How Much Are Delaware Unemployment Benefits?

In Delaware, unemployment benefits provide financial support during job transitions. The amount an individual receives is based on past earnings and influenced by various factors. This article details how weekly benefits are calculated, what can affect the total amount, and their typical duration.

Calculating Your Weekly Benefit

Delaware’s unemployment insurance system determines an individual’s Weekly Benefit Amount (WBA) based on earnings during a defined “base period.” This period encompasses the first four of the last five completed calendar quarters immediately preceding the effective date of a claim. For instance, if a claim is filed in March, the base period spans from October 1st of the previous year through September 30th of the year before that.

To calculate the weekly benefit, the Delaware Department of Labor considers the wages earned in the two highest-paid quarters within this base period. The sum of wages from these two quarters is then divided by 46 to determine the weekly benefit amount. For example, if an individual earned $10,000 in their highest quarter and $9,000 in their second highest quarter, the total is $19,000. Dividing $19,000 by 46 yields a weekly benefit amount of approximately $413.04.

Delaware law establishes both a minimum and a maximum weekly benefit amount. The minimum weekly benefit is $20. The maximum weekly benefit is $450. If the calculation of 1/46th of the two highest quarters’ wages exceeds this maximum, the individual will receive the cap.

Factors Affecting Your Total Benefits

Several factors can adjust the weekly benefit amount or total benefits received. Earning income from part-time work while collecting unemployment benefits can lead to a reduction in the weekly payout. Delaware law allows claimants to earn a certain amount without their benefits being affected; specifically, the first $10 or 50% of the weekly benefit amount, whichever is greater, is disregarded. Any earnings above this disregard amount are deducted dollar-for-dollar from the weekly benefit.

Unemployment benefits are subject to federal income tax, and individuals have the option to have taxes withheld from their payments. Claimants can choose to have federal income tax withheld at a rate of 10% from their weekly benefits. This withholding election can be changed only once per calendar year. While federal taxes can be withheld, Delaware state income tax is also applicable to unemployment benefits, though direct state tax withholding from benefit payments is not offered.

Mandatory deductions from unemployment benefits can also occur. Child support obligations are one such deduction, as the Delaware Department of Labor intercepts unemployment compensation for these purposes. The amount garnished for child support is limited by federal law, up to 50% of disposable earnings, but can be higher in cases of significant arrears.

Overpayment recoupment is another factor that can reduce current or future benefits. If an individual receives unemployment benefits for which they were not entitled, the amount must be repaid to the state. For non-fraudulent overpayments, the Delaware Department of Labor may deduct 50% of subsequent weekly benefit amounts until the overpayment is fully recovered. However, if the overpayment resulted from fraud, 100% of future weekly benefits can be deducted, and additional interest or penalties may be assessed. The Department has the discretion to waive non-fraudulent overpayments under specific conditions, such as Department error or if the claimant receives certain low-income public assistance.

Understanding Benefit Duration

The standard duration for receiving unemployment benefits in Delaware is up to 26 weeks. This maximum period is contingent on continued eligibility and adherence to program requirements, including actively seeking work. The total amount of benefits an individual can receive throughout their benefit year is either 26 times their weekly benefit amount or 50% of their total base period wages, whichever calculation results in a lower overall sum.

In times of elevated unemployment, additional weeks of benefits may become available through programs such as Extended Benefits (EB). These programs are triggered when a state’s unemployment rate reaches certain thresholds. Delaware, like other states, can offer up to 13 additional weeks of benefits under the Extended Benefits program when economic conditions warrant it. These extended benefit programs are not continuously active and depend on specific state and federal economic indicators. Federal pandemic-related unemployment benefit extensions, such as those under the CARES Act, have since expired.