CAA : Continued Assistance for Unemployed Workers

CAA : Continued Assistance for Unemployed Workers

by Tracey Martin, CPA and Brian Boswell, CPA

With the signing of sweeping legislation on December 27, 2020, American workers will see an extension of federal unemployment insurance as millions of Americans are still without jobs due to the pandemic. With original federal benefits set to expire in December, up to twelve million people would have been impacted without this extension.
Under Title II: Assistance to Individuals, Families and Businesses, Subtitle A provides for the following changes in Unemployment Insurance (UI):

  • Extension of all pandemic unemployment insurance programs set to expire at the end of this month, including Pandemic Unemployment Compensation (PUA) and Pandemic Emergency Unemployment Compensation (PEUC).
  • Expands state benefits to include additional Pandemic Unemployment Compensation (PUC) of $300 per week for December 27, 2020 through March 14, 2021. The CARES Act originally provided for an additional $600 per week for all who are eligible for UI. This benefit expired July 31, 2020.
  • Expands the state’s time period for receiving UI to include Pandemic Emergency Unemployment Compensation (PEUC) for an additional 11 weeks through April 5, 2021. In most states, this provides a total of 50 weeks of UI. The CARES Act originally expanded coverage from 26 to 39 weeks.

This bill includes a new “return to work requirement” requiring states to provide one or more methods for employers to notify the state when an individual refuses “suitable work” (to be defined by states) or accept an offer of work without cause.

Unemployment Assistance for self-employed individuals under the Emergency Coronavirus Relief Act of 2020 has also been extended.

  • Provides Federal Supplemental unemployment insurance in the amount of $300 per week in addition to the amount provided by the State
  • Self-employed individuals who received unemployment assistance under the CARES Act are eligible for this relief
  • “Mixed Earner Unemployment Compensation” available for any person who received at least $5,000 of self-employment income in the most recent taxable year. This benefit is $100 per week in addition to the amount available to employees.
  • Individual must substantiate their status as self-employed within 21 days of filing a claim for assistance with the state unemployment agency
  • Applications may be submitted on or after January 31, 2021

We will continue to provide updates as they are released. As always, if you find yourself in need of the above benefits or have questions about eligibility, reach out to your BRC advisor.

Tracey Martin-4970

Tracey Flynn Martin Partner, CPA

Tracey has over 30 years of experience as a CPA and is a tax and consulting partner in our Wilmington office. She applies her knowledge and practical ideas to meet the needs of firm clients from both a business and tax perspective. Tracey leads our Firm’s CAS service line (Client Accounting Solutions – a […]