Filing For Unemployment as a Traveler

Thankfully, and I mean THANKFULLY, this has not yet become my reality but for many full time and traveling therapists, nurses, etc, this has become theirs.  Personally, many of my friends, past colleagues, and fellow travelers have been asking questions about the process of applying for unemployment insurance as COVID-19 has proven that job security in healthcare isn’t as safe as we once thought. So, I figured diving in to answer as many of these questions as I could would be helpful.  

Plus, there is a strong chance that after my current contract is up at the end of May, I may be applying for unemployment as well since the traveling job market is as cold as ever which is to be expected. So rather than learn what to do then, I think this article will help me to be proactive regarding my own situation as well. 

Key Points

• Travelers in most circumstances qualify for unemployment
• If you qualify for regular unemployment you immediately qualify for the additional $600 dollars
• Travelers who worked in multiple states trying to determine which state to file in should contact their tax home state to set up a “combined wage claim” (more details below)
• Unemployment compensation will not need to be paid back and will be viewed as taxable income for next year’s taxes.
• Claiming unemployment will not affect your credit score
• It is likely best to apply for unemployment via the phone as online portals are often not updated to reflect the new changes under the CARES act if you have a more unique working situation as a traveler.

Can a Traveling Healthcare Provider Claim Unemployment?

Yes. A traveling position is no different than a full time position as we are still W2 employees in most circumstances. Although unemployment assistance has also been extended to “gig workers” and self employed workers as well under the CARES act.   

Prior to COVID-19 qualifying for unemployment was defined as losing one’s job through no fault of your own and meeting certain state specific requirements. 

New expanded criteria following COVID-19 outbreak

To qualify:

• You lost your job due to COVID-19 
• Your hours were cut due to COVID-19
• You were furloughed due to COVID-19
• Your company closed permanently or temporarily due to COVID-19
• You are quarantined and unable to work due to COVID- 19
• You are unable to work as you are caring for a family member due to COVID-19 

AND

You met the minimum hours or earnings threshold during the “base period” determined by the state you are applying in.    For most states, the base period is the first 4 quarters of the last 5 quarters you worked. 

However, this section is very gray at the moment as many states appeared to have changed some of these requirements which is great for new grads or others who haven’t reached the required hour or income thresholds yet. Those in this situation likely will need to call in to speak to a representative as I am hearing that many of the online portals are not updated for this change yet. 

What doesn’t qualify?

If you quit your job without “good cause”.  So please don’t quit your job with the idea that you will just collect unemployment as you will likely be denied.

There are certain circumstances that are however considered “good cause” to need to quit your job.  Below are some common causes but by no means a comprehensive list:

• If you are the primary caregiver of someone whose school or facility closed due to COVID-19
• You can no longer commute to your job due to COVID-19

If you are uncertain your reason for quitting was with “good cause”, it’s likely worth still applying as each state has slightly different definitions of what qualifies “good cause”. 

How Much Unemployment Compensation Will I Receive? 

Again this varies by state, but it is assumed that you will receive about half of your previous taxable income each week up to a cap that is set by your state.  

Do I Qualify for the Additional $600 of Pandemic Unemployment Compensation?

If you qualify for unemployment in your state, then you automatically qualify for the additional $600 dollars of weekly pay. 

Even if you only qualify for $1 of unemployment benefits, you will still receive the additional $600.

Which State Should I Claim Unemployment In? 

As of right now, this is where the biggest confusion begins regarding travelers filing for unemployment.  For permanent staff, you simply apply in the state that you work in.

As travelers, since we work in multiple states, have a tax home state, and are employed from a traveling company in a third state, this process can get rather confusing.

I reached out to my company’s HR department to clarify this confusion and received this email:

“Yes, (insert my company) employees may qualify for unemployment.  This will be determined based on reason for end of assignment and will be determined by the unemployment office officials.

We suggest for best unemployment filing you reach out to (insert my company’s home state) unemployment office and they can best support your specific claims questions.”

So basically, they are unsure as well. 

Finally I found this statement from the United States Department of Labor which offered some clarity:

“Generally, you should file your claim with the state where you worked. If you worked in a state other than the one where you now live or if you worked in multiple states, the state unemployment insurance agency where you now live can provide information about how to file your claim with other states.”

So their advice is to call your tax home states unemployment office to determine based on your unique set of circumstances where you should file.  

They will help you to set up a “combined wage claim” which is a “program allows an unemployed individual with employment and wages in more than one state to combine his/her wages to establish a CWC under the law of a single state to qualify for benefits.”

If you do happen to file in the wrong state, you will simply get denied and you will have to start this process over again. 

How Do I Claim Unemployment?

You will need to contact the unemployment office of the state that you are applying to.  You can apply over the phone or online.  Although wait times are very long, more travelers right now are having more success for their unique circumstances filing over the phone.  So it may be worth the long wait times. 

What will I need?  

• Social security number
• Driver’s license (if applicable)
• Mailing address
• Phone number
• Bank info for direct deposit
• Employment history over the last 18-24 months. 

Employment History? 

• Name of employer on W2 (your traveling company)
• Employer’s address and phone
• Start and end date
• Supervisor
• Wage information
• The reason you are no longer working.

How Long Does My Claim Take to be Processed?

The U.S. Department of Labor established a timeliness period of 21 days to determine eligibility.  Although many are finding out if they qualified much sooner than this. 

If I am Denied Unemployment, Can I Appeal?

Yes, you are allowed to appeal after you receive a denial statement.  Most states require appeals to be made 10-30 days after receiving a denial statement. To appeal, follow the instructions given on your denial statement or visit your individual states unemployment website. 

When Will My Unemployment Benefits Begin?

Typically, most states have a “waiting week” which is the first week following job loss in which no benefits will be received.  Benefits will then begin for that following week.  Although, due to the crisis, many states are waiving this week to get benefits to people faster. 

Note: Pandemic Unemployment Insurance will also allow workers to claim retroactive benefits back to as late as January, 2020. So make sure to claim back to when you lost your job, not when you first applied for benefits.

How Long Can I Claim Unemployment For?

Typically, you are able to claim unemployment for for up to 26 weeks.  However, this was recently extended another 13 weeks due to this crisis period. After these 39 months, if you still find yourself unemployed a possible “extended benefits” program could be triggered to provide you another 13 weeks or more of benefits.  Although this is very situation dependent and just because you qualify for regular unemployment insurance does not guarantee you will qualify for extended benefits. 

How Often Do I Need to File for Unemployment?

After filing your initial claim, you will need to file a weekly claim for every week you plan to claim unemployment benefits. Each weekly claim will consist of a series of questions determining if you still qualify for benefits.

If you forget to submit your claim that week, most states have a grace period around 14 days where you are still eligible to submit your weekly claim. 

What If I Just Started Working?

This gets a little tricky as well and might be state dependent.  Traditionally if you just started working, you would not qualify for unemployment benefits as you have not met the state income or hours thresholds we previously talked about.

However, many are finding that these rules are getting changed under the CARES act and many new workers are still qualifying for unemployment in certain states.  Most are finding success through in person calls as the online portals are often not updated.  This hasn’t held true in every state but it is worth calling and asking.

Am I Able to Claim Partial Unemployment? 

Yes, if your hours are cut you will still qualify for unemployment IF you are making under your states income cap.  

So for example if your state cap is $600 and you make $601, you will not qualify for any unemployment benefits. However, if you make $599, you will qualify for $1 plus $600 of the pandemic unemployment insurance. 

How Will Unemployment Affect My Taxes Next Year?

All unemployment benefits are viewed as taxable income and will reflect that when you file your taxes next year.  You should receive a 1099-g form which will be used to report your unemployment compensation.

Will Filing For Unemployment Affect My Credit Score? 

No, filing for unemployment will not affect your credit score.  However, it indirectly can if you are missing payments, etc.  Credit reports won’t even update your employment status unless you apply for a new line of credit.  However, being unemployed may make it difficult to get lending as they typically ask for income and employment history..

Conclusion

Unemployment can be very confusing, especially as the rules are constantly changing especially during crisis time like we are experiencing now.   Many times these rules are state dependent, so the best option if you still have questions is to call your tax home state’s unemployment office to get clarification. I also suggest applying via the phone if your circumstances are more unique.

If you have further questions for me, I’d be happy to attempt to answer them or direct you to someone else who can.

For all questions, feel free to email me directly at fiscaltherapist1@gmail.com. 

If you feel it is a question that will benefit more than just you, feel free to comment below and I will answer your question there.