The CARES ACT & Unemployment Insurance 4.8.20 Update

We hope that everyone is well. There have been very few developments since our last update. The State Departments of Labor have been overwhelmed with claims that are beyond the capability of many antiquated state computer systems to handle. State employees in some states are being re-deployed to handle the overload but in some states (New York in particular) it is not enough. If your employees inquire if there is anything else that can be done because they can’t get through or their on line applications are not being processed, all you can tell them is to keep trying – we have no inside connection to assist.

It has become apparent that the $600 federal supplemental payment will be made to any claimant who is entitled to any benefits for the week at issue – that $600 will not be pro-rated if the claimant is entitled to only partial regular payments due to working part time. That $600 will be subject to federal income tax to the recipient, which depending on the state may be able to be withheld upon payment to the claimant of the $600. How and when the supplement will be paid is up to each state – as indicated above many states are struggling to upgrade their computer payment system to allow for such payments so it may not happen immediately. Again, if you get an inquiry from an employee about this you should direct that person to the state Department of Labor as it is out of your (and our) control.

We will keep you updated with any developments but if you have a particular question please feel free to reach out to us. Thanks and stay healthy!

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