Determining Eligibility

• Your eligibility is determined by several factors. If your earnings are substantially cut, but your weekly income is still above your states maximum weekly unemployment benefit, you probably won't qualify. To determine your state-specific rules, contact your state Department of Labor. You must have been treated as an employee and not an independent contractor. Even if you were paid as "commission only," but still had taxes withheld, you might be eligible for benefits.
  
  

Base Wage Calculation

• The base period for determining wages is the past five quarters of income. Your "personal base period" is the first four of the last five quarters from the date that you file your claim. Your benefit is arrived at by taking your highest-earning quarter within the qualifying base period. For example, if the first four of the previous five quarters showed wages of $5,000, $4,000, $4,500, and $5,600, your benefit would be calculated based on $5,600 (See References 3).
  
  

How to Apply

• Contact the Employment Development Department -- or equivalent -- department in your state to file a claim. For example, in California the Employment Development Department handles unemployment claims, but in Kentucky claims are handled by the Kentucky Office of Employment. The agency will request the reason for your loss of work or your reduction in income. You will also probably be required to conduct a phone interview with someone from a representative of the state department.
  
  

Considerations

• You may be eligible for a claim even if you are still working. This may be particularly applicable if you are on commission but your commission rate gets lowered. You must provide proof to the state administering agency that you have been treated as an employee and that your income --even if from commission -- has been substantially reduced. Most states also have an appeals process available if your claim is initially denied.