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April 04, 2020 | Posted in:

How the CARES Act Enhances Unemployment Benefits

The recently passed Coronavirus Aid, Relief, and Economic Security (CARES) Act provides individuals and businesses significant financial relief from the financial strain caused by the coronavirus epidemic.

Here is a snapshot of the unemployment benefits section of the bill and how it affects individuals and businesses.

 

Who qualifies to receive state unemployment benefits?

In addition to full-time workers who are laid off or furloughed, the Act provides individuals who are not already eligible for state and federal unemployment programs, including self-employed individuals and part-time workers, a set amount of unemployment compensation.

 

How much will you receive in state unemployment benefits?

There are two different components to the new law’s unemployment benefits:

· Each worker will receive unemployment benefits based on the state in which they work, and

· In addition to their state unemployment benefits, each worker will receive an additional $600 per week from the federal government.

 

How are self-employed unemployment benefits calculated?

Benefits for self-employed workers are calculated based on previous income and are also eligible for up to an additional $600 per week. Part-time workers are also eligible.

 

How long do state unemployment benefits last?

The CARES Act provides eligible workers with an additional 13 weeks of unemployment benefits. Most states already provide 26 weeks of benefits, bringing the total number of weeks that someone is eligible for benefits to 39.

 

How long will the federal unemployment payments of $600 last?

The federal payment of $600 per week will continue through July 31, 2020.

 

How do I apply for unemployment benefits?

You must apply for unemployment benefits through your state unemployment office. Most state applications can now be filled out online. Workers who normally don’t qualify for unemployment benefits, such as self-employed individuals, need to monitor their state’s unemployment office website to find out when they can apply, as many states need to update their computer systems to reflect every type of worker who is eligible to collect unemployment benefits under the CARES Act.

 

What to do NOW

If you have lost your job, you must file for unemployment with your state as soon as possible. State offices and websites are being overloaded, so the sooner you get in the queue the better for you and your loved ones.

 

COVID-19 Resource Center from Alloy Silverstein CPA Firm Accountants and Advisors NJ

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