Math Question on Unemployment Insurance

Factual Questions
1

I’m trying to de-convolute my state’s unemployment insurance benefit policies, and I’m not quite able to wrap my head around the necessary math.

In my state, the weekly benefit is effectively half of your average pay over the last two quarters, up to a maximum benefit of $350 (I’d be under that cap).

You also potentially qualify for UI benefits if your hours have been cut, using a slightly convoluted system.

If you are still working and earn up to 20% of your maximum benefit (so 10% of your previous pay), it does not count as income for this purpose. Every dollar you earn in excess of 20% is deducted dollar-for-dollar from your benefit.

Here’s the math question: by how much would my hours have to be cut before I would qualify for at least $1 in UI benefits?

(Don’t need answer fast. But, this isn’t entirely theoretical; my hours are going to be cut the week after next, but not by enough to qualify for UI benefits under the formula above. But, they may be cut more in the future; I’m trying to figure out at what point it makes sense for me to file for UI benefits, if it comes to that).

2

If they cut your hours 40% and then cut your pay one more dollar, you would get one dollar in UI benefit.

The rub is, if they have 25 employees and a 40% reduction in business, they could lay off 10 people and those people get full 50% benefit. OR, they could just reduce everyone from 40 hours to 24 hours. Because no one’s pay is less than 60%, no one gets UI benefit.

Two quarters later, they could reduce your hours from 24 per week to 16 per week and since that 33% reduction is less than 40%, no one would again get any UI benefit.

3

Thanks.