A new $ 900 billion economic stimulus and relief package extends unemployment benefits to millions of needy Americans.
The new measure provides unemployment insurance for people whose extended benefits expired on December 26 and avoids a cliff of unemployment that would have been “economically insane,” unemployment researcher Andrew Stettner told NextAdvisor earlier this month.
Even so, a lot of logistics for these programs await guidance from several agencies, such as the Ministry of Labor.
The new benefits will take some time to take effect, says Elizabeth Pancotti, a policy consultant at Employ America, a study group on labor policies. Many workers noticed a gap in the payment of unemployment. Pancotti and Stettner co-authored a widely-read report in November on the impending cliff of unemployment for The Century Foundation, another labor policy firm.
Here’s what you need to know about the new measures:
Extended unemployment benefits
This extended federal aid is added to state unemployment programs, from which the unemployed can still get help.
Who qualifies for extended unemployment benefits?
The package establishes a temporary supplement of $ 300 per week in unemployment benefits for all unemployed workers, a reduction from the $ 600 in additional benefits provided to unemployed workers under the CARES Act which ended in July.
It also extends two programs, Pandemic Unemployment Assistance (PUA) and Pandemic Emergency Unemployment Compensation (PEUC). The PUA program offers benefits to self-employed, self-employed and other workers who are normally not eligible for state unemployment benefits, and PEUC allows states to provide up to 13 weeks of federally funded unemployment benefits to those who have used all state benefits available.
If you qualify for any unemployment checks in your state or these federal programs, you will also be entitled to the $ 300 weekly raise.
How long will extended unemployment benefits be available?
The $ 300 extended benefit will be available to unemployed workers for an additional 11 weeks, until March 14, 2021. The package reaches a maximum of 39 weeks to receive benefits set out in the CARES Act. It is now a maximum of 50 weeks. If you do not reach this maximum by March 14, you can receive help until April 5, after which there will be no further payments.
No new applications will be accepted after March 14.
When will the new unemployment benefits start to be paid?
“Payments in the coming weeks will be in limbo,” says Pancotti. “Workers are expected to anticipate a few weeks in January without pay and with late payments.”
During the weeks you are eligible for the $ 300 enhanced benefits, but are not paid because the system is backed up, you go get paid back for those eligible weeks. But that means that you will probably spend a few weeks without assistance.
“You will receive a fixed amount check for how many weeks it takes, but it will affect many people’s finances,” said Pancotti. “People need to know that the check they think will pay the rent in January is unlikely to arrive.”
What if you are unemployed but are not receiving benefits from the PUA or PEUC program?
If you are unemployed and do not receive PUA and PEUC benefits, the first step is to apply for benefits from your state’s unemployment program. PUA and PEUC exist to extend benefits to workers who would not normally qualify and to support state programs by providing additional funds after you have used the maximum amount of benefits available in your state.
You will still receive that extra $ 300 benefit once you qualify for a state unemployment program.
What if I have side agitation that is not taken into account in my unemployment insurance?
If you have a salaried job and If you are self-employed or touring (ie driving to Uber, self-employed, have a contract, etc.), then you may be eligible for a $ 100 raise in addition to the $ 300 benefit.
But you must have earned at least $ 5,000 in income from your self-employment in 2019.
What if your unemployment benefits end before new benefits and additional stimulus payments are received?
Unemployment benefits for millions of Americans are set to expire on December 26. With uncertainty about exactly when these benefits and stimulus payments could hit their bill, millions of Americans may still face a loss of benefits.
If this applies to you, make sure you have covered all your bases and start taking action now to prepare.
Stimulus payments
The new package also includes direct and one-off stimulus payments. Each American will be entitled to up to $ 600 or $ 1,200 for joint filers. Payments will decrease for Americans who earned more than $ 75,000 in 2019 or for joint filers who earned $ 150,000. Parents will also receive $ 600 per dependent child.
What if I make less money this year – do I qualify for more stimuli?
Yes. If your income was lower this year than the previous year registered with the IRS, you can claim that money back on your taxes. For example, if you had $ 150,000 in revenue in 2019, but were released in the first round of layoffs in 2020 and earned just $ 20,000 this year, you can recover that difference.
“Archive in advance and file electronically; the IRS plans to withdraw these funds, ”says Pancotti.
How and when will the new stimulus payments be paid?
If you qualify for a stimulus check, you will be paid electronically by direct deposit through the Automated Clearing House (ACH) network.
If you have qualified for the last round of stimulus payments, and your direct deposit information is already in the system, you can expect your payment within 10 days, the IRS estimates. If you’re not receiving direct deposit, the government will start cutting 10 million checks a week and distributing prepaid debit cards, says Pancotti.
“I think it will be much faster than the last time, with all the information we know now,” says Pancotti.
How can you know exactly how much your stimulus payment will be?
Your stimulus payment will be based on your 2019 adjusted gross income. Individuals who have earned up to $ 75,000 will be eligible for the total payment of $ 600, while those who earn between $ 75,000 and $ 87,000 will receive reduced amounts. Joint filers with an income of up to $ 150,000 are eligible for full payment, while those earning between $ 150,000 and $ 174,000 will receive a reduced amount.
The Washington Post reports that almost 85% of American households will receive some stimulus payments and offers a stimulus calculator to determine exactly how much their payments will be.
Other benefits and support
The new bailout bill also extends the national eviction moratorium and includes financing for small businesses, expanding food support and vaccine distribution.
Rental assistance and eviction moratorium
The new package extends the nationwide eviction moratorium until January 31, 2021 and allocates $ 25 billion for rent relief. This effort is being carried out through the Department of the Treasury and is being distributed to states, and then to local governments, which can allocate funds to local housing agencies.
“While extending the CDC eviction moratorium for just a month is insufficient to keep people housed during the pandemic, the extension offers essential and immediate protection for millions of tenants who are about to lose their homes in January,” said Diane Yentel, the CEO and president of the National Low Income Housing Coalition in a statement on Sunday.
Food Support
The package also allocates an additional $ 13 million to the Supplemental Nutritional Assistance Program (SNAP) – also known as food stamps – increasing maximum benefits through the food assistance program until June 30, 2021.
Business help
The package includes $ 284 billion for the Salary Protection Program (PPP), providing forgivable loans to small businesses that qualify.
School and child support
A $ 10 billion grant is being given to provide daycare assistance to families and to help daycare providers to cover the rising costs of the pandemic.
Money for vaccine distribution
$ 69 million is allocated for vaccine distribution and development.