What If Your Benefit Year Is Ending
Many people out of work since the beginning of the pandemic are coming up to the end of their 52-week benefit year. Usually, once you reach this point, you have to start a new benefit year and recalculate your payments based on your most recent earnings.
If you’re on PEUC and recalculating your benefits would decrease your aid by $25 or more, you can insteadcontinue to receive the same weekly benefit amount for a new 52-week period. After your PEUC expires, at the latest by Sept. 6, you’ll still have access to regular unemployment insurance for the remainder of your benefit year.
This rule doesn’t apply if you’re on PUA or Extended Benefits, the federally funded program that triggers “on” for select states during times of high unemployment. You’ll be prompted by your state to start a new benefit year, which could change how much you get every week.
One Of My Workers Quit Because He Said He Would Prefer To Receive The Unemployment Compensation Benefits Under The Cares Act Is He Eligible For Unemployment If Not What Can I Do
No, typically that employee would not be eligible for regular unemployment compensation or PUA. Eligibility for regular unemployment compensation varies by state but generally does not include those who voluntarily leave employment. Similarly, to receive PUA, an individual must be ineligible for regular unemployment compensation or extended benefits under state or federal law, or pandemic emergency unemployment compensation, and satisfy one of the eligibility criteria enumerated in the CARES Act, as explained in Unemployment Insurance Program Letter 16-20. There are multiple qualifying circumstances related to COVID-19 that can make an individual eligible for PUA, including if the individual quits his or her job as a direct result of COVID-19. Quitting to access unemployment benefits is not one of them. Individuals who quit their jobs to access higher benefits, and are untruthful in their UI application about their reason for quitting, will be considered to have committed fraud.
If desired, employers can contest unemployment insurance claims through their state unemployment insurance agencys process.
If I Am Eligible For Pandemic Unemployment Assistance Do I Need To First Apply For Unemployment Insurance
States must have a process for determining that Pandemic Unemployment Assistance applicants are ineligible for regular unemployment benefits, which may not include filing a regular claim as a first step. States are not required to take and adjudicate a full claim for regular unemployment insurance benefits to meet this requirement. While states are not prohibited from taking a full claim, to facilitate expedited claims processing the U.S. Department of Labor has discouraged states from doing so. Individuals should apply using the states PUA application process and, in states that have not yet established that process, must wait until it is established.
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Useful Information & Links:
– What was the date of the three federal stimulus checks sent out so far?
– Social Security beneficiaries could soon get a fourth stimulus check from the SSA
Child Tax Credit
– Congress let the Child Tax Credit expansion expire in December, withdrawing payments for millions of families
First introduced in the CARES Act of March 2020, Economic Impact Payments were a direct cash injection into the bank accounts of individual people. As we approach one year since the last round of the payments was approved, we take a look back at the stimulus checks in 2021
Biden on Build Back Better warpath
President Biden is set to meet with corporate executives on Wednesday to discuss his Build Back Better proposal, which has been dead in the water since Joe Manchin killed it at the end of last year.
Biden is expected to discuss with them how the agenda will make the US economy more competitive, increase worker productivity and workforce participation, lower inflation over the long-term, and strengthen business growth.
While he may be able to convince them, it is his own party members that he needs to convince if the bill is to get on to his desk.
The Social Security Administration oversees a number of programmes designed to provide additional financial support for close to 70 million Americans.
Continued Assistance Act Of 2020 Faqs
When is the new round of FPUC payments available?
FPUC payments will begin with the benefit week ending January 2, 2021 and will continue through the benefit week ending March 13, 2021. The first payments will be issued the week of January 3, 2021 when weekly certifications are filed for the benefit week ending January 2, 2021.
Who can receive FPUC?
FPUC is payable to individuals who are otherwise entitled under state or federal law to receive any of the following UC benefits:
- Regular Unemployment Insurance
- Unemployment Compensation for Federal Employees
- Unemployment Compensation for Ex-Servicemembers
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How Do States Handle Unemployment Payments
Most states provide up to 26 weeks of funding, though others, such as Georgia, limited benefits to 12 weeks. On the other hand, Delaware extended benefits for up to 30 weeks.
The weekly benefit amount depends on an applicant’s gross income when employed and ranges between $300 and $600, with some exceptions. Mississippi had paid up to $235, while Massachusetts’ maximum has been $1,220. Pandemic Emergency Unemployment Compensation from the CARES Act added an additional 13 weeks funded by the federal government, but another stimulus bill with unemployment insurance would need to pass in order to extend it further. The latest COVID-19 relief package would add another 11 weeks of PEUC.
Who Qualifies For Another Check
The payments would amount to $1,400 for a single person or $2,800 for a married couple filing jointly. Individuals earning up to $75,000 would get the full payments, as would married couples with incomes up to $150,000. Payments would decline for incomes above those thresholds, phasing out above $80,000 for individuals and $160,000 for married couples.
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Q: What If I’m Sick Or Caring For A Sick Family Member Will They Help Me
You should be eligible for assistance once you certify that you’re ordinarily able and willing to work but can’t because of the virus emergency. That includes if you’ve tested positive or exhibit symptoms of COVID-19, or if you’re caring for a member of your household or family who has been diagnosed with the illness.
You should also be covered if you’re out of work due to an inability to reach the office due to a quarantine imposed as a direct result of the coronavirus crisis.
Delta Variant Curbs Us Job Growth August Saw Slowest Growth In Seven Months
US employment growth likely pulled back in August after gaining nearly 2 million jobs in the past two months as soaring covid-19 cases reduced demand for travel and entertainment, but the pace was probably enough to sustain the economic expansion.
The Labor Departments closely watched employment report on Friday would come as economists have been sharply marking down their estimates for the third quarter gross domestic product.
Reasons cited include the resurgence in infections, driven by the Delta variant of the coronavirus, and relentless shortages of raw materials, which are depressing automobile sales and restocking.
Surging covid-19 cases could also have kept some unemployed people home, frustrating efforts by employers to boost hiring.
The Delta variant is like a sandstorm in an otherwise sunny economy, said Sung Won Sohn, a finance and economics professor at Loyola Marymount University in Los Angeles. If it werent for that, employment in August would have been even higher.
According to a Reuters survey of economists nonfarm payrolls likely increased by 750,000 jobs last month. The economy created 1.881 million jobs in June and July. Should job growth in August meet expectations, that would leave the level of employment about 5 million jobs below its peak in February 2020.
But the forecast is highly uncertain, with estimates ranging from 375,000 to 1.027 million.
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I Am An Independent Contractor Am I Eligible For Unemployment Benefits Under The Cares Act
You may be eligible for unemployment benefits, depending on your personal circumstances and how your state chooses to implement the CARES Act. States are permitted to provide Pandemic Unemployment Assistance to individuals who are self-employed, seeking part-time employment, or who otherwise would not qualify for regular unemployment compensation. To qualify for PUA benefits, you must not be eligible for regular unemployment benefits and be unemployed, partially unemployed, or unable or unavailable to work because of certain health or economic consequences of the COVID-19 pandemic.
The PUA program provides up to 39 weeks of benefits, which are available retroactively starting with weeks of unemployment beginning on or after January 27, 2020, and ending on or before December 31, 2020. The amount of benefits paid out will vary by state and are calculated based on the weekly benefit amounts provided under a states unemployment insurance laws. Under the CARES Act, the WBA may be supplemented by the additional unemployment assistance provided under the Act.
What If You’ve Already Filed Your 2020 Taxes
The Internal Revenue Service hasn’t issued formal guidance on this yet.
If your return has already been processed and you’ve received a refund, you’ll likely have to file an amended tax return in order to claim the $10,200 exemption, according to The Century Foundation.
If you’ve filed your return but it hasn’t been processed by the IRS, it could be delayed. If you were expecting a refund, that could be delayed as well. However, after factoring in the $10,200 tax waiver, your refund may end up being larger than you originally expected as a result.
If you already withheld or paid taxes on your unemployment benefits throughout the year, you may now be entitled to a refund.
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Delay In Extending Unemployment Aid Has Shortchanged Workers $17 Billion In January
The Consolidated Appropriations Act of 2021 enhanced unemployment benefits for 18.6 million Americans relying on jobless pay during the pandemic. The act extended FPUC , PEUC , and PUA through March 2020. Unfortunately, payment of these benefits rolled out slowly in January 2021 as the late enactment of the legislation complicated state implementation. One month after the laws enactment, nearly a quarter of the states have not resumed paying out federal pandemic aid. Moreover, an additional twelve states took three weeks or more to start up the payment of PUA, and fifteen states needed three weeks or more to reup PEUC.
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Unemployment Benefits Under The New Stimulus Package
On Dec. 28, 2020, the Coronavirus Response and Relief Supplemental Appropriations Act was signed into law by then-President Donald Trump after strong bipartisan support in Congress. This bill was the second large stimulus bill passed since the beginning of the COVID-19 pandemic and extends many of the programs enacted in the CARES Act that was signed into law in late March 2020.
The CRRSA Act, which has a total price tag of $900 billion, includes direct support to households, small businesses, educational institutions, nursing homes, and child care facilities. In addition, the bill extends some provisions in the CARES Act, including eviction moratoriums, enhanced SNAP benefits, and the extension of two federal unemployment insurance programs. Additional funding for broadband, vaccines, and clean energy were also included.
State unemployment, PUA, and PEUC have proved to be important funding stopgaps for many Fifth District workers. The following chart shows weekly continued claims as a percent of covered employment since the beginning of the pandemic. This includes continued claims for state UI as well as PUA and PEUC. As of mid-December, this figure remained above 10 percent in most Fifth District geographies.
Changes to Unemployment Benefits in the Fifth District under the New Stimulus Bill
Policy Impact on Fifth District Workers
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How Do I Apply
To receive unemployment insurance benefits, you need to file a claim with the unemployment insurance program in the state where you worked. Depending on the state, claims may be filed in person, by telephone, or online.
- You should contact your state’s unemployment insurance program as soon as possible after becoming unemployed.
- Generally, you should file your claim with the state where you worked. If you worked in a state other than the one where you now live or if you worked in multiple states, the state unemployment insurance agency where you now live can provide information about how to file your claim with other states.
- When you file a claim, you will be asked for certain information, such as addresses and dates of your former employment. To make sure your claim is not delayed, be sure to give complete and correct information.
- Find the contact information for your state’s unemployment office to start your claim.
Am I Eligible For Regular Unemployment Compensation
Each state sets its own unemployment insurance benefits eligibility guidelines, but you usually qualify if you:
- Are unemployed through no fault of your own. In most states, this means you have to have separated from your last job due to a lack of available work.
- Meet work and wage requirements. You must meet your states requirements for wages earned or time worked during an established period of time referred to as a “base period.”
- Meet any additional state requirements. Find details of your own states program.
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Tradeoffs: $300 Per Week Boost And $10200 Tax Waiver
The package differs from Biden’s original proposal in a few key ways: The original provided a $400 weekly UI boost and extended aid until the end of September. However, the value of federally enhanced UI, among other stimulus provisions, was changed in the last week to appease moderate Democrat Senator Joe Manchin of West Virginia, who threatened not to support the bill.
At face value, “$300 instead of $400 is worse,” says Heidi Shierholz, the director of policy at the Economic Policy Institute. A $300 weekly boost on top of state UI replaces 74% of the average worker’s lost income, according to a CNBC analysis, while a $400 weekly supplement bumps it up to 85% wage recovery. The CARES Act’s $600 weekly enhancement aimed to provide 100% wage replacement for the average worker.
But Americans may end up getting similar amounts of jobless aid with the addition of tax relief on UI benefits, Shierholz tells CNBC Make It, including the $600 weekly supplements through July and $300 weekly Lost Wages Assistance pay in late summer.
“Those largely offset each other,” Shierholz says. “The tax relief is huge because you have all these families of unemployed workers who received benefits last year who are now scraping by, but may or not be in a job right now and are getting hit with massive tax bills.”
With that said, some have noted the American Rescue Plan could cause a headache for taxpayers.
Unemployment Compensation: Are Unemployment Benefits Taxable
Our guide to one of the most common tax questions
It’s tax filing season in the USA and, as people across the country start filling in their forms, one of the common questions concerns unemployment benefits. Many aren’t sure whether unemployment compensation is taxable and, if so, how this works.
Here, we’ll break down all you need to know in this guide to how and when to pay taxes on unemployment compensation.
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My Regular Unemployment Compensation Benefits Do Not Provide Adequate Support Given The Unprecedented Economic Challenges Caused By The Covid
Yes, depending on how your state chooses to implement the CARES Act. The new law creates the Federal Pandemic Unemployment Compensation program , which provides an additional $600 per week to individuals who are collecting regular UC and Unemployment Compensation for Ex-Servicemembers , PEUC, PUA, Extended Benefits , Short Time Compensation , Trade Readjustment Allowances , Disaster Unemployment Assistance , and payments under the Self Employment Assistance program). This benefit is available for weeks of unemployment beginning after the date on which your state entered into an agreement with the U.S. Department of Labor and ending with weeks of unemployment ending on or before July 31, 2020.
Update: No Biden Executive Order States Have Funding To Expand Unemployment Benefits
The Biden Administration has confirmed that they wont push to extend federally funded unemployment benefits past the September 6th expiration date via Executive Order or Congressional action. Instead they are encouraging states with high unemployment to use some of the existing $350 billion in ARPA stimulus allocated for State and Local Fiscal Recovery initiatives to fund enhanced unemployment benefits.
As discussed in this video, there is wide latitude for usage of these funds by state governors and departments, which includes funding emergency unemployment benefits. States who ended participation early in federal unemployment programs could also use these funds to extend/expand benefits if they choose to do so.
Some claimants may be eligible for State Extended Benefits , but after September 4th all claimants must have a regular UI claim to continue receiving benefits. See more in these state specific unemployment pages.
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Unemployment Benefits Will Run Out Quickly
Trumps order looks to leverage money in Homeland Securitys Disaster Relief Fund, which currently has $70 billion available. His action states that the increased benefits will be available for eligible claimants until the balance of the DRF reaches $25 billion or for weeks of unemployment ending not later than December 6, 2020, whichever occurs first, at which time the lost wages assistance program shall terminate.
According to expert estimates, the money in the DRF may only last four to five weeks before expiring, a far cry from the December 6, 2020 date in Trumps executive order. At that time, the White House would probably need to look to Congress and legislative action to continue benefits.
In other words, at best, Trumps order is simply kicking the can a few weeks down the road.