UPDATES TO CARES ACT UNEMPLOYMENT / Q&A · 2020. 5. 1. · • “Changes to Florida Unemployment Due to COVID-19 • “In response to the coronavirus pandemic, Florida has changed

UPDATES TO CARES ACT UNEMPLOYMENT / Q&A

EBFConnect Webinar May 1, 2020

Thomas Maddrey General Counsel, EBF

Maddrey PLLC www.MaddreyPLLC.com [email protected]

http://www.MaddreyPLLC.com

mailto:[email protected]

D I SCLA IMER ( S IGH… LAWYERS… )

The COVID-19 pandemic and related actions by local, state, and federal governments is changing by the day. Maddrey PLLC and EBF cannot guarantee or endorse the current accuracy of the information presented. The following, info, links, and webinars are being shared as additional resources to all viewers, though we always recommend caution and vigilance for outdated or incorrect information.

You should always check with your CPA or tax professional, attorney, or other advisors when making specific decisions about your situation. This is an informative presentation, not specific legal advice.

Although the content we've created was accurate at the time of posting, that may have since changed, given the fluid nature of the COVID-19 situation. As a result, please regularly consult federal guidelines and your state and local authorities for updates. Further, Maddrey PLLC and EBF accepts no responsibility, and will not be liable for, the use of or reliance on the information provided. Bottom line? Check and double check. We strongly recommend it.

EBFConnect Webinar :: May 1, 2020 // www.ernestbrooksfoundation.org / www.MaddreyPLLC.com


CHANGES I N THE LAST WEEK• April 21, 2020 - Senate passes bill funding PPP, EIDL, and other programs.

• April 23, 2020 - House passes bill funding PPP, EIDL, and other programs.

• April 23, 2020 - Treasury issues a new version of the FAQ

• April 24, 2020 - President signs bill into law. As of 1:45pm (EST) SBA.gov is not accepting new

applications for EIDL. Unknown when SBA or banks and lenders will open applications.

• April 27, 2020 - SBA started accepting applications from banks and lenders again. System

overwhelmed.

• As of today, May 1, 2020, the PPP program remains open…

• But, as of today, the EIDL program is still not accepting new applications.


http://SBA.gov


I MPORTANT L INKS• Paycheck Protection Program

• https://home.treasury.gov/policy-

issues/cares/assistance-for-small-

businesses

• https://www.sba.gov/page/

coronavirus-covid-19-small-business-

guidance-loan-resources

• EIDL + Advance Program

• https://www.sba.gov/page/

coronavirus-covid-19-small-

business-guidance-loan-resources

• Unemployment

• https://www.dol.gov/

coronavirus/unemployment-

insurance


https://home.treasury.gov/policy-issues/cares/assistance-for-small-businesses



https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources






https://www.dol.gov/coronavirus/unemployment-insurance




MORE MON EY ?• $484 Billion Total

• $321 Billion for Paycheck Protection Program

• $60 Billion for Economic Injury Disaster Relief (EIDL)

• $75 Billion for Hospitals

• $25 Billion for Testing

• THIS WILL NOT LAST FOREVER.

• PLEASE APPLY.

• PLEASE APPLY.



PL EASE APPLY



WHERE TO APPLY FOR PPP (W ITHOUT AN ACCOUNT )

• Here are lenders that we have heard positive experiences with:

• BlueVine

• Paypal

• Lendio

• Square

• Quickbooks Capital

• Kabbage

• … your local bank

• Note: No promises here. Money may run out at any time. But get that application in!



HOW TO APPLY FOR THE PPP• Too long to review here, but please see the

following sites / articles:

• Maddrey PLLC COVID-19 Resource Center - https://maddreypllc.com/covid-19-resource-center/

• Paycheck Protection Program :: Why Every Photographer, Artist, and Small Business Needs to Apply

• bit.ly/maddrey-ppp-basics

• How to Calculate PPP Payroll Amount for Independent Contractors, Sole Proprietors, LLC’s, and Corporations

• bit.ly/maddrey-ppp-calculate

• Major Updates to PPP and EIDL

• bit.ly/maddrey-updates-ppp

• The Maddrey PLLC COVID-19 FAQ

• Still being built out…

• https://maddreypllc.com/faqs/


https://maddreypllc.com/covid-19-resource-center/


http://bit.ly/maddrey-ppp-basics

http://bit.ly/maddrey-ppp-calculate

http://bit.ly/maddrey-updates-ppp

https://maddreypllc.com/faqs/


UNEMPLOYMENT I N CARES• The CARES Act includes three major

unemployment policies.

• Pandemic Unemployment Assistance (PUA)

• Federal Pandemic Unemployment Compensation (FPUC)

• Pandemic Emergency Unemployment Compensation (PEUC)

• Each serves a different function.

• CARES Act establishes minimum benefit of 50% of the states average weekly UI benefit ($387 / $194)

• Removes seven day waiting period.

• Benefits are retroactive. (Possibly including the FPUC).

• The bottom line remains the same… THIS IS A STATE ISSUE.



PANDEM IC UNEMPLOYMENT A S S I STANCE ( PUA )

• For the details, search “UIPL No. 11-20” from March 19, 2020 and “UIPL No. 16-20” from April 5, 2020

• Overview

• Up to 39 weeks of unemployment benefits. (Available through December 31, 2020)

• Additional $600 / week on top of state benefits through July 31, 2020.

• Includes regulations implementing Disaster Unemployment Assistance (DUA)

• Weekly benefit amount is equal to amount under state law (subject to minimum DUA benefit).



PU A ( C ON T. )• Eligibility

• Applies to those who are NOT ELIGIBLE to receive regular UC benefits.

• Applies to those who are unemployed, partially employed, or unable to work because of COVID-19.

• If you can get regular UC benefits, not eligible for PUA.

• If you can telework or have paid leave, you are not eligible for PUA.

• This is the one most sole proprietors, self-employed, and ICs will fall under.



FEDERAL PANDEM IC U NEM PLOYM ENT COMPENSAT ION ( FPUC )

• Search “UIPL No. 15-20” from April 4, 2020 for more info.

• This offers the $600 / week through July 31, 2020 to those who ARE eligible for regular state UC benefits.

• This is the name of the program that is funding the $600 provision found in PUA (and in PEUC, STC, and DUA).

• But, if you quit without good cause, then you are not able to take part in this program.

• This is the “additional benefit” part of the CARES Act.



PANDEM IC EMERGENCY UNEMPLOYMENT COMPENSAT ION ( PEUC )

• Search “UIPL No. 17-20” from April 10, 2020 for more info.

• Overview

• This program extends UC benefits by up to 13 additional weeks (most states are at 26 weeks).

• Applies through December 31, 2020.

• Provides $600 / week through July 31, 2020

• Requires that states must be “flexible” with actively seeking work requirements.

• Those who have exhausted all rights to regular compensation under state or federal law AND are ineligible for PUA are ELGIBLE for this.

• If you fit under other UC benefits, this is not for you.



LETS PUT I T A LL TOGETHER• First stop, check with state.

• If you are a SP, or self employed, or otherwise not eligible for regular state benefits, then PUA is probably your correct program.

• Guess what… states don’t have their acts together. At all.

• The additional $600/month is funded by FPUC, and you do not have to apply for that seperately.

• Whether the application for unemployment benefits will negatively impact and be charged against the employer… still unknown.



PPP OR PU A ?• If you are self-employed or a SP, you may

have to decide which route to go. Really, this is still a gray area.

• Here are some considerations:

• First, figure out the maximum amount of your PPP.

• Second, try to figure out the amount of unemployment benefits.

• https://oui.doleta.gov/unemploy/content/sigpros/2010-2019/January2019.pdf

• Minimum benefit of $194/wk. (for 39 weeks) plus $600/wk. for 16 weeks.

• Don’t forget that unemployment is taxable income and PPP is not.

• Many states take out a percentage off the top. Check this number too!


https://oui.doleta.gov/unemploy/content/sigpros/2010-2019/January2019.pdf




F I V E M OST POPU L OU S

STATESEBFConnect Webinar :: May 1, 2020 // www.ernestbrooksfoundation.org / www.MaddreyPLLC.com


QU EST I ONS I A SKED

• Name and Web Address of State Unemployment Office

• Does the state generally accept self-employed and sole propriators?

• Has the state started accepting PUA applications?

• What is the maximum duration of unemployment benefits through state?



CAL I FORN IA• Employment Development Department. https://

www.edd.ca.gov/unemployment/

• https://www.edd.ca.gov/about_edd/

coronavirus-2019/pandemic-

unemployment-assistance.htm

• Generally does accept SP’s.

• Is ready to take PUA applications starting

4/28/20.

• 26 weeks plus 13-week extension via PUA.

• “Due to the impact of COVID-19, we made the

following temporary exceptions for all

Unemployment Insurance claims until further

notice:

• Waiting Period – The 7-day waiting period is

waived for claims beginning on or after January

19, 2020. After you submit your first two-week

continued certification, you will be paid for the

first week of your claim.

• Work Search – You are not required to look for

work each week to be eligible for benefits.”


https://www.edd.ca.gov/unemployment/

https://www.edd.ca.gov/unemployment/

https://www.edd.ca.gov/about_edd/coronavirus-2019/pandemic-unemployment-assistance.htm




TEXAS• Texas Workforce Commission: https://

www.twc.texas.gov

• Generally does NOT accept SP’s.

• Is currently taking PUA applications: https://www.twc.texas.gov/news/pandemic-unemployment-assistance-and-600-federal-pandemic-unemployment-compensation-available-eligible-workers

• 26 weeks plus 13-week extension via PUA

• “Important Note to COVID-19 Applicants: If you have already applied for unemployment benefits, DO NOT APPLY AGAIN. TWC will determine which pandemic unemployment benefits program you are eligible for and notify you by mail or electronic correspondence. Make sure to request benefit payment on the date listed on the filing instructions we provided you when you applied, and every two weeks after that on your filing day.”


https://www.twc.texas.gov/news/pandemic-unemployment-assistance-and-600-federal-pandemic-unemployment-compensation-available-eligible-workers





TEXAS ( C ON T. )



FLOR IDA• Florida Department of Economic Opportunity: https://

www.stateofflorida.com/articles/florida-unemployment/


• Not currently taking PUA specific applications. They say yes, everyone else says no.


• “Changes to Florida Unemployment Due to COVID-19

• “In response to the coronavirus pandemic, Florida has changed some rules of the Reemployment Assistance program. Benefits are now available to self-employed workers and independent contractors. And the governor has waived several program requirements, including the mandatory waiting week for your first payment.

• The state has also launched a new mobile-friendly website that is better prepared to handle the high volume of unemployment applications.”

• Helpful resource: http://www.floridajobs.org/docs/default-source/reemployment-assistance-center/new-individual-faq-includes-cares-act-final.pdf?sfvrsn=5f2547b0_20


http://www.floridajobs.org/docs/default-source/reemployment-assistance-center/new-individual-faq-includes-cares-act-final.pdf?sfvrsn=5f2547b0_20





NEW YORK• New York Department of Labor: https://labor.ny.gov/

unemploymentassistance.shtm


• Yes, can apply today. Visit: https://unemployment.labor.ny.gov/

login

• See also: https://www.labor.ny.gov/ui/pdfs/ui-covid-

faq.pdf

• See also: https://labor.ny.gov/ui/pdfs/pandemic-

unemployment-assistance.pdf

• https://labor.ny.gov/ui/pdfs/cares-act-need-to-know-

flowchart.pdf

• See also: https://www.labor.ny.gov/ui/pdfs/pua-

factsheet.pdf

• Up to 26 weeks + 13 week extension.

• “DOL has launched an updated, streamlined online application

that allows New Yorkers to apply for either traditional UI or PUA,

depending on eligibility. You do not have to complete a separate

application for PUA.”

• “File a new Unemployment Insurance claim here. Our online

filing system has been improved to better serve New Yorkers. You

may file your claim any day of the week (Monday-Sunday) from

7:30 AM to 7:30 PM (Eastern Time). New Yorkers who have

already filed partial claims under the old UI system and were

told to call the call center to finish their application should NOT

- instead, the DOL call center will call these New Yorkers

directly.”



PEN N SY LVAN I A• Pennsylvania Office of Unemployment

Compensation: https://www.uc.pa.gov/Pages/default.aspx


• Is ready to take PUA applications: https://www.uc.pa.gov/unemployment-benefits/file/Pages/Filing-for-PUA.aspx


• “Our PUA System has been corrected. For individuals who believe they inaccurately received the PUA ineligibility message below, please try filing for PUA again via the button below.

• The application will be effective the week you were first unemployed and is not based on the day you submit your PUA application.

• If you still receive the below ineligibility message, then you may be eligible for regular unemployment compensation and are appropriately receiving this message that you are not eligible to apply for PUA at this time.


https://www.uc.pa.gov/Pages/default.aspx

https://www.uc.pa.gov/Pages/default.aspx

https://www.uc.pa.gov/unemployment-benefits/file/Pages/Filing-for-PUA.aspx




RESOURCES Maddrey PLLC COVID-19 Resource Center


ASMP COVID-19 Hub

https://www.asmp.org/asmp-covid-19-info-hub/

Maddrey PLLC

Reach out… we’re here.

Lots of articles, webinars, and videos.

www.Maddrey PLLC.com







http://PLLC.com


LET ’ S TALK



Documents

UPDATES TO CARES ACT UNEMPLOYMENT / Q&A · 2020. 5. 1. · • “Changes to Florida Unemployment Due to COVID-19 • “In response to the coronavirus pandemic, Florida has changed