On Friday, March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act was signed into law by the Federal Government. The CARES Act was enacted for the purpose of offering much-needed relief to businesses and individuals negatively impacted by the COVID-19 outbreak.
This Firm has provided an outline of the impact which can be found at https://hoplerwilms.com/blog/2020/03/31/coronavirus-aid-relief-and-economic-security-act/.
CARES Act Details
As part of the Cares Act, Congress directed $250 billion dollars in economic aid to be issued to State Unemployment Insurance benefit programs. The Act provides an additional stimulus to citizens filing for UI benefits who can expect to receive an additional $600.00 per week. In addition, it was also anticipated that Independent Contractors would be able to file for benefits for the first time.
For our State, these changes were predicated on the North Carolina Division of Employment Security (“DES”) awaiting for and providing additional guidance, which was recently submitted.
North Carolina Unemployment Insurance Payments Status
The DES is now reporting that it expects to make the first payment of $600.00 to those individuals filing under the COVID 19 impact by April 17, 2020. The DES is also reporting that eligible self-employed workers and independent contractors, who do not normally receive a W-2, will begin receiving unemployment benefits. The DES is providing guidance that church employees, who are typically exempt from unemployment taxes, will also be eligible to file for benefits under this self-employed exemption, as well.
Despite the overwhelming amount of claims filed, the DES has been working diligently to update its systems and will be ready to accept UI claims from self-employed workers by approximately April 25, 2020.
The DES is advising people that due to the logistical crunch of this pandemic, while self-employed claims may be filed prior to April 25, 2020, no eligibility determinations will be issued until such time. Nonetheless, it is strongly recommended that individuals file claims, as soon as possible.
Additional Unemployment Insurance Extended by 13 Weeks
Another key piece of guidance from the DES is that the State will be providing up to 13 weeks of additional benefits for those individuals whose benefits have been exhausted. Currently, the State’s unemployment benefit weeks are capped at between 12 and 20 weeks depending on the seasonally adjusted statewide unemployment rate. Now, if an individual exhausts the State cap, he or she can rely on a Federal increase of 13 weeks.
The DES will continue to provide updates regarding claims and administrative requirements and we will do our best to alert our community of these changes.
If you need assistance with unemployment claims, please call us for a virtual consultation: (919) 244-2019 or fill out a form here: https://hoplerwilms.com/virtual-appointments/