Other Factors That Impact Eligibility
A few other requirements must be met in order to be eligible for unemployment benefits.
- An individual must be physically able to work.
- If sickness or injury is prohibiting work, he or she should apply for Disability Insurance.
File Quarterly Ui Tax Reports And Payments
In California, UI tax returns and payments are combined with other payroll tax reports and payments. The returns and payments generally are due a month after the close of each calendar quarter. In other words, they are due by the following dates:
- 1st Quarter returns and payments due on or before April 30
- 2nd Quarter returns and payments due on or before July 31
- 3rd Quarter returns and payments due on or before October 31, and
- 4th Quarter returns and payments due on or before January 31.
Any time a due date falls on a Saturday, Sunday, or legal holiday, the due date is extended to the next business day.
All tax payments must be submitted with a completed Payroll Tax Deposit unless payments are made by Electronic Funds Transfer or using e-Services for Business. Newly registered employers are sent a DE 88 booklet containing preprinted coupons about six weeks after registering with the EDD. Newly registered employers can enroll and use e-Services for Business immediately to make deposits.
A Guide To Unemployment Benefits In California During Covid
California’s Unemployment Insurance program pays benefits to individuals who have become unemployed or partially unemployed and who meet the program’s eligibility requirements. The eligibility requirements include that the individual filing for UI benefits must have earned enough wages during the base period, be unemployed through no fault of their own, be physically able to work, be available for work, be ready and willing to accept work immediately, and be actively looking for work. The base period is a 12-month term, or four quarters, that the Employment Development Department uses to determine if the individual earned enough wages to establish a UI claim. The EDD also uses the base period to determine the individual’s weekly benefit amount. For partial UI benefits, the EDD will first determine if the individual is eligible to receive benefits, and if so, the EDD will then calculate the individual’s reduced weekly benefit amount. More information can be found here.
Due to COVID-19, Governor Gavin Newsom issued Executive Order N-25-20, which states that the EDD may use its discretion to waive the one-week waiting period for UI applicants who are unemployed as a result of COVID-19, and who are otherwise eligible for UI benefits. Additionally, the EDD is not requiring workers who are working reduced hours or completely laid off to be actively seeking work.
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Spotlight Changes To Unemployment Benefits Under The Consolidated Appropriations Act
- An additional $300 per week in Federal Pandemic Unemployment Compensation payments will be added to all unemployment benefits through September 6, 2021 %E2%80%94An%20additional%20%24600%20per,25th%20for%20most%20people.” rel=”nofollow”> FPUC)
- Regular state unemployment benefits will be extended for up to an additional 29 weeks through September 6, 2021, beyond the 50 weeks of benefits provided for by previous laws, through Pandemic Emergency Unemployment compensation %E2%80%94An%20additional%20%24600%20per,25th%20for%20most%20people.” rel=”nofollow”> PEUC)
- Pandemic Unemployment Assistance for categories of workers excluded from regular benefits %E2%80%94An%20additional%20%24600%20per,25th%20for%20most%20people.” rel=”nofollow”> PUA)
- Six months of free COBRA health insurance will be available to the unemployed
- Workers who have at least $5,000 in annual self-employment income but were previously ineligible for regular state unemployment benefits will continue to receive up to $100 per week
Calculating A Suta Tax Example
Lets try an example. Imagine you own a California business thats been operating for 25 years.
Employers in California are subject to a SUTA rate between 1.5% and 6.2%, and new non-construction businesses pay 3.4%. The states SUTA wage base is $7,000 per employee.
Since your business has no history of laying off employees, your SUTA tax rate is 3%. You have employees with the following annual earnings:
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How Do I Get Paid Edd
Receive Your Benefit Payments It takes at least three weeks to process a claim for unemployment benefits and issue payment to most eligible workers. When your first benefit payment is available, you will receive a debit card in the mail. Once you activate the card you can track, use, and transfer your benefit payments.
First It Helps To Understand How Unemployment Insurance Is Financed
Unemployment is almost entirely funded by employers. Only three statesAlaska, New Jersey and Pennsylvaniaassess unemployment taxes on employees, and its a small portion of the overall cost.
Unemployment is funded, and taxed, at both the federal and state level:
- The Federal Unemployment Tax Act tax is imposed at a flat rate on the first $7,000 paid to each employee. The current FUTA tax rate is 6%, but most states receive a 5.4% credit reducing that to 0.6%. There is no action an employer can take to affect this rate. Some of this federal money is used for loans to states that dont have enough in their UI trust funds to pay claims. If the loans are not repaid, the federal government raises that states employer tax rate.
- The State Unemployment Tax Act tax is much more complex. Employers pay a certain tax rate on the taxable earnings of employees. In most states, that ranges from the first $10,000 to $15,000 an employee earns in a calendar year.
Heres where it gets tricky. Each state has its own finance method and its own calculation to determine the tax rate an employer pays. You can read about that here. For the purposes of this article, know that the tax is based on the employers taxable payroll, the amount the employer has paid into the UI system, and unemployment claims against the employers account .
This is called an experience rating, and it can go up or down over time depending on the employers payroll and history with unemployment claims.
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Unemployment Compensation Programs Under The Cares Act
Under the CARES Act, qualified workers and individuals who would otherwise receive UI benefits under state law may be eligible for an extra $600 weekly payment if they are totally unemployed, partially unemployed, or unable to work due to the COVID-19 pandemic under the Pandemic Unemployment Compensation and the Pandemic Unemployment Assistance programs. The $600 weekly benefit amount may be available to individuals collecting regular unemployment compensation as well as individuals who are receiving assistance under Work Sharing. The supplemental $600 payment may be provided for up to 16 weeks.
Due to COVID-19 and the unprecedented demand for UI benefits, the CARES Act provides a 13-week extension of benefits paid for by the federal government when eligible individuals exhaust their regular UI claim under the Pandemic Emergency Unemployment Compensation program. For further guidance, please contact your Fisher Phillips attorney or the authors of the blog post.
How Have Unemployment Benefits Changed
The coronavirus pandemic and unprecedented public health measures implemented in most states have had a massive impact on the United States economy. Record numbers of Americans have filed for unemployment benefits since the pandemic began. If you are unemployed, you will likely want to know what benefits and support are available to you until you find your next job.
On March 11, 2021, the American Rescue Plan Act was signed into law, extending sections of previous pandemic-related plans Act and the Consolidated Appropriations Act of 2021) and adding some new provisions. The Act provides additional benefits for workers affected by the pandemic.
Beginning in early May 2021, some states announced that they would opt out of pandemic-related unemployment insurance programs early.
Each state has its own unemployment insurance system and will be responsible for administering both state benefits and supplemental federal benefits. We are here to help you understand how the Act affects the benefits you can claim.
How California Calculates Unemployment Benefit Amounts
Your earnings during what’s known as the “base period” will determine both your eligibility for unemployment benefits and the weekly amount you’ll receive. The base period is usually the earliest four of the five full calendar quarters that come before you filed your claim.
The EDD will compute your weekly benefit amount based on your total wages during the quarter in your base period when you earned the most. For all but very low-wage workers, the weekly benefit amount is arrive at by dividing those total wages by 26up to a maximum of $450 per week. For instance, if you earned a total of $6,000 during the highest quarter in your base period, you would receive $231 per week in benefits. If your highest-quarter wages were more than $11,674, you would receive the maximum $450 .
You can use the EDD’s unemployment insurance calculator to see figure your weekly benefit amount.
How Are Partial Weekly Benefits Calculated
First, calculate the individual’s weekly benefit amount. The weekly benefit amount is the amount that the individual would receive if they were totally unemployed. The individual’s weekly benefit amount is determined by taking the amount of wages that the individual earned in their highest base period quarter and comparing it to the EDD’s Unemployment Insurance Benefit Table here. In this scenario, the individual is earning $6,760 in their highest base period quarter. Using the EDD’s Unemployment Insurance Benefit Table, the individual’s weekly benefit amount is $260, which is the amount they would receive if totally unemployed.
Second, if the individual’s hours are reduced from 40 hours per week to 24 hours per week, determine if the individual is unemployed and if they are eligible for partial UI benefits. To do so, look at whether the individual is working less than full time and whether the wages payable to them with respect to the week, when reduced by $25 or $25% of the wages payable, whichever is greater, do not equal or exceed their weekly benefit amount. Assume the individual’s weekly benefit amount is $260, as calculated above.
In this scenario, the individual is eligible for partial UI benefits:
This individual’s reduced weekly benefit amount is calculated as follows:
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Register With The Employment Development Department
As a California employer subject to UI tax, your small business must establish a California payroll tax account with the California Employment Development Department . Be aware that you don’t need to establish an account until you’ve paid over $100 in wages in a calendar quarter.
You set up your account by registering your business with the EDD either online or on paper. To register online, use the EDD’s e-Services for Business. If you register online you should be assigned an account number within 24 hours. To register on paper, most employers should use Form DE 1, Registration Form for Commercial Employers. You can download blank forms from the Payroll Taxes Forms and Publications section of the EDD website. You can submit Form DE 1 by regular mail or by fax. If you register on paper, you should be assigned an account number within 10 days. There is no fee to register your business with the EDD.
Note: To establish your California UI tax account, you’ll need a federal employer identification number . You can apply for an EIN at IRS.gov. Generally, if you apply online, you will receive your EIN immediately.
Alternate Base Year Claims
You could be eligible for an alternate base year claim if you do not have the required 680 hours of work in your regular base year.
The base year for an alternate base year claim is the last four completed calendar quarters before the week in which you file your claim. You must have 680 hours of work in the alternate base year and still meet all of the other eligibility requirements.
If you file your claim here:
Your base year is the blue-shaded area.
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What Does Pending Mean On Edd Payment
On a call with the EDD, they confirmed that in most cases, a pending notice means that the department needs to do something on their end to get you paid. Unfortunately, there are a lot of people waiting on EDD to act right now. Waiting on EDD to approve identity verification. Stop payment alerts. End of Benefit Year.16 avr. 2021
F Reopening An Unemployment Insurance Claim In California
1. What happens if you stop certifying for unemployment benefits?
If you stop certifying for continued benefits, even for one week, your Unemployment Insurance claim becomes inactive. You must reopen your claim to request benefit payments.
You can reopen your claim if it was filed within the last 52 weeks and you have not exhausted your benefits. If your benefit year has ended, you must file a new claim. Waiting to reopen or file a new claim can delay benefit payments.
2. How can you reopen an unemployment claim in California?
Via online: To reopen an employment claim online, UI Online is the fastest and most convenient way to reopen your claim. You can reopen your claim 24 hours a day, 7 days a week following the steps below:
Step 1: Access your UI Online account
Log in to Benefit Programs Online and select UI Online.
Step 2: Select Reopen Your Claim
Select “Reopen Your Claim” from the Notifications section of your UI Online home page. This link will only appear if you need to reopen your claim.
Step 3: Answer all questions
You will be asked a series of questions to help the EDD determine your eligibility to receive UI benefits. If additional information is needed, a phone interview will be scheduled.
Step 4: Review and submit your answers
Step 5: Check your status
- English 1-800-300-5616
- Vietnamese 1-800-547-2058
- Mandarin 1-866-303-0706
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Expanded Unemployment Benefits Under The Cares Act
The Coronavirus Aid, Relief, and Economic Security Act included a section that expanded unemployment benefits by an additional $600 per week on top of the benefit offered by states. This provision is being rolled out on a state by state basis, however, the benefit is retroactive to April 5, 2020.
The additional $600 weekly benefit brings the state and federal unemployment benefits up to an average of the median weekly wage in the United States. However, because the expanded benefits are being offered to everyone on
Read More About Business
You may continue to get your unemployment benefit, but some of you out there are probably wanting to get back to work. Others may want to use this opportunity to start going down their own career path.
Read more of our business articles to get some more tips on what is right for you!
Tech Behind It provides latest news updates on the topics like Technology, Business, Entertainment, Marketing, Automotive, Education, Health, Travel, Gaming, etc around the world. Read the articles and stay Updated.
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Why These Federal Benefits Were Created And Who’s Being Left Out According To Advocates
These now-expired pandemic unemployment benefits were created as temporary emergency payments and extensions, and some of them were intended to bridge gaps for people who dont qualify for regular unemployment, like gig workers and the self-employed.
In the lead-up to their expiration, some advocates pointed out that the absence of preexisting unemployment support nets for these workers highlights glaring holes in the system that still need filling.
“‘Why is it OK for those folks to be excluded from the program when it’s not a pandemic?’ is a question we need to ask ourselves,” said Rebecca Dixon, executive director of the National Employment Law Project.
“And if we can figure out how to make it work during a pandemic to cover them, we need to be covering them all the time.”
Other Unemployment Insurance Provisions Under The Cares Act:
The CARES Act improved unemployment benefits in the following ways:
- It provides an additional $600 per week in benefits and payments through July 31, 2020.
- It adds an additional 13 weeks of benefits through December 31, 2020. Most states currently offer 26 weeks of unemployment benefits .
- it expands benefits for part-time, seasonal, self-employed, and contract workers .
- Offers to reimburse the cost for states that waive the one-week waiting period before paying benefits.
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What Other Help Is Available
The hopeful news is that California is adding jobs and increasing its demand for goods and services, although the states unemployment rate remains significantly higher than the national average and hasnt fallen much since May. The job losses have been worse for people of color, especially Black Californians, according to the California Budget and Policy Center. The Delta variant of the coronavirus also has been a drag on the recovery lately.
In the meantime, the federal government has increased the benefit levels in a number of programs for people in need, and the feds and California have expanded eligibility for several forms of aid and streamlined the process of obtaining help. A good starting point is BenefitsCal, a site where you can sign up for food, health, unemployment and welfare benefits.
Food: CalFresh, the states food aid program, offers 15% more in benefits through Sept. 30 to low-income households. In addition, work requirements for college students have been eased dramatically , opening the program to far more young California adults. To apply, go to GetCalFresh.org.
The Caldor fire has destroyed more than 600 homes and threatens more than 32,000 structures as it moves toward the Nevada state line.