Workers in some states, including New York, Minnesota and Rhode Island, may begin to see the latest $ 300 increase in weekly unemployment hit their accounts starting next week.
The Labor Department confirmed this week that workers will be entitled to the full 11 weeks of enhanced unemployment benefits set out in Covid’s $ 900 billion rescue package for periods of unemployment from December 27 to March 14, 2021. Payments from first week covered in the act, which ends on January 2 or 3, depending on the state, will come out early next week.
Previously, lawmakers and labor experts feared that President Donald Trump’s delay in signing the bill would cut aid to millions of unemployed Americans for 10 weeks, although that is no longer the case.
While some states expect to receive further reinforced payments after this weekend, others may take several weeks to reintroduce new payments for a record number of claimants. With that said, most states are expected to start distributing the $ 300 incentive to workers in the next two to three weeks, writes Andrew Stettner, senior researcher at The Century Foundation.
Freelancers and concert workers in Pandemic Unemployment Assistance, and those who have exhausted their state aid and switched to Pandemic Emergency Unemployment Compensation, may also have to wait several weeks before resuming aid while states reconfigure their computer systems to administer new payments; however, the benefits will be retroactive to the signature of the invoice. Approximately 13.2 million Americans are currently using one of these two programs, which were also extended until March 2021.
New $ 100 increase for mixed-income people may take longer to arrive
The latest stimulus package features a new $ 100 weekly increase for mixed wage earners who have wage income, such as from a W-2 job, and self-employment or independent contractor income, as from a 1099 function, but whose benefit calculation may be artificially low when excluding income autonomous work.
Mixed wage earners who earned at least $ 5,000 in self-employment income last year will qualify and may receive regular state aid, PEUC or Extended Benefits.
So far, states including Florida, Illinois, Minnesota and New York have declared intentions to offer the new increase in Mixed Salary Unemployment Compensation, which is in effect until March 14, 2021. States can also choose not to join.
With the signing of the stimulus project, state unemployment offices are now awaiting federal guidance to determine how to administer new benefits to residents. Michele Evermore, senior policy analyst at the National Employment Law Project, says it is “highly unlikely” that states will be able to proactively identify the people who are entitled to this benefit. She recommends that workers affected by the new policy seek their state agencies to find out the process and what documentation they will need to provide to prove eligibility.
How will the latest $ 300 weekly increase in unemployment affect your family? Are you worried about the end of federal unemployment benefits in March? CNBC Make It would like to hear from you. Email job reporter Jennifer Liu at [email protected].
Output check:
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