Extended Benefits: Number of Weeks of Eligibility; Who is Financially Responsible?
employers continue to ask questions regarding the current duration of extended unemployment
benefits and are unsure about who is paying for these benefits. The following recaps
the types of benefits available to individuals and identifies who is responsible for
paying for each type of benefit.
State Unemployment Compensation – represents
benefits paid to workers who are unemployed through no fault of their own. Benefits
are calculated based on previous earnings and the number of weeks an individual has
been active in the workforce. These benefits are available to individuals for up to
a maximum of 26 weeks.
state unemployment compensation benefits are funded almost totally by employers. This
is accomplished through either a merit rated tax paid to the states or through direct
reimbursement to the states for any benefits paid to former employees (an option available
to some non-profit employers and government agencies).
Unemployment Compensation (EUC) Extended Benefits – Originally
legislated in 2008, these benefits were extended in February of 2009 as part of the
American Recovery and Reinvestment Act of 2009. They were recently extended once again
by President Obama through legislation signed on July 22, 2010.
on several factors, individuals may receive up to an additional 53 weeks of unemployment
benefits, once they have exhausted the 26 weeks of benefits available to them through
the regular state unemployment insurance program.
good news for employers is these benefits are 100% funded by the federal government.
No employers are being asked to pick up any portion of the cost related to these benefits.
the most recent legislated provisions, the deadline for individuals to apply for EUC
benefits is November 30, 2010 and no EUC payments will be made after April 30, 2011
without another extension.
Extended Benefits – Based
on varying state economic factors, individuals who exhaust both their regular state
benefits and their federally funded EUC benefits may be eligible for up to 20 weeks
of state extended benefits.
legislation signed by President Obama in July also extended the federal funding of
these state extended benefits to December 1, 2010. This applies to both taxpaying
and reimbursing employers, with the exception of government entities and Indian tribes.
may currently be eligible to receive up to a maximum of 99 weeks of unemployment compensation
those who have exhausted all potential 99 weeks of benefits, there are no additional
benefits available to them. As the number of individuals falling into this category
continues to grow, there may be pressure to enact additional legislation either increasing
the number of weeks of EUC benefits and/or extending the time frame for receiving
This weblog is sponsored by TALX.
Recommended For You
Unemployment claims anticipated to be filed during this record surge are expected to have a negative impact on SUI tax […]
States can Tap into $1 Billion in Federal Funding to Upgrade Technology and Data Use Unemployment persists even as many […]
The U.S. is Seeing a Spike in Fraudulent Unemployment Claims As of May 14, a report from CNBC tallied up […]
Unemployment Regulations are Changing, and We’re Sharing the Latest With companies scrambling to manage their workforces during the COVID-19 pandemic, […]