Final answer:
The EI benefit is typically 55% of a worker's average earnings during the last 14 to 26 weeks of employment before they became unemployed. Funded by a federal tax on employers, unemployment benefits serve as a financial safety net, lasting up to six months and varied by state.
Step-by-step explanation:
The EI benefit is generally 55% of average earnings during the last 14 to 26 weeks of a worker's employment. Employers in every state contribute to unemployment insurance, creating a fund that provides benefits to workers who have lost their jobs and are seeking new employment. These benefits typically last for a period of up to six months, but states may extend this duration during times of high unemployment. The level of the unemployment insurance benefit can vary greatly from state to state, with the average benefit amounting to about one-third of the worker's previous wage.
The funding for unemployment benefits comes from a federal tax levied on employers, which is required on the first $7,000 in wages paid to each worker. Some states may set higher wage limits for tax collection. Most states cap the benefit period at 26 weeks, with possible extensions. This structure ensures that individuals who find themselves unemployed have a temporary safety net to support them financially while they search for new employment.