What You Need to Know About Pandemic Unemployment Insurance

By Diane Tait

Image courtesy flickr

To say that the Coronavirus has had an impact on the economy is an understatement.  Many businesses are either completely closed down or have laid off many of their employees.  The country is on the brink of a recession.  During the last few weeks alone more than 17 million unemployment claims have been filed.  This makes it the highest rate of unemployment since the Great Recession.  While all Americans hope and pray that the government’s enforced lockdown will end soon, for those of you who have lost their source of income, this may come as too little too late.  To help give you a leg up on what the feds are offering other than a one-time payment of $1,200, I did a little research to let you know what’s currently available, how much you can expect to get paid and how to apply for benefits.

At the end of March, the Senate passed the nation’s largest unemployment package ever. – That’s the good news.  The bad news is that 3.3 million Americans applied for aid one week later.  This has meant hours long delays on the phone and state unemployment computers crashing because the system is overwhelmed.  What’s even worse is that millions more Americans are expected to be laid off between now and the end of April.  This will only make it harder for the unemployed to file for benefits. 

Image courtesy flickr

Who is qualified to receive assistance? -  Due to the severity of the financial hardship being imposed on the American people, the federal government is extending financial assistance to all those who’ve been affected.  This includes employees, employers and even independent contractors and self-employed workers. 

     1.    Laid off employees – should go to https://connect.myflorida.com to file an application for unemployment compensation.  Not only will this help you qualify you for traditional unemployment benefits through the state, but you could also qualify for up to an additional $600 per week courtesy of the Pandemic Compensation (PUC).  These benefits are guaranteed through July 31, 2020.

      2.      Independent contractors and self-employed individuals–The State of Florida has also created a program called Pandemic Unemployment Assistance (PUA) that’s specifically designed to extend unemployment benefits to workers who were not traditionally eligible for benefits, including self-employed people through December 31, 2020. These benefits are going to be provided for a maximum of 26 weeks.

      3.      Does accepting gig work during the crisis disqualify you from receiving benefits? – Not necessarily.  It probably will reduce the amount of benefits you receive through the state.  But it won’t disqualify you from receiving up to $600 per week in in federal unemployment benefits provided by the pandemic relief act known as CARES

      4.      Business owners have even more ways to seek compensation for lost revenue. – Here are several links to programs that are currently available.

Image courtesy flickr

a.       SBA Economic Injury Disaster Loan (EIDL) – This loan program is available through commercial banks, credit unions and other approved lenders. Eligible businesses with fewer than 500 employees, as well as sole proprietors, independent contractors and self-employed individuals may apply for loans of up to $2 million.  These loans are designed to cover the eight weeks of expenses from January 1- December 31, 2020.  The loan can be used to cover payroll costs, including salaries, commissions and tips, plus business rent or mortgage payments, accounts payable and other business expenses.  Here’s the link: https://covid19relief.sba.gov/#/

b.      Paycheck Protection Program Loan (PPPL) – These loans are designed to cover the eight weeks of expenses from February 1- June 30, 2020.  The loan amount is calculated using 2.5 times the average monthly payroll costs, including salaries, commissions and tips, plus business rent or mortgage payments, accounts payable and other business expenses.  Payments and interest are automatically deferred for six months.  Here’s a link to a video that explains the PPPL:  https://www.uschamber.com/co/events/national-small-business-town-hall-inc-us-chamber

Still confused about whether you qualify for assistance during the COVID-19 crisis?

Not to worry.  The Florida Department of Economic Development has commissioned a 6-page FAQ designed to help you determine your qualifications and eligibility for reemployment assistance benefits.  It not only answers many of the questions that those whose pay has been cut or have lost their means of making a living, but it even provides you with the online link to apply for benefits.

https://www.uschamber.com/co/events/national-small-business-town-hall-inc-us-chamber

Who doesn’t qualify? – If you are currently being paid to work from home, are on paid leave or quit your job, you don’t qualify for any of the updated unemployment benefits. The only exception to the rule is if you were forced to self-quarantine due to potential exposure.  However, the only way to know for sure is to apply…if you can get through via phone or online. 

Diane Tait owns and operates A&B Insurance.  To find out more about how you can save money on insurance, go to her site or fill out the form at right.