Unemployment Insurance (UI)
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Unemployment Insurance (UI) is an insurance benefit that may be paid to people when they have lost their jobs and meet other eligibility criteria.
Policy
State governments pay unemployment insurance (UI) from a fund of unemployment taxes or payroll taxes collected from employers. UI payments are countable as unearned income.
NOTE This includes UI income received by participants who are under the age of 18.
Qualified Railroad employees receive UI benefits under the Railroad Unemployment Insurance Act (RUIA) which is administered by the Railroad Retirement Board (RRB).
Supplemental Unemployment Benefits
Supplemental unemployment benefits paid by an employer are countable as unearned income. These benefits are in addition to the Unemployment Insurance (UI) benefits that the participant may be receiving.
Procedures
When the participant is present, have them sign the Authority to Release (FAA‑1765A) form to contact any companies or businesses involved. The FAA-1765A can be faxed or emailed to the participant's employer when it is not possible to use the Application for Benefits (FAA-0001A) or the AHCCCS Release of Information Authorization signed statement.
Consider UI benefits available to the participant on the second workday(g) following the date benefits are issued. Use Household System Check (HOSC) to identify the date benefits are issued.
NOTE Supplemental unemployment benefit amounts are identified on HOSC in the FAC AMT field.
When a low balance shows for the participant’s UI benefits, complete one of the following:
●When the UI benefits can be removed from the budget one month after the current system month (CSM), complete all of the following:
Budget the UI benefits in the CSM based on the remaining balance.
Roll benefits to the month after the current system month(g) and remove the income.
NOTE When determined benefits should be rolled more than one month past the CSM, supervisor approval is required.
●When the UI benefits cannot be removed from the budget in the month after the CSM, complete all of the following:
Set a free form Auto Change Tracking System (ACTS) Alert for the first workday of the month before the month benefits are ending.
Indicate that UI benefits are ending.
When a free form ACTS alert is already created but the UI benefits are still active beyond the CSM, extend the alert to the first workday of the month before the month UI benefits are ending.
When the participant states they have recently moved to Arizona investigate the possibility of out of state UI benefits.
When the participant has possible UI benefits from California, it may be necessary to request verification from the State of California Employment Development Department (EDD). Mail an Authority To Release Information (FAA-1765A) form signed by the participant, along with a stamped, self-addressed return envelope to the California EDD Address. See California Employment Development Department (EDD) for wage and claim information from California.
Do not budget future UI benefits when any of the following occurs:
●When any of the following Pay Type Codes display in the PAY TYPE field on HOSC:
03 - Ineligible due to military waiting period
07 - Disqualified
10 - Waiting Week
12 - Pending unresolved issue
15 - Benefits exhausted
16 - Final pay
17 - Monetarily ineligible
28 - Claimant declines due to employment
NOTE When Pay Type Code 28 is used, there is a possibility the participant may have new employment.
●At the time of benefit approval, there is no date in the ISSUE DATE field on HOSC.
Verification
System interface and the case file(g) must be reviewed before verification is requested. No additional verification is needed when AZTECS interface or HEAplus hubs have verified the information.
The participant has the primary responsibility for providing verification. (See Participant Responsibilities – Providing Verification for additional policy.)
For NA, all of the following income is required to be verified before eligibility is determined:
●Reported on a new application, during the interview of a new application, or changes reported before the eligibility determination of a new application.
●Changes after an eligibility determination of a new application (e.g., a renewal application, mid approval contact, etc.) and any of the following apply:
The source of the income has changed.
The income is questionable(g) or unclear(g).
The reported income amount has changed by $51 or more.
The previous verification in the case file is more than 59 calendar days old.
For CA, all income is required to be verified before determining eligibility.
Examples of verification that can be used for Unemployment Insurance include, and are not limited to, any of the following:
●Award letter from UI
●Bank deposit statements
●Participant Statement verification when one of the following occur:
Obtaining documented or collateral contact verification may cause harm or undue hardship(g) for the participant.
When all of the following occur:
●Other attempts to obtain the verification have failed. This includes documented and collateral contact verification.
●The participant has requested assistance from FAA.
●The worker has evaluated the request for assistance and cannot obtain the verification from another acceptable source.
●The participant statement is not questionable(g).
AZTECS Keying Procedures
For Unemployment Insurance (UI) benefits, key the UI Unearned Income Code in the INC TYPE field on UNIC.
When qualified railroad employees are receiving UI benefits under the Railroad Unemployment Insurance Act (RUIA), key the RR UI Unearned Income Code in the INC TYPE field on UNIC to budget this income.
Supplemental Unemployment Benefits are in addition to UI payments the participant may be receiving. Key the OT Unearned Income Code in the INC TYPE field on UNIC.
Document the case file(g) thoroughly to support keyed codes, amounts, and frequencies. See the AZTECS Data Entry Guide for instructions on keying the AZTECS income screens.
NOTE Documentation must support determinations of eligibility and benefit level. Document in sufficient detail to ensure that any reviewer can assess whether the determination is reasonable and accurate. Include specific information regarding the reason the income is determined to be normal. (See Budgeting Income Documentation Requirements for additional information.)
Legal Authorities
7 CFR 273.9(b)(2)(ii)
45 CFR 233.20(a)(3)(ii)
last revised 08/26/2024