State Unemployment Insurance Law and Legal Definition

State Unemployment Insurance (UI) is an insurance program for unemployed citizens of the U.S. Under this program, weekly insurance payments are made to individuals who have lost their jobs for reasons beyond their control. Such determination is done under the state laws. This program is supported by employers who pay taxes on wages paid to employees. These payments provide temporary financial assistance to unemployed individuals. Such programs are administered by each state in accordance with Federal laws. The amount being paid varies according to the State requirements for wages earned or time worked during an established period of time referred to as a "base period". Most states pay benefits up to 26 weeks. These payments are subject to Federal income taxes and must be reported on Federal income tax return.