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Thriving through Unemployment
 

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Figuring out if you can afford to take a job

By Laura Dawn Lewis

Excerpt from Laid Off, Now What?!?
Thriving Financially through Unemployment

Sometimes it is better to continue on unemployment rather than take a lower paying job.  The following will help you figure out if you can afford to take a job at low pay or if you should hold out for something better.

In the state of California, maximum unemployment is $450 a week (the average payment in April 2009 was $315 or 70% of the maximum).
 

The maximum payment is equal a $21,600 net per year job, ($34,000 gross). As an hourly wage this translates to net $10.38 per hour full-time work or gross $16.35 per hour. Barring any emergency extensions, the maximum you can receive in California is approximately $10,350. To be eligible for the maximum you must make at least $46,696 per year gross. The maximum compensation is based upon 23 weeks.

By comparison, in Washington State the cost of living is 10% less than California, maximum unemployment per week is $510 with a total benefit of $15,300 over 30 weeks. This is nearly 50 percent more than California. To receive the maximum you must have earned at least $51,000 per year. Your unemployment benefit is equivalent to $26,520 net, ($35,802 gross) a year job or net hourly wage of $11.19, gross $17.21 per hour.

Though Washington pays substantially more and takes into consideration the average household income in the United States, (currently near $50,000), for the person earning $38,376 per year in either state, the compensation is similar. California pays $370 and Washington pays $383.

The disparity resides within the cost of living. Most families in California's major cities live near poverty on $38,000 per year. In Washington this is a decent middle-class living, outside of Puget Sound.

Why do you need to understand what your benefits are worth? If you decide to take temporary, freelance, or seasonal work to augment your unemployment, you want to make sure you're not reducing your income or jeopardizing your future benefits. In most cases you will lose your unemployment during the period worked and getting it back can be quite difficult. Generally, the state unemployment office will conduct an investigation into the company where you worked. The reason for this is to determine who pays the unemployment, the company you just worked for or the company that originally let you go. If you took this temporary job and quit, in most cases you will permanently lose your unemployment compensation.

If you took this position as a temp employee or as a contract worker and stayed through the end of the contract period, you should be able to reopen your unemployment claim. You will need to prove you were not an employee of the company. To do this, show the state the original contract signed before the work commenced that explicitly states you are a temporary contract worker.

 
 

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