Wondering if you qualify for unemployment assistance in response to coronavirus? You like many have people in your life who have been furloughed or been let go from their work and are scrambling for any source of equilibrium in their finances. The CARES Act with which we have all come to know includes provisions that extend beyond just cash relief, including supplement unemployment insurance and extend unemployment insurance benefits to self-employed individuals. Let’s dive in more into how you can be affected by unemployment assistance and how it can help you.
Covered Individuals (Act Sec 2102(a)(3)) include those that are not eligible for regular compensation or extended benefits under State or Federal law or pandemic emergency unemployment compensation, and provides self-certification that the individual is able and available for work except for the fact that: 1) the individual has been diagnosed with COVID–19 or is experiencing symptoms of COVID–19 and seeking a medical diagnosis 2) a member of the individual’s household has been diagnosed with COVID–19 3) the individual is providing care for a family member or a member of the individual’s household who has been diagnosed with COVID–19 4) a child or other person in the household for which the individual has primary caregiving responsibility (dependent) is unable to attend school or another facility that is closed as a direct result of the COVID-19 public health emergency and such school or facility care is required for the individual to have access to be able to work 5) the individual is unable to reach their place of employment because of a quarantine imposed as a direct result of the COVID-19 public health emergency 6) the individual is unable to reach the place of employment because the individual has been advised by a health care provider to self quarantine due to concerns related to COVID–19 7) the individual was scheduled to commence employment and does not have a job or is unable to reach the job as a direct result of the COVID-19 public health emergency 8) the individual has become the breadwinner or major support for a household because the head of the household has died as a direct result of COVID–19. 9) the individual has to quit his or her job as a direct result of COVID–19. 10) the individual’s place of employment is closed as a direct result of the COVID–19 public health emergency or 11) the individual meets any additional criteria established by the Secretary of Labor for unemployment assistance under this section.
Self-Employed Individual (Sec 2102(a)(3)(A)(ii)(II)) includes self-employed individuals who are seeking part-time employment, do not have sufficient work history, or otherwise wouldn’t qualify for regular or extended unemployment benefits. Those Americans who are not covered as of this writing include: an individual who has the ability to telework with pay, or an individual who is receiving paid sick leave or other paid leave benefits regardless of whether the individual meets any of the qualifications described in 1 through 11 above.
If you qualify, these benefits will be available to you through the rest of 2020 (December 31). By definition these benefits provide $600 per week on top of whatever state benefits for which the individual qualifies. 39 weeks is the maximum period anyone is eligible to be a part of this unemployment program. It is optional for states to continue to pay state benefits past the established period for the state (Act Sec 2107), so we will have to see what direction state legislators will look to go. Disregard a typical 1 week waiting period, as it has been waived for this program. The benefits are applied for and paid through each state’s employment development department. There is no provision in the CARES Act addressing the taxation of the unemployment benefits received because of the COVID-19 pandemic. They continue to be taxable for federal purposes.
Still wondering if you qualify for unemployment assistance in response to coronavirus? As explained, the CARES Act includes provisions that extend beyond just cash relief, including supplement unemployment insurance and extend unemployment insurance benefits to self-employed individuals. Don’t let time and money pass you by, while others decide to get their hands on both at your expense. Questions and concerns can and will extend beyond this summary even for those who read and feel a general sense of understanding because of it, so ask those questions without hesitation. That little bit of time waiting could be all the difference.