Filing unemployment soon since Accenture decided to lay some of its most loyal employees off. Does anyone know if the federal tax is only 10% and state tax is only 2% for unemployment benefits? If I choose to withhold now, will there be any other taxes I need to look out for when receiving this money? Thanks.

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Keep in mind that taxes are based off your earnings for the year. If you’re between tax brackets you could be under withholding. E.g. You get unemployment for 4 months, new job pushes you from $39K to $70K total earnings.

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Unemployment is taxed at your regular income tax rates, meaning it depends on how much you’ll get in benefits, which you should be able to project out. You’d then see what you made previously to figure out what bracket you’re in for 2020. You’ll get a 1099-G next year reflecting the amount you received. It’s sort of up to you on it honestly, you can withhold zero for now if you wanted and make up for it later if you are a good budgeting, or if you assume you will be on it for a limited amount of time.

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Loyal employees??? <loud belly laughter> WHY???

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Depends on your state. Tx doesn’t have its own income tax.

Accenture is a sweat shop. Loyalty is absent

It’s based on your total income.

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