The Unemployment Insurance Program, commonly
referred to as UI, provides weekly unemployment
insurance payments for workers who lose their job
through no fault of their own. Eligibility for benefits
requires that the claimant be able to work, be seeking
work, and be willing to accept a suitable job.

Background

The UI program is financed by employers who pay
unemployment taxes on up to $7,000 in wages paid to
each worker. The actual tax rate varies for each employer,
depending in part on the amount of UI benefi ts paid to
former employees.

UNEMPLOYMENT INSURANCE PROGRAM
Claimant Benefits
The amount for benefits available is based on the
claimant's earnings in the base period. To qualify for
benefi ts in California, a claimant must have (1) earned at
least $1,300 in the highest quarter of the base period, or
(2) have earned at least $900 in the highest quarter and
earned total base period earnings of at least 1.25 times
the high quarter earnings. For example, if the claimant
has $900 earnings in the highest quarter, he/she is also
required to have earned a total of $1,125 in the base
period ($900 x 1.25 = $1,125).

The maximum amount of a regular UI claim is either
26 times the claimant's weekly benefi t amount or
one-half of the claimant's base period wages, whichever
is less.

Claimant Eligibility Requirement
Since the law's intent is partly to compensate a worker
for loss of wages while unemployed, a claimant's
eligibility for benefi ts depends on having a substantial
attachment to the labor force. One of the methods
used to measure this attachment is a minimum
earnings test.

This requirement denies benefits to claimants whose
earnings in a 12-month "base period" are below the
minimum noted above on the assumption that low
earnings indicate a short or temporary attachment
to the labor force. The "base period" is 12 months
long, but it is important to think of it as 4 quarters of 3
months each. The quarter in which the highest wages
were received determines the weekly benefi t amount.
When an individual's base period begins depends on
when the UI claim is fi led. The most recent 3-5 months
before the claim is fi led are omitted; therefore, the base
period is the 12 months beginning some 15 to 17 months
before the claim was fi led. For example, all claims fi led
in April, May, or June would have a base period of
12 months beginning January 1 of the previous year
and running through December 31. All claims fi led in
July, August, or September would have a base period
beginning in April of the previous year and ending
March 31 of the current year.

P.O. Box 826880 • Sacramento CA 94280-0001
DE 8714B Rev. 19 (5-08) (INTERNET)

Claimant Taxes
Unemployment insurance is considered taxable income
and must be reported as such on federal income tax
forms.

For More Information
For further information, call EDD at:
English .................................... 1-800-300-5616
Spanish ................................... 1-800-326-8937
Cantonese ............................... 1-800-547-3506
Mandarin ................................. 1-866-303-0706
Vietnamese ............................. 1-800-547-2058
TTY (non-voice)....................... 1-800-815-9387

or visit EDD's Internet site at www.edd.ca.gov.