Unemployment Benefits Definition

Unemployment benefits are payments made by the US government to individuals who are involuntarily unemployed. The system is funded by mandatory payments made by employers. The system is intended to provide a financial safety net for people who lose their jobs, allowing them to pay the necessary bills until they secure another job.

Applying for unemployment benefits can be a hassle, but then again when you’re unemployed you’ve got the free time. And if you think applying for the money is a headache, just wait until you try and figure out if you owe taxes on it! A variety of federal and state laws govern the unemployment benefits programs available, and in the US compensation payments do not extend indefinitely.