Categories: General Tax Terms
Unemployment Compensation refers to a government-provided financial assistance program that offers temporary income support to individuals who have lost their jobs through no fault of their own.
This compensation is typically funded through taxes levied on employers and is administered at both state and federal levels. Eligibility requirements may vary by state but generally include a minimum amount of work and wages earned during a specified period.
For example, if a person is laid off due to company downsizing and meets the state’s eligibility criteria, they can apply for unemployment compensation, which will provide weekly benefits for a limited duration while they seek new employment.
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