal a determination if he disagrees regarding your eligibility.

Staying Eligible

Once you’ve been approved, you’ll need to continue to meet your eligibility requirements. If your employment status changes, if you are offered but refuse suitable employment, or fail to meet additional requirements imposed by the state, you will be disqualified.

You will be required to file weekly or bi-weekly claims and offer proof of your continued eligibility. You must report any earnings from work you had during the week(s); and any job offers or refusal of work during the week. Most states require that you actively seek work while receiving benefits, and you must report on your efforts (i.e., job interviews or requests for interviews). Auditions for singing work count as seeking employment. Each state has its own filing instructions, but claims are usually filed by mail or telephone.

You may also be asked to report in person to your local Unemployment Insurance Claims Office or One-Stop/Employment Service Office. If you miss your scheduled interview, benefits may be denied.

You will not necessarily lose your benefits if you become employed. Requirements differ from state to state, but generally, if you are earning significantly less than your previous job, you will remain eligible for benefits and can continue looking for a better-paying gig.

State Services

Each state has a State Employment Service, and you may or may not be asked to register as part of your benefit eligibility requirements. Many services are offered free of charge. The staff can refer you to job openings in your area (or in other parts of the state or country if relocation is an option); refer you to training programs; offer testing and counseling to determine other types of suitable work; and refer you to agencies that help special needs employees.

Benefits

Benefits are usually based on a percentage of your earnings over your most recent 52-week period of employment. There is usually a state-determined maximum amount of benefits you can receive.

There is also a maximum time period for receiving benefits --- 26 weeks in most states. Additional benefits may be available during periods of high unemployment, and some states provide more benefits for specific purposes such as losing your job due to a disaster.

Benefits are taxable and must be reported as income on your federal tax return. Your State Unemployment Insurance agency can withhold taxes for you.

Self-Employment Assistance

Self-Employment Assistance is a program designed to help unemployed workers create their own jobs by starting their own small businesses. Instead of regular unemployment insurance benefits, claimants receive a self-employed allowance while they are establishing businesses and becoming self-employed. Participants receive weekly allowances while they are getting their businesses off the ground. Unfortunately, fewer than 10 states currently offer these voluntary programs. When you file a regular unemployment insurance claim, ask whether your state participates in the Self-Employment Assistance Program.

Self-employment benefits pay the same as your regular unemployment insurance benefits. Instead of searching for employment, participants work full-time on starting their business.

To receive these benefits, you usually must be eligible for regular unemployment insurance under the state law. If you have been permanently laid off your previous job and are determined by the state’s profiling system to be likely to exhaust regular unemployment benefits, you are usually eligible as well. You may even be eligible even if you are engaged full-time in self-employment activities such as entrepreneurial training, business counseling, and technical assistance.

For more information on unemployment insurance, visit the Employment and Training Administration (ETA)’s website at:

http://workforcesecurity.doleta.gov/unemploy/aboutui.asp.

To find out your state’s requirements, call your local unemployment office or locate your state’s website at http://wdr.doleta.gov/contacts/.