Unemployment insurance in Mississippi

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  • California Department of Human Resources Development v. Java
  • Geduldig v. Aiello
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  • United States v. Lee
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• Unemployment insurance in the states
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• Index of articles about unemployment insurance

Unemployment insurance
• Terms and definitions • Court cases • Unemployment insurance programs in the states • Reform proposals related to unemployment insurance • Reform activity in the states related to unemployment insurance • Index of articles about unemployment insurance
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See also: Unemployment insurance in the states

Unemployment insurance is a term that refers to a joint federal and state program that provides temporary monetary benefits to eligible laid-off workers who are actively seeking new employment. Qualifying individuals receive unemployment compensation as a percentage of their lost wages in the form of weekly cash benefits while they search for new employment.

The federal government oversees the general administration of state unemployment insurance programs. The states control the specific features of their unemployment insurance programs, such as eligibility requirements and length of benefits.

Although the word insurance is in the term, a few key differences distinguish unemployment insurance from private insurance plans such as home insurance, car insurance, or health insurance. In most states, employers—rather than individuals themselves—pay unemployment taxes that fund state unemployment insurance programs. When an individual loses their employment (and meets eligibility requirements), state-administered unemployment insurance programs provide temporary monetary benefits to the former employee. Unemployment insurance compensation is not intended to replace lost wages; it is designed to replace a portion of the individual's lost wages with the goal of providing financial support as an individual searches for a new job.

This page provides information about the unemployment insurance program in Mississippi.

Background

See also: Unemployment insurance

The joint federal-state unemployment insurance program provides temporary monetary payments to individuals who have lost employment through no fault of their own. Laid-off workers must actively seek new employment in order to receive unemployment benefits.

The unemployment insurance program was established in 1935 through the Social Security Act (SSA). Congress at the time aimed to develop a means to help mitigate the effects of widespread job losses that had occurred during the Great Depression. Due to concern that the U.S. Supreme Court would find a national unemployment insurance program unconstitutional, Congress designed a federal payroll tax mechanism that incentivized states to set up their own unemployment insurance programs under the direction of broad federal guidelines. According to the program, states deposit unemployment insurance tax funds into the Federal Unemployment Trust Fund, which the federal government then credits to state accounts to pay unemployment benefits.

The federal government operates as a general overseer of state unemployment insurance programs in order to ensure proper program administration. States retain control over their specific programs and can determine state-specific conditions, such as eligibility requirements, benefit amounts, and duration of benefits. States with unemployment insurance programs that meet federal standards are eligible for federal grants to assist with administrative costs.

The Mississippi unemployment insurance program is administered by the Mississippi Department of Economic Security.

Timeline of unemployment insurance program in Mississippi

The following timeline features selected key events in the history of Mississippi's unemployment insurance program. The timeline is not a comprehensive history of the state unemployment insurance program.

• 1938: As of May 1, 1938, Mississippi's unemployment insurance program offered a maximum weekly benefit amount (WBA) of $15 for up to 14 weeks.

• 1985: As of January 1, 1985, Mississippi's unemployment insurance program offered a maximum WBA of $115 for up to 26 weeks.

• 2021: A March 2021 report from the U.S. Department of Labor found that the trust funds in 10 states and territories, including Mississippi, were above the recommended minimum solvency standard as of January 1, 2021. Forty state trust funds were below the minimum solvency standard.

• 2022: A March 2022 report from the U.S. Department of Labor found that Mississippi had an AHCM value of 1.10.

• 2024: A March 2024 report from the U.S. Department of Labor found that Mississippi had an AHCM value of 1.24.

Funding

See also: Unemployment taxes, Federal Unemployment Tax, State unemployment tax

The unemployment insurance program is funded by state and federal taxes on employers, or unemployment taxes.

While state tax amounts vary, the Federal Unemployment Tax Act (FUTA) tax is 6% of the first $7,000 of an employee's wages. Employers can receive an offset of up to 5.4% of their FUTA tax when they pay state unemployment taxes on time. An employer that receives the full 5.4% FUTA credit, therefore, pays 0.6% of the first $7,000 of an employee's wages, or $42, in FUTA tax per qualifying employee.

New employers begin paying into the unemployment insurance system at the new employer rate. Depending on state laws, employers that have paid unemployment insurance taxes for a set time period (usually a few years) receive an experience rating. The more unemployment claims an employer has, the higher their tax rate.

States that exhaust their unemployment insurance program reserves can borrow from the federal Treasury through the Title XII program. States must repay their unemployment insurance program debts within two to three years or the federal taxes on employers in the state automatically increase until the debt is paid. In states that are overdue in repaying unemployment insurance debt to the federal Treasury, the FUTA tax offset is reduced.

Benefits

Mississippi Department of Economic Security instituted changes to the state's unemployment insurance program during the coronavirus (COVID-19) pandemic. Click here for more information.

The standard term of unemployment benefits is 26 weeks, but specific terms vary by state. For example, Arkansas paid 16 weeks of benefits as of 2022. Massachusetts, on the other hand, paid 30 weeks of benefits and Montana paid 28 weeks of benefits.

The following sections provide information about specific benefits available through Mississippi's unemployment insurance program.

Length and amount of standard benefits

The Mississippi unemployment insurance program provided up to 26 weeks of benefits as of August 2024. Benefit amounts ranged from a minimum of $30 a week to a maximum of $235 a week.

Extended benefits

During periods of high unemployment, extended benefits up to 13 weeks, depending on the state, are available to workers who have otherwise exhausted their unemployment insurance benefits. Extended benefits up to 20 weeks may also be available in some states during periods of extremely high unemployment.

The Mississippi unemployment insurance program did not provide extended benefits as of August 2024.

Eligibility requirements

Mississippi Department of Economic Security instituted changes to the state's unemployment insurance program during the coronavirus (COVID-19) pandemic. Click here for more information.

The following sections provide general information about unemployment insurance program eligibility as well as specific eligibility information for Mississippi's unemployment insurance program.

Background

Eligibility criteria for unemployment insurance recipients vary by state. In general, recipients must have lost employment through no fault of their own. The unemployment insurance program does not cover individuals who voluntarily leave their positions, who are fired for just cause, or who are seeking to reenter the workforce after a voluntary exit. Nor do unemployment insurance programs generally cover first-time job seekers, students, self-employed individuals, gig workers, or undocumented workers.

States also require that recipients meet certain work and wage thresholds. Unemployed workers in most states must have worked for a minimum amount of time or must have received a minimum amount of earnings from their employer (between $1,000 to $5,000 in 2019) in order to be eligible to receive benefits.

States generally require individuals to perform the following tasks in order to maintain weekly eligibility, according to the U.S. Department of Labor:

“

File weekly or biweekly claims, usually by mail or phone. Be able to work, available to work, and actively seek work each week you claim benefits. Report any earnings from work you had during the week(s). States have different rules for how much money you can earn while receiving benefits. Report any job offers or job offers you decline during the week. If requested, report to your local UI claims office or American Job Center on the scheduled day and time. Benefits may be denied for those who do not attend. Some states require registration for work with the State Employment Service, so it can assist you in finding employment. Meet any other state eligibility requirements.

”

Recipients must report their unemployment insurance benefits as part of their gross income on their tax returns.

Mississippi eligibility requirements

Unemployment insurance recipients in Mississippi must meet the following criteria in order to qualify for benefits:

• Recipients must have lost employment through no fault of their own.
• Recipients must have earned wages in two of more calendar quarters during the base period—the first 12 months of the 15 months prior to filing a claim. Claimants have to earn at least $780 in the highest quarter of their base period. Base period earnings also have to equal 40 times the weekly benefit amount.
• Recipients must be unemployed or partially employed and earning less than their weekly unemployment insurance benefits.
• Recipients must be able and available to work.

Unemployment insurance program solvency

The following sections provide general information about unemployment insurance program solvency as well as specific information about the solvency of Mississippi's unemployment insurance program.

Background

Federal unemployment insurance program guidelines recommend that states hold at least one year of projected benefit payments in reserves. States base the year of projected benefit payments on the highest level of unemployment insurance payments experienced during the last 20 years.

States determine their program solvency by using the Average High Cost Multiple (AHCM)—the ratio of the state's trust fund balance to the average of its three highest years of unemployment insurance payments. States with an AHCM below 1.0 risk insolvency.

As of a January 2024 report, 18 states had trust funds operating at or above the minimum solvency standard. Two states had trust funds with the lowest (least solvent) AHCM value of 0.00.

The map below identifies AHCM values by state as of January 2024. States shaded green have AHCM values above 1.0, while red states have AHCM values of 0.00. Gray states have AHCM values above 0.00 but below 1.0.