What is Partial Unemployment?
Partial unemployment occurs when a person works reduced hours, through no fault of their own, and is sometimes referred to as “underemployment.” The difference in hours/days claimed often results in the state reducing benefits by a certain amount or percentage.
How Does Partial Unemployment Work?
Claimants for partial unemployment need to certify their benefits each week at their state unemployment office, including reporting the number of days/hours they worked in the previous week.
The amount of your unemployment benefit is determined by the state in which you live and is typically based on the value of what you did or earned versus the work you performed and the number of hours you worked. The state usually sets a reasonable weekly amount and then deducts the amount you earn from work each week.
How to Apply for Partial Unemployment
The application process for partial unemployment matches that of regular or full-time unemployment. To apply for a new claim or check your eligibility, visit your state’s Department of Labor website. Most states have a FAQ page, which is a great resource to address any questions you have about eligibility that may be easier than contacting the organization directly.
Potential Pitfalls
Partial unemployment may limit the amount of money you can earn, resulting in a difficult situation. For example, if your benefit amount is calculated at $300 a week, and you earn $350 a week in part-time work, you may have earned too much to qualify for unemployment benefits.
Unemployment Due to COVID-19
On December 27, 2020, former President Donald Trump signed the Consolidated Appropriations Act of 2021 extending unemployment assistance benefits for the unemployed and part-time workers, which provided an additional $300 per week in extra unemployment benefits until March 14, 2021.
How to Save Money While Partially Unemployed
It may be challenging but not impossible to save money and budget your finances while being partially employed for an extended period. “Start budgeting or modifying your existing budget as soon as possible and look for opportunities to cut spending and increase cash flow,” according to Tain.
If you have leftover money in your budget, you are advised to transfer some funds each week to a savings account. If you save just $10 a week, it will amount to over $500 by the end of the year.
Also, stay on top of your bills to ensure that your credit score does not suffer. “It may be a good idea to contact lenders and explain that you are experiencing financial hardship due to the pandemic after applying for unemployment,” according to Tain. “While you will still be responsible for the debts you owe, the lender may have assistance programs or can waive interest or late fees, or assist you in some other way.”
Source: https://www.thebalancemoney.com/how-to-file-for-partial-unemployment-5105157
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