Due to the COVID-19 many have unfortunately have lost their jobs. Some of you may already know how the CARES Act affects your unemployment benefits, while others still have a lot of questions. Below is 6 questions and answers on how the CARES Act may affect individuals and those self-employed.
1. Will I qualify for state unemployment benefits? Full-time employees who are laid off are eligible for unemployment. However, the CARES Act allows individuals that are not usually eligible for state and federal unemployment benefits, a set amount of compensation, this includes part-time employees and those who are self-employed.
2. How much compensation will I receive? There are 2 elements in the CARES Act dealing with unemployment benefits:
• An individual’s benefits are based on the state in which you work
• Each individual will receive an additional $600 per week of unemployment from the federal government, in addition to their state unemployment benefits.
3. How are the self-employed benefits calculated? Part-time and full-time self-employed individuals are eligible for benefits based on previous income. These workers are eligible for an additional $600 per week.
4. How many weeks will state unemployment benefits last? Most states provide 26 weeks of benefits. However, the CARES Act provides an extra 13 weeks of unemployment benefits, making an individual eligible for 39 weeks of benefits.
5. How many weeks will the $600 federal payments be available? The additional $600 federal payments are set to expire on July 31, 2020.
6. How can I apply for unemployment compensation? Whether online or in-person, individuals must apply for benefits through their state unemployment office. Some states may still need to update their system to reflect each type of individual that is now eligible for benefits under the CARES Act. Those who are normally not eligible for unemployment compensations may need to check with the state unemployment office/ website to see when they can apply for benefits.
It’s important that if you become unemployed that you file for unemployment as soon as possible. It’s also important to be patient since there are many individuals applying for benefits. Here at Summit CPA we will do our best to keep you informed as updates become available. You may visit our website or contact our office at (866) 497-9761.