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Astoria Strategic Wealth

C.A.R.E.S. - Part II - Unemployment Compensation Benefits

One aim of the C.A.R.E.S act is to broaden the scope of unemployment assistance and it did exactly that. Below are the major unemployment provisions.

Pandemic Unemployment Insurance

This covers those who traditionally would not qualify for unemployment insurance such as the self-employed and independent contractors. It is a temporary program that runs through December 31,2020.

Unemployment Check Increase

The CARES Act provides an additional $600 per week on top of state unemployment benefits to those receiving unemployment provisions through traditional unemployment insurance or pandemic unemployment insurance. This lasts for up to four months.

No More Waiting Period

Unemployment insurance typically requires a one-week waiting period in which the unemployed does not receive benefits. That week has been waived under the C.A.R.E.S. Act.

Longer Benefits

The limit for unemployment insurance benefits is typically 26 weeks, but under the C.A.R.E.S. Act, that has been extended to 39 weeks.

Short-Term Compensation

The C.A.R.E.S. Act provides federal funding for short term compensation programs to allow employers to reduce employees’ hours rather than laying them off. The federal government would then pay for the pro-rated unemployment benefits the employees would receive. If a state does not have a short-term benefit program, they may create one after the bill’s passage, but the government would then only cover 50% of benefits.

Please remember that these summaries are intended to provide general guidance and should not be interpreted as individualized planning, investment or tax advice. Please contact your tax preparer for advice specific to your situation.