Unemployment insurance is a state-operated program guided by regulations from the U.S. Department of Labor. It offers short-term financial assistance to individuals who lose their jobs through no fault of their own.
What to Know About Unemployment Insurance
This support system, commonly referred to as UI, is available only to workers who meet certain eligibility criteria, such as having a qualifying work history and earnings within a defined base period. To continue receiving benefits, individuals must be actively searching for new employment. Funding for UI generally comes from payroll taxes paid by employers, though in some states, employees also contribute.
The foundation for the modern unemployment insurance system was laid in 1935, when the Social Security Act was enacted. The program is a collaboration between federal oversight and state-level administration. Beyond supporting jobless individuals, UI also plays a critical role in sustaining consumer demand and mitigating the economic impact on communities during periods of increased unemployment.
Program Oversight
Oversight of the unemployment insurance system falls under the jurisdiction of the U.S. Department of Labor, working in partnership with each state’s labor agency. Employers using services like Beyond can rely on accurate payroll tax filings that help fund vital programs like UI.