Unemployment Insurance Benefits - 2. Applying

If you are unemployed, you may be eligible for unemployment benefits in Maryland. The Maryland Department of Labor's (DOL) Division of Unemployment Insurance handles the Unemployment Insurance program. There are four articles in this series with information on eligibility, applying, appealing a denial, and other resources. This article deals with completing the application for benefits.

Step 1: Registering a New Account

Create a new online claimant account at the Maryland Division of Unemployment Insurance BEACON System.

You will establish a username and password, provide other basic information, and set up security questions. 

After creating your account, you will be asked to provide the effective date for your benefit claim.  The effective date is the first day of the calendar week that you file for benefits. 

Step 2:  Completing Claimant Registration

• Provide physical and mailing addresses and demographic information
• Answer initial screening questions about your recent employment such as whether you were employed in Maryland or elsewhere, or whether you were employed as a military member on active duty
• Answer whether you’ve filed an unemployment claim in another state. 

Step 3:  Payment Method and Tax Withholding

• Select how you want to receive unemployment insurance benefits via either direct deposit or paper checks
  • If you select direct deposit, you will need to provide your bank routing and account numbers. You will also need to follow steps to verify you bank account information. This process involves verification of “micro deposits” into your account. The purpose of this micro deposit process is to ensure that your bank account can receive benefit payments by direct deposit. You will receive two deposits of less than $1.00 into your account, usually within 1-2 business days. You will be able to see them in your bank account’s transaction history. Once you have verified the deposit information in BEACON, the deposited amount will be withdrawn from your account.
• Complete the disclosure agreement under the “Disclosure” link
• Unemployment insurance benefits count as taxable income under both federal and state law. Beneficiaries must therefore select from the following withholding options:
  • Withhold both federal and state income tax;
  • Withhold just federal income tax;
  • Withhold just Maryland state income tax; or 
  • Elect no withholdings

Step 4: Work Information

• Enter whether you are union member currently seeking work exclusively through a union hiring hall or business agent.
• Enter your occupation into the text field provided. The automated system will then run a query that will generate job descriptions results. Select the description that best reflects your occupation.
• Enter employment start and end dates for all periods of employment during the past 18 months and the reason for each employment separation.

Step 5:  Eligibility

• You will be asked a series of eligibility questions to determine if you are eligible to receive Unemployment Insurance benefits
• If you are an independent contractor or are self-employed,  you will be asked an additional series of eligibility questions

Step 6: Income Tax Forms

• If you are filing as an independent contractor or as someone who is self-employed, you will be asked a series of questions regarding your tax filings
• You will have the opportunity to upload tax documents to verify income

Step 7:  Determination by Agency

The Department of Labor will make an eligibility determination based on the following:

• Monetary Determination- this determination indicates whether a claimant is eligible based on earnings history. If the claimant is eligible, the monetary determination will establish the claimant’s weekly benefit amount
• Non-monetary Determination - this determination indicates whether a claimant is eligible based on non-monetary factors such as:
  • The reason for the claimant’s separation from employment; and
  • The claimant’s availability for work

Read the Law: Md. Code, Labor & Employment § 8-101, § 8-802, § 8-803, § 8-808, § 8-903

This article series was produced by the Economic & Food Security Committee of the Maryland Attorney General's Covid-19 Access to Justice Taskforce.