Monday, December 5, 2022

What Is Supplemental Unemployment Benefits

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Do I Have To Do Anything To Receive The $300 Supplement

Supplemental federal unemployment benefits on the way

No action is required to secure the weekly bonus. It should be triggered automatically. Much like the $600 supplement, the $300 supplement will be paid after the underlying weekly benefit and come as a separate deposit.

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There is no minimum benefit requirement, as there was for the Lost Wages Assistance program, which offered $400 in weekly supplemental payments for six weeks in August and September 2020.

More Reader’s Watchdog: Kentucky unemployment filers blindsided by denial of $400 supplement

Can An Employer Lay Off Its Employees If The Business Needs To Be Shut Down Due To Covid

Under the Employment Standards Act, 2000 , employers can temporarily layoff employees for a period of up to 13 weeks . However, although temporary layoffs are contemplated in the ESA, an employer is not permitted to lay off an employee unless the contract of employment between the parties explicitly or implicitly gives the employer the authority to do so.

If an employer is struggling to operate its business due to COVID-19 , an employer may consider asking its employees to agree to a temporary layoff. An employees agreement must be obtained before this option will be available to employers.

It is important to note that if an employee does not agree to a temporary layoff, the employer may have to consider terminating the employees employment and providing them with their entitlements on dismissal. In addition, employers should be aware that if the layoff extends beyond the time limits specified by the ESA, the employee will be deemed to have been dismissed as of the first day of the layoff.

UPDATE: Employers who must reduce employee hours may wish to consider taking advantage of the EI Work Sharing Program, described in detail above.

What Are Supplemental Unemployment Benefits

Reductions in force are unavoidable in economic downturns, but are traditional severance packages the way to go? They can be a big hit to your companys cash flow and are subject to payroll taxes. The tax-friendlier option, Supplement Unemployment Benefits plans , can spread out costs and deliver the same value for the employee, too.

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What Are The New Documentation Requirements For Pua Claims

To weed out fraud, the latest relief bill requires additional documentation from PUA recipients.

Filers may be asked to show proof of employment, which can be proved with paycheck stubs, earnings and leave statements that show an employers name and address and W-2 forms, according to the state.

Those asked for proof of a planned start of employment can provide a letter that offers employment or submit statements or affidavits by individuals that verify an offer of employment. Other documents may be accepted.

Those asked to show proof of self-employment can submit state or federal employer identification numbers, business licenses, tax returns, business receipts or signed affidavits from people who verify the individuals self-employment. Other documents may be accepted.

Kentucky’s Labor Cabinet says proof of the planned commencement of self-employment can be shown with business licenses, state or federal employer identification numbers, written business plans or a lease agreement, though other documents may be accepted.

The state warns that those who dont provide requested documentation within the specified time frame will be deemed ineligible for PUA benefits and could be subject to overpayment.

Can An Employer Institute A Travel Policy Which Prevents Employees From Traveling Outside Of Canada

Supplemental Unemployment is the Best Thing about the ...

As noted above, the Government of Canada is currently recommending that Canadians avoid all non-essential travel outside of Canada to reduce the spread of COVID-19, and are recommending that anyone who does travel self-isolates for 14 days upon their return. An employer can develop a policy which strongly recommends that employees avoid traveling at this time, and which imposes a positive duty on employees to report any travel to the employer.

The policy can also make it clear to employees that, if they choose to travel, they will be required to remain at home for 14 days after they return and, if remote work is not available, that this will be an unpaid leave.

UPDATE: On March 16, Canada announced it was closing its borders and denying entry to anyone who is not a Canadian citizen or permanent resident, except for immediate family members of Canadian citizens, airplane crew members, diplomats, and US citizens.

On March 18, the United States and Canada entered into a joint agreement to suspend non-essential travel between the two countries. Trade will not be affected.

Starting March 18, most international flights to Canada will be directed through four airports. The Canadian government continued to urge Canadians to return home while they still can.

UPDATE : On March 25, 2020, the Government of Canada instituted an Emergency Order under the Quarantine Act that requires all individuals returning to Canada to self-isolate for a period of 14 days.

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Does An Employer Have To Pay An Employee Who Is Unable To Work Due To A Positive Diagnosis Of Covid

No. Employees who are in quarantine or who have been advised by a medical or health official to self-isolate are entitled to take an unpaid leave of absence from the workplace. They can use paid sick time or vacation time to cover this period , and employers should also encourage employees to apply for Employment Insurance sick leave benefits. Many employers are offering paid sick days to employees to cover this time, but this is not legally required.

UPDATE: The Ontario governments amendments to the Employment Standards Act, 2000 confirm that employees are entitled to unpaid leave if they are unable to work due to COVID-19.

UPDATE : Individuals who are unable to work due to COVID-19 may be eligible for the Canada Emergency Response Benefit, as described in detail below, which is retroactive to March 15, 2020.

Supreme Court Ruling On Severance Payments And Fica

  • The broad definition of “wages” for FICA purposes.
  • That severance payments to terminated employees are clearly remuneration for employment under this definition.

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Basic Requirements That Must Be Met

SUB plans are registered by Service Canada through the SUB program in Bathurst, New Brunswick. Plans must be registered before their effective date. Officers from the SUB program assess employers’ SUB plans against the requirements set out in subsection 37 of the EI Regulations. SUB program Officers also help employers develop SUB plans that meet the requirements of the EI Regulations.

An acceptable plan is one that:

  • identifies the group of employees covered
  • covers a period of unemployment caused by 1 or a combination of the following:
  • temporary stoppage of work
  • training
  • illness, injury or quarantine
  • requires employees to apply for and be in receipt of EI benefits in order to receive payments under the plan
  • requires that the combined weekly payments from the plan and the portion of the EI weekly benefit rate does not exceed 95% of the employees normal weekly earnings
  • requires it be entirely financed by the employer
  • requires that on termination, all remaining assets of the plan will be reverted to the employer or be used for payments under the plan or for its administrative costs
  • requires that written notice of any change to the plan be given to Service Canada within 30 days after the effective date of the change
  • provides that the employees have no vested right to payments under the plan except during a period of unemployment specified in the plan
  • Employment Insurance Telephone Information Service

    Supplemental unemployment payments

    The Employment Insurance Telephone Information Service is an automated telephone service that provides general and more specific information on the EI program. It is available 24 hours a day, 7 days a week.

    When you call, you can use self-service options to:

    • submit electronic reports
    • get information on benefits, including your specific claim

    To get more information or make changes to your claim, you may speak with an EI representative during business hours.

    For information about Canada Emergency Response Benefit claims filed with Service Canada, please also contact this telephone service. Please note that the period to apply for the Canada Emergency Response Benefit is now closed.

    To access information about your claim, you will need your SIN and access code, which you will find on the benefit statement that is mailed to you after you apply for benefits.

    Toll-Free: 1-800-206-7218

    The hours of operation are 8:30 am to 4:30 pm local time, Monday to Friday.

    Average wait times

    Our service standard is to answer your call within 10 minutes. Please see below for our average wait times for the week of December 13, 2021.

    This is the average length of time that callers wait in queue before speaking to an agent.

    Days

    Protecting your information

    You now need to show valid ID and answer verification questions at Service Canada Centres to access your file.

    Examples of accepted ID include:

  • or 2 of the following:
  • a birth certificate
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    Whatis The Supplemental Unemployment Benefit

    The Supplemental Unemployment Benefit is a Government of Canada program made pursuant to Employment Insurance Regulation , section 37 in which an employer is allowed to top up an employees EI earnings when they are unemployed due to a temporary stoppage of work, illness or quarantine without affecting an employees employment insurance earnings.

    In light of the novel coronavirus, COVID-19, the Supplemental Unemployment Benefit is a program we would recommend to employers seeking to make their employees whole while they are laid off or on a sick leave, quarantine or Infectious Disease Emergency Leave.

    In addition, although this is untested, in the unique circumstance posed by the coronavirus, there is chance that employers who top up employees on EI with the Supplemental Unemployment Benefit equaling around 80-95% of normal pay may be shielded from constructive dismissal claims from laid off employees. After all, the hallmark of a classic constructive dismissal case is a stoppage of earnings. Accordingly, where a laid off employee, under the Employer Supplemental Unemployment Benefit essentially only loses 20-15% of his or her earnings, he or she may not be able to advance a successful constructive dismissal claim. However, earnings under this program resulting in less than around 80% of normal earnings would likely still trigger a constructive dismissal. Nevertheless, none of this is legal advice, so us for more information.

    Requirements For Sub Trusts To Be Tax

    • The trust is:
    • part of a written plan and
    • evidenced by an executed written document.
  • The related SUB plan is established and maintained by an employer exclusively to provide supplemental unemployment compensation benefits.
  • The SUB plan requires that principal and income are not used for or diverted to purposes other than providing SUB benefits .
  • Benefits are determined using objective standards and not exclusively in the trustees’ discretion.
  • The SUB plan’s eligibility requirements and benefit provisions do not discriminate in favor of officers, shareholders, supervisory employees, or highly compensated employees as defined under Code Section 414 ).
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    Has Kentucky Started Issuing The $300 Supplement To Weekly Benefits

    Yes, as of mid-January, the state has started issuing this supplemental benefit. Those receiving weekly benefits through PUA, PEUC, regular state unemployment insurance and other benefit programs should receive an additional $300 each week.

    This bonus benefit, provided through the Federal Pandemic Unemployment Compensation program, was a product of the first relief package passed by Congress in March 2020. Originally set at $600, the benefit expired in July 2020.

    The new relief bill provides up to 11 weeks of the $300 supplement, starting with the week ending Jan. 2 and ending with the week ending March 13.

    How Long Do Supplemental Unemployment Benefits Last

    What is Supplemental Unemployment Benefits (SUB)?

    Unemployment benefits usually last for 26 weeks. However, each state determines the length of unemployment benefits. Due to the CARES Act, many benefits have been extended to 39 weeks. The length of time is also subject to change depending on other measures Congress takes in the coming months. Individual states have to decide whether to extend the benefits.

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    My Organization Doesnt Have Any Layoffs Planned Why Should I Do This

    Its important to begin the SUB Plan implementation process before layoffs occur. After a reduction in force has been announced, its often too late to change your severance policy. A neutral time is the best time to evaluate the policy and consider implementing a SUB plan. This ensures the best possible outcome for both the employee and employer when an RIF does happen.

    Assembly Aims To Make Wisconsin A ‘second Amendment Sanctuary State’

    The Assembly also voted 61-36 in favor of a bill that would prevent local and state law enforcement from confiscating legally owned guns and ammunition.

    Sen. Mary Felzkowski, R-Irma, and Rep. Treig Pronschinske, R-Mondovi, introduced the bill in May after the Biden administration announced six initial actions on gun control, following mass shootings in Boulder, Colorado, and Atlanta.

    On Wednesday, Pronschinske compared gun control legislation to “death by 1,000 cuts.” “Elitists” are trying to take away the rights of Americans, he said.

    According to the bills authors, guns manufactured and legally owned in Wisconsin shouldnt be subject to the Constitutions interstate commerce clause, which grants Congress authority over multi-state transactions. Pronschinske argued the bill would protect Wisconsin gun owners should other states or the federal government instate restrictive laws.

    The legislation would require guns manufactured in the state to be marked with a “Made in Wisconsin” stamp. It would also apply to firearms made in Wisconsin but fitted with accessories from other states.

    Nationally, opponents of Second Amendment sanctuaries argue they’re symbolic at best and dangerous at worst.

    The bill easily passed the Assembly after a short discussion. It’s yet to see a Senate hearing.

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    Irs Ruling Prohibits Lump

    CSX Corp.

    • SUB payments are excluded from wages for FICA and FUTA purposes only if they are actually linked to the receipt of state unemployment compensation, meaning that:
    • the plan’s design and purpose are to supplement the receipt of state unemployment compensation and
    • the payments are consistent with this purpose.
  • Lump-sum payments are not linked to state unemployment compensation .
  • Plan Design Under 1990 Ruling

    • Designed to supplement the receipt of state unemployment compensation.
    • Not attributable to an employee rendering any particular services.
    • Not payable in lump-sum form.
    • Had insufficient wage credits or failed to satisfy the required waiting period.
    • Exhausted the duration of unemployment benefits.
    • Structured to supplement the receipt of state unemployment compensation.
    • Not wages for FICA and FUTA purposes.

    How Many People Lost Their Jobless Benefits

    Unemployed workers prepare as supplemental pandemic unemployment benefits come to an end

    Its estimated around 7.5 million people have been cut off from aid, and more than three million people who get the weekly $300 bonus to their state unemployment benefits have been affected. That brings the total number of people affected by the Sept. 6 expiration date to almost 11 million.

    In addition to that, August was an underwhelming month for job growth, with the economy adding just 235,000 positions, the Labor Department reported Friday. Economists polled by Bloomberg predicted 725,000 new hires for August, while a separate Reuters survey had economists predicting 728,000. Still, the unemployment rate is on a steady if slow decline, dropping from 5.4% to 5.2%.

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    Service Changes Due To Covid

    We urge you not to visit Service Canada Centres unless absolutely necessary.

    Ask us to help you with the following programs by using eServiceCanada:

    • Employment Insurance
    • Canada Pension Plan , Old Age Security , Guaranteed Income Supplement benefits
    • Social Insurance Numbers
    • immediate request for a Passport Service
    • Veterans Affairs Canada Services
    • view my records of employment
    • view EI publications
    • obtain a copy of your T4E
    • update your mailing address and telephone number

    Kentucky Unemployment Benefits: What To Know About Newly Extended Federal Programs

    Ten months into the coronavirus pandemic in Kentucky, tens of thousands of Kentuckians continue to rely on unemployment benefits.

    Recent federal data shows in early January there were more than 65,000 Kentuckians getting unemployment benefits or who had just submitted a new claim. And that number may grow as people who lost benefits last month rejoin the rolls.

    Acting at the eleventh hour late last month, the U.S. Congress passed the Continued Assistance Act. This latest COVID-19 relief bill extended key federal programs that greatly expanded unemployment benefit eligibility but were set to expire at year’s end.

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    Kentucky’s unemployment office has announced it is ready to carry out many of the provisions of the relief package.

    Below are some common questions about the bill as well as other unemployment-related developments in Kentucky, including Gov. Andy Beshear’s one-time relief payments.

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    Sub Plan Adoption Challenges

    • If the SUB plan must be submitted to the state or the IRS for pre-approval, this could considerably delay implementation.
    • The SUB plan must be carefully designed to ensure the employer and the employee get the most out of the program. This step requires strong knowledge of how SUB plans work and the related laws and tax implications.
    • SUB plans are typically more complicated to administer than traditional severance plans, mainly because of their association with state unemployment benefits.
    • SUB plan payments are subject to federal income tax withholding and must therefore comply with IRS rules for nonqualified deferred compensation unless an exception applies. To meet this exception, employers often design their SUB plan as a separation pay plan.
    • SUB plans are usually considered welfare plans under the Employee Retirement Income Security Act of 1974. This means the plan must adhere to applicable ERISA laws, including developing a written plan document.

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