About 2.4 million Californians will have to wait weeks to receive new extended unemployment benefits, according to the state’s Department of Employment Development, which has struggled during the pandemic to deal with a deluge of unemployment insurance claims. The new delays apply to freelancers and those on a federal extension plan.
The $ 1.9 trillion American Rescue Plan, signed by President Biden last week, adds $ 300 a week to unemployment benefits until Labor Day and extends some special pandemic programs. But the benefits expired on March 14, and the state agency said it needed more time to implement the new provisions, giving April 10 and 30 as target dates for different categories.
“We shouldn’t ask people who are unemployed, who have no money coming in, to wait,” said state senator Josh Becker, D-Menlo Park. “That’s why we have unemployment insurance. It shouldn’t take that long. “
EDD said earlier that it would continue to benefit most people without interruption. He has already specified that continuity only applies to people with regular unemployment for less than 12 months, as well as those who are on the FED-ED, the Federal-State Extended Duration program, which adds additional weeks during periods of high unemployment for people who has exhausted regular benefits.
Californians in some other categories – numbering 2.4 million – will need to wait until the agency implements the new federal push. Once that happens, these people will receive all the retroactive benefits they were entitled to, said EDD.
“California is working to launch these new programs as soon as possible,” EDD said in a press release, blaming the delay for the U.S. Department of Labor to issue additional guidance. The Labor Department said on Monday that many states may need until mid-April or later to update their computer systems to deal with changes.
Those affected:
• PUA, or Pandemic Unemployment Assistance, is a new program that Congress created last year for people who are self-employed, executive or self-employed, who would not normally be eligible to receive benefits. The Department of Labor figures show that there are 1.4 million Californians in the PUA.
EDD said that existing PUA beneficiaries cannot be sure of the benefits until April 10. Certification is required every two weeks to keep the benefits flowing.
New PUA applicants can apply for benefits now and will receive at least $ 167 a week, plus an extra $ 300, EDD said. After April 10, they will be able to provide income verification, which can increase the minimum from $ 167 to up to $ 450.
• PEUC, or pandemic emergency unemployment compensation, adds additional weeks for people who have exhausted regular unemployment. The Department of Labor shows that 1 million Californians are in PEUC.
EDD said that Californians who receive these benefits cannot be certified for additional weeks until April 30.
The stimulus added an additional 29 weeks to PEUC, allowing a total of an additional 53 weeks of benefits after people exhausted the state’s regular unemployment.
• People who have been unemployed for 12 months. When the pandemic and shelter applications arrived in March 2020, millions of people lost their jobs. If they have not found new jobs, these people are now reaching the 12-month mark to receive benefits – and many more will reach that mark in the coming weeks. If they are regularly unemployed, all of these people must reapply for a new claim. EDD will notify them of this via their UI Online account or by mail.
“Depending on their status and eligibility status, EDD will either move them to a new regular SD order from the state or connect them to any recently extended federal benefits that they may qualify for,” said EDD.
The agency did not answer several questions about how long this process will take. External observers said they hoped this would create an impasse.
• Tax aid. The American Rescue Plan exempts $ 10,200 from unemployment benefits received in 2020 from federal taxes. The tax day has been extended to May 17 this year.
For people who have not yet filed their statements, the IRS is providing a spreadsheet and also working with companies that make tax preparation software to update their products.
For unemployment beneficiaries who have already completed their 2020 income tax return, the IRS said they should not file an amended claim and instead expect it to issue additional guidance.
Criminals stole billions of dollars in unemployment benefits during the pandemic. State officials said EDD paid at least $ 11 billion to fraudsters.
Some con artists have used the identities of innocent people, who are receiving tax forms from EDD showing the amounts paid. People who have been victimized in this way should report to EDD online or by calling 866-401-2849 (Monday to Friday, 8 am to 5 pm).
California EDD: Information and Resources
Tips: Getting your unemployment benefits with EDD
Latest news: EDD says it will automatically add new federal benefits
Carolyn Said is a writer for the San Francisco Chronicle. Email: [email protected] Twitter: @csaid