Covid Reduction Invoice expands and improves unemployment advantages

Ting Shen / Bloomberg via Getty Images

Unemployed would receive an additional 11 weeks of unemployment benefits and a $ 300 increase in aid per week under a Covid relief agreement reached on Sunday.

Certain self-employed and gig workers would receive an additional $ 100 a week, according to a document summarizing the legislation.

The 11-week deadline is less than the amount offered by a non-partisan package released earlier this month. This bill would have paid extended and improved services for 16 weeks until mid-April.

In total, the $ 900 billion compromise package, the result of frantic cliff-face negotiations for millions of workers by the end of the year, offers $ 120 billion in additional unemployment benefits.

According to the Department of Labor, more than 20 million Americans are collecting unemployment benefits.

$ 300 weekly improvement

PUA and PEUC expanded

The legislation would also expand two programs created by the CARES Act: Pandemic Unemployment Benefit, which pays benefits to self-employed, gig, freelance and part-time workers who are generally not eligible for state unemployment insurance; and Pandemic Emergency Unemployment Compensation, which pays extra weeks of benefits to people who have exhausted their government benefits.

$ 100 for self-employed

Some self-employed, giants, and other workers who have both wage (i.e. W-2) and self-employment income (i.e. 1099) are also entitled to an additional $ 100 per week.

Many of these people receive a low level of unemployment benefit due to the calculation of their benefits. States base their performance levels solely on the wages reported on their annual W-2 tax forms without taking into account the potentially much higher self-employment income.

The bill also gives individuals direct economic relief through stimulus checks of $ 600 for individuals earning up to $ 75,000 per year, $ 1,200 for couples earning up to $ 150,000, and an additional $ 600 for dependent children.

Comments are closed.