Over the past several weeks, millions of Americans have lost their job due to the coronavirus. In response to this unprecedented level of unemployment, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which provides individuals and businesses financial relief caused by the pandemic. If you find yourself among the millions of newly unemployed, you might have questions about the CARES Act and how you can use it to help you and your family.
Questions and answers
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Who qualifies to receive 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.
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How much will I receive? There are two different components to the new law’s unemployment benefits:
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Each worker will receive unemployment benefits based on the state in which they work, and
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In addition to their state unemployment benefits, each worker will receive an additional $600 per week from the federal government.
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How will benefits for self-employed workers be 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.
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How long will the state unemployment payments 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.
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How long will the federal payments of $600 last? The federal payment of $600 per week will continue through July 31, 2020.
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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 are unemployed and have not already done so, you must file for unemployment with your state as soon as possible. State offices and websites are being slammed, so the sooner you get in the queue the better for you and your loved ones. And remember, these benefits now apply to self-employed and part-time employees.
This article carries no official authority, and its contents should not be acted upon without professional advice. For more information about this topic, please contact our office.