Unemployment Insurance

Unemployment insurance replaces part of a paycheck while a laid-off worker searches for the next one. The program is federal in structure but state-run in every detail that matters to a household: each state sets its own weekly benefit formula, maximum, and duration. Per the Department of Labor, benefits replace a portion of recent earnings up to a state cap and last up to 26 weeks in most states, though several pay fewer.

Practical mechanics worth knowing: file promptly in the state where you worked, expect a possible waiting week, and report side earnings, which reduce the weekly benefit above a threshold in most states. Benefits are also taxable income federally, per IRS Topic 418, so consider withholding when you file.