General Eligibility Requirements for Unemployment Insurance Benefits in Illinois/ Taxes

It seemed like a slow day as I spent almost eight hours sitting in the library. I had a lot to do today including working on my 2016 taxes. The taxes are particularly complicated because I lived and worked in Japan from January to mid-October last year.  I didn’t take advantage of it, but there is free tax advice/filing assistance via IRS volunteers for those who meet certain qualifications (income under $54,000, limited English, etc.):

https://www.irs.gov/individuals/free-tax-return-preparation-for-you-by-volunteers

In connection with the above, please note that any unemployment benefits you receive are likely subject to income tax. Nothing will be withheld from the weekly benefit amounts you will receive unless you elect to do so.

I realize that I might have gone out of order for Illinois unemployment insurance benefits in my posts. First, all you need to know is in the handbook and the website here:

http://www.ides.illinois.gov/IDES%20Forms%20and%20Publications/CLI105L.pdf

http://www.ides.illinois.gov/Pages/Unemployment%20Insurance.aspx

Next, as a quick primer, from page 4 of the above-linked handbook, the general eligibility conditions for unemployment insurance benefits in Illinois are:

1. You are unemployed through no fault of your own.

2. You were paid $1,600 or more in wages during your base period for insured work.

3. You were paid at least $440 of your base period wages at any time during the base period outside the calendar quarter in which your wages were highest.

4. You are registered for work with IDES.

I’ll go into the details of filing for the above once I go through the motions.

Other than the above, while walking to school with Mimi and Boo today, I ran into the mother one of their classmates and chatted a bit about my situation. Like me, her husband is a lawyer, and she was happy to give advice such as places to contact like the local bar association as well as different legal job search sites. Meeting people like her, that is, people willing to give a hand to near strangers, feels good. If we keep networking like this, we’ll be out of this predicament before we know it!

Day Twelve Lessons:

1. Unemployment Insurance Benefits are Taxable

2. Again, Keep Networking!

Total Contacts Reached Out To: 35

Total Applications: 32

Unemployment Insurance Benefits w/Part Time Work

I never got around to talking to the folks at the Illinois Department of Employment Security today.  I ended up having lunch with a former intern at my old law firm and visiting my sister Kira for a bit downtown. My second trip back to the city, where my previous company is, wasn’t as emotionally tough as the first one. Time is a healer and my job search progress makes me feel better.

I also talked on the phone with another colleague who will likely be able to give me anywhere between 5-20 hours of work a week of reviewing contracts. Yeah!!!

As to part-time work and unemployment benefits, in Illinois you still may claim some benefits for a week if you work less than full time provided that your part-time earnings are less than your weekly benefit amount.

If your part-time earnings are less than the weekly benefit amount, you use the following formula to calculate your partial benefit amount:

Partial Benefit Amount= Weekly Benefit Amount- (Earnings- (.50 (Weekly Benefit Amount)))

The Partial Benefit Amount is raised to the highest dollar.

So, if my earnings for part-time work during the week are $76.50, and my weekly benefit amount is $110.00, my partial benefit amount would be calculated as follows:

Partial Benefit Amount= $110- ($76.50- (.50 ($110.00)))

                                             =$88.50

                                             =$89.00 (raised to the next highest dollar)                            

Day Eleven Lesson:

1. In Illinois, You still may Receive Unemployment Benefits if You Work Part Time Provided that Your Earnings are Less than the Benefit Amounts.

Total Contacts Reached Out To: 32

Total Applications: 29

Calculation of Unemployment Insurance Benefits/ COBRA

Unemployment Insurance Benefits

In addition to the job search (not many jobs posted on Monday; hopefully it’ll pick up tomorrow), I worked on unemployment insurance and health insurance today. 

The unemployment insurance calculation is complicated because I spent up to mid-October in Japan last year.  For calculation of the amounts you’ll receive for unemployment in Illinois, you have a base period made up of four out of the five most recent prior calendar quarters of work.  This base period starts on the effective date of your first valid claim and does not include the current quarter or the one immediately before that.  From those four quarters, you take the two in which you earned the most income and then add the income amounts therein.  From the sum of the income of those two highest earning quarters, you refer to a chart (link below) to determine your weekly amount of benefits.

For example, I lost my job this quarter (Jan. 1, 2017-Mar. 31, 2017), so I look back at the five quarters before that, (1.Oct. 1, 2016- Dec. 31, 2016; 2. July 1, 2016- Sept. 31, 2016; 3. Apr. 1, 2016- June 31, 2016; 4. Jan. 1, 2016- Mar. 31, 2016; and 5. Oct. 1, 2015- Dec. 31, 2015).  I ignore the most recent past quarter, Oct. 1, 2016- Dec. 31, 2016, and then from the remaining four:  July 1, 2016- Sept. 31, 2016; Apr. 1, 2016- June 31, 2016; Jan. 1, 2016- Mar. 31, 2016; and Oct. 1, 2015- Dec. 31, 2015, I take the two quarters I earned the most, add the income amounts therein and use that amount in the chart below to determine my weekly unemployment benefit amount:

http://www.ides.illinois.gov/IDES%20Forms%20and%20Publications/CLI110L.pdf

Only months in which your employer contributes to the Illinois Department of Employment Security from your paycheck qualify for the base period calculation.  Since I was in Japan until mid-Oct. 2016, the base year calculation above doesn’t give me any benefits at all since the Oct. 1, 2016- Dec. 31, 2016 quarter is not included in such calculation. Further, one needs to be paid $1,600 or more in wages during his/her base period for insured work, and at least $440 of his/her base period wages at any time during the base period outside the calendar quarter in which his/her wages were the highest. As a result, I do not qualify for benefits. 

It should be noted that there is an alternate scheme that uses Jan. 1, 2016 to Dec. 31, 2016 for your base period if you are completely ineligible (based on income earned) to claim unemployment insurance benefits.  If I use this, I still will be unable to receive benefits if I file this calendar quarter because outside the Oct. 1, 2016- Dec. 31, 2016 quarter, I did not earn at least $440 in my base period.

However, starting the next calendar quarter, the alternate scheme uses Apr. 1, 2016 and Mar. 31, 2017 as the base period.  To qualify for the $1600/$440 minimum wages, I'll need to file on or after April 1, 2017 and use the alternate base period in order to qualify for benefits. I’ll call the unemployment office to confirm that I can use this alternate base period tomorrow.

I’ll go more into unemployment insurance in the next few days.

COBRA

I also contacted my health insurance agent, Allen, to ask him to send me quotes for bare bone health insurance plans.  Losing your job is one of those events that allows you to enroll in a new plan outside the yearly open enrollment period. At the end of the month, we are going to let our current health plan, which is awesome, expire. Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), we are able to continue with our current health insurance plan if we pay the full amount of the premium.  Unfortunately, my former employer paid 75% of the premium and we cannot nearly afford the full amount of the premium right now. Accordingly, we will enroll in a much cheaper plan. Sucks.  

The unemployment insurance calculation and loss of a good health insurance plan were bummers but I did get a second interview with the company I interviewed with last Thursday. The second interview is next Monday. This one will be with an Assistant General Counsel of the company. I still don’t think I have much of a chance for the role, but I’m going to continue improving my skill set required for the position at a breakneck pace via internet research and reviewing materials.

Finally, here’s a shameless plug for the McDonald's shamrock shake.  You only have five more days to get one. I got one over the weekend to reward myself for my hard work in week one of the job search. You earned one too, so go get it.

Day Ten Lesson:

1. In Illinois, There is an Alternate Base Period for Calculation of Unemployment Benefits Under Certain Circumstances.

Total Contacts Reached Out To: 32

Total Applications: 27