If you do not have a satisfactory backup plan, losing your job can lead to financial ruin. Fortunately, unemployment insurance can protect eligible workers. Unemployment insurance is a national benefits program that provides monetary assistance to eligible individuals who are unemployed. If you lost your job due to no fault of your own, it can be important to apply for unemployment insurance immediately to receive compensation.  

Contact legal professional services firms if you want to get the benefits you deserve without facing unnecessary hindrances. An experienced lawyer can stand by your side and help to make the process smoother.

What is unemployment insurance?

The “insurance” in unemployment insurance is the key to explaining its importance. Benefits are paid from taxes that are levied on employers rather than employees.  

In theory, the system provides a way to help people get their next source of income. At the same time, unemployment benefits allow you to pay your mortgage, keep food on your family’s table, and prevent you from losing everything. Texas unemployment insurance programs are designed to enable you to maintain financial security while you are unemployed. This, in turn, is good for the economy. 

What Is Unemployment Insurance

Unemployment benefits can also have a positive impact on preventing the underemployment of workers. For example, with unemployment benefits, an engineer can find a new job full-time in their area of ​​expertise. This can prevent your re-employment time in your specified field from being delayed because your financial situation forces you to work in a low-paying or low-skilled job to make ends meet. 

To some extent, unemployment benefits are a preventive measure. Although the help is passive, these benefits are designed to prevent other major problems from forming. Texas unemployment insurance benefits generally allow individuals or families to stay away from other government programs and services and recover faster.

How does unemployment insurance work? 

Enterprises of a specific size must pay unemployment insurance taxes based on the wages that they pay to their employees. The government then uses that money to pay benefits to workers who lose their jobs due to layoffs or other unavoidable circumstances. 

Although all states follow the same general federal guidelines for this plan, the finer points of unemployment insurance may vary from state to state. For example, each state has set its own set of eligibility requirements, and the amount of unemployment benefits you can receive may also depend on where you work.

Will unemployment insurance substitute all of my wages? 

Unemployment insurance is not designed to replace your entire salary. Rather, it is designed to replace part of your income to help you maintain financial stability while you look for a new job. The weekly benefits may depend on your income from before you lost your job and the state where you worked. In addition, the unemployment benefits you receive are taxable. Generally, you can choose to withhold taxes when you file your return or pay taxes on your benefits.

Who is eligible to receive unemployment benefits? 

To qualify for unemployment benefits, an individual must meet three criteria, regardless of the state of residence. They must be:

  • Able to work
  • Available for work 
  • Actively searching for work

These requirements meet the official definition of unemployment by the Bureau of Labor Statistics. 

Unemployment benefits apply to workers who have lost their jobs through no fault of their own. Under normal circumstances, workers are not eligible for benefits if they voluntarily resign, are looking for their first job, or are self-employed. 

If you are fired for gross negligence, you are also not eligible for benefits. When you are fired or fired for reasons other than gross negligence (such as personal reasons), then you might be eligible. The self-employed generally cannot receive unemployment benefits, no matter why they are unemployed. 

Once your unemployment claim is approved, you generally must apply for weekly benefits. To keep getting paid, you must actively look for work. Some states may even require that you present a job search certificate or attend required training courses to continue receiving benefits.

How can you check your unemployment status in Texas?

Workers who meet the eligibility requirements may be able to receive unemployment benefits in Texas. The authority responsible for handling these claims and benefits is the Texas Workforce Commission (TWC). You can either call the representative at the toll-free number or can apply online for benefits. Many applicants often proceed with the online application by logging on and selecting “Apply for benefits”. 

Submitting these claims online can be a seamless process, and you can check the status of your application on the web page. It is critical to note that the TWC does not process any information through third-party apps. You can consider applying online in the overnight hours to avoid delays. 

There are two ways you can check your employment status and claim status in Texas: 

  1. Online 
  2. Call toll-free number 

The Unemployment Benefits Services section will show you the status of your application online. If you are having trouble checking it online, you can call the toll-free number at 800-558-8321. The representatives will ask for a few details and then help you proceed with your claim. TWC will contact your last employer and take information from them. They will do so to evaluate your application and eligibility. If you meet the eligibility criteria, you can receive your benefits. They will also send your last employer a letter explaining why you had submitted for unemployment benefits. 

Why is unemployment insurance important today?

Income loss can have a drastic impact on the well-being of individuals, families, and the economy. Many of the problems caused by a loss of income can lead to additional difficulties in finding another job, creating a cycle of problems and forcing people to rely on other social services that do not provide a viable solution. Unemployment benefits help bridge the gap between jobs while avoiding many of the issues associated with a lack of income.

Although unemployment insurance  programs may change based on economic conditions and individual state decisions, they all have the same purpose: they help eligible workers who have lost their jobs by temporarily replacing part of their wages. The state of Texas unemployment compensation is significant in economic downturns and recessions, especially during a pandemic.