Anniversary of unemployment benefits: Unemployed workers face the ‘end of the benefit year’

Anniversary of unemployment benefits: Unemployed workers face the ‘end of the benefit year’

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Those who are still out of work may soon start receiving notices from state unemployment agencies warning them that they are approaching the end of the benefit year – which happens 52 weeks later an initial complaint is filed.

Typically, the end of the benefit year means that the unemployed person would have to place a new claim to determine eligibility for benefits and recalculate the payment amount based on more recent earnings.

But, as with everything in the pandemic, it is more complicated now.

Some unemployed Americans may have to apply again, which could cause a temporary disruption in benefits and possibly a slightly lower payment later – although the December aid package provided some protections for the long-term unemployed. But others will not have to do anything and will continue to receive the same amount as before.

Much depends on the state in which the applicants live, whether they have worked for the past year and which unemployment program they are on.

There are several unemployment programs

Congress created two new unemployment insurance programs in its historic expansion of the country’s unemployment system last March. Lawmakers opened up eligibility for those who did not qualify in the past, such as self-employed workers, and dramatically increased the number of weeks that people can receive payments.
The Pandemic Unemployment Assistance program allows self-employed, concert workers, independent contractors, self-employed workers and certain people affected by the pandemic to receive benefits. The pandemic emergency unemployment compensation program extends the duration of benefits to those in your state’s regular unemployment program.
The unemployed in both programs can receive payments until September 6, according to the $ 1.9 trillion aid package that President Joe Biden signed last week.

In addition, thanks to a provision in the December $ 900 billion relief package, those on the Pandemic Emergency Unemployment Compensation program are unlikely to see a drop of more than $ 25 in their weekly payments if they have to reapply, he said. Andrew Stettner, senior member of The Century Foundation.

States are handling the end of the benefit year differently. Some are automatically renewing enrollments so that the unemployed don’t have to do anything, but others are notifying certain applicants that they need to re-apply or their benefits may be suspended.

The New Jersey Department of Labor and Workforce Development, for example, has reprogrammed its system to review end-of-year claims for large-scale benefits. That is urging claimants do not open a new application.

Instead, those who have earned a certain salary level will have a new action on their behalf, the agency says. And those who have not worked or have not reached the income limit will continue to receive benefits from their existing claims.

“Our goal is to make this perfect for most claimants,” said Labor Commissioner Robert Asaro-Angelo earlier this month. “We have the schedule to complete the historic volume of year-end claims reviews that federal law requires.”

Other states have their own rules

However, New York is taking a different approach. Your Department of Labor is telling those receiving Pandemic Unemployment Assistance benefits not to re-apply and to continue to be certified weekly. The same goes for those on the state’s regular unemployment program who have not worked or have not earned 10 times their weekly benefit rate since the start of the initial claim.

But those who have earned more than that amount must file a new complaint, says the agency. And your new payments may be slightly lower.

If they continue to place the order using the expired order, their benefits may be interrupted. After they apply again, it may take two to three weeks for the new application to be processed and for benefits to be restarted.

The state is sending text and email messages to applicants as they approach the end of the benefit year. The message tells you whether they are on the state pandemic or regular program.

In Texas, unemployed people who filed for the first time a year ago must await instructions from the state unemployment agency, which advises against trying to call.

Those on the state program who worked and earned above a certain threshold in the previous year will have to apply again, said James Bernsen, a spokesman for the Texas Workforce Commission. But if the recalculated weekly benefit cuts more than $ 25 from their assistance, they will continue to receive payment for the old claim.

In the meantime, unemployed Californians will receive a notice through their online account or through the Employment Development Department mail stating that their application is expiring and that they must apply again. Depending on the situation, the agency will either transfer them to a new state claim or connect them to federal programs.

One more thing: all those who participate in the state’s extended benefits program will have to sign up again when they reach the end of the benefit year. And they are not protected by the December relief clause, so if they haven’t worked as hard recently, they will likely see a lower weekly pay.

The unemployed should pay close attention to state unemployment agencies’ warnings and reapply if requested, said Stettner. If they fail to do so, the state agency may require a return of part of the payment if the weekly benefit is reduced.

“People are a little panicked about the end of the benefit year, but it is important to understand that this does not mean that their benefits are ending,” he said. “That means they may have to reapply if they work. You don’t want to be hurt by an overpayment.”

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