CARES Act: Unemployment Benefits

A 30-second read by the Baron Team:  The Coronavirus Aid, Relief, and Economic Security (CARES) Act provides additional unemployment insurance benefits for workers impacted by the Coronavirus pandemic.  Coverage has now been extended to cover more workers such as self-employed and independent contractors.  For the next four months, eligible unemployed workers will receive an additional $600 per week, above and beyond the standard benefits. 

According to the U.S. Department of Labor: federal law permits significant flexibility for states to amend their laws to provide unemployment insurance benefits in multiple scenarios related to COVID-19. For example, federal law provides states flexibility to pay benefits where:

1. An employer temporarily ceases operations due to COVID-19, preventing employees from coming to work
2. An individual is quarantined with the expectation of returning to work after the quarantine is over
3. An individual leaves employment due to a risk of exposure or infection or to care for a family member

In addition, federal law does not require an employee to quit in order to receive benefits due to the impact of COVID-19.

Learn how to file for unemployment insurance benefits at the U.S. Department of Labor website.

• Frequently Asked Questions for New Jersey residents can be found at: https://myunemployment.nj.gov/labor/myunemployment/assets/pdfs/NJWorkersFAQs.pdf
•  Department of Labor guidelines for New York State can be found at:
  https://labor.ny.gov/unemploymentassistance.shtm
•  Frequently Asked Questions for Florida residents can be found at:
  https://floridajobs.org/Reemployment-Assistance-Service-Center/reemployment-assistance/claimants/claimant-faqs-(new)

NOTE: Check with your state’s unemployment insurance program regarding the rules in your state.

For questions, please feel free to reach out to the Baron Team.

Disclosure: This document is a general communication being provided for informational purposes only. It is educational in nature and not designed to be advice or a recommendation for any specific investment product, strategy, plan feature or other purpose in any jurisdiction.  Past performance is no guarantee of future results.  Every investment strategy has the potential for profit or loss. This material is not intended to be relied upon as a forecast, research, tax or investment advice.  Please consult your tax planning professional for personal tax advice.