Earlier today, President Trump signed a $2 trillion coronavirus stimulus relief bill, known as the CARES (Coronavirus Aid, Relief, and Economic Security) Act, that will provide some economic relief for Americans in the coming months. Not only will most Americans be eligible to receive a one time payment of up to $1,200, this bill also expands unemployment coverage.
So, what could this new plan mean for you?
Additional $600 Weekly Unemployment Benefits
First, if you are receiving unemployment compensation during the pandemic, you could receive additional benefits. In addition to your state’s weekly benefits, the new stimulus package would allow you to collect an additional $600 per week in Federal unemployment compensation. For instance, if you are eligible to collect $500 from your state in unemployment benefits, you will now receive $1,100 when the plan takes effect.
The extra $600 unemployment payments are slated to start on or after April 1, 2020. Claimants can receive this weekly payment until as late as July 31, 2020.
It’s up to each individual state to decide how additional federal unemployment benefits will be paid. You may receive the additional payment lumped in with your normal unemployment check, or you may receive the money in two separate payments. Either way, both payments must be made weekly.
Expanded Eligibility and Extended Benefits
The CARES act would also expand the number of people eligible for unemployment. Workers who, in the past, were not previously eligible for unemployment may now be able to receive unemployment benefits.
This includes part-time workers, self-employed workers, and independent contractors, as long as their inability to work is related to the coronavirus pandemic. Individuals who recently started a job and were laid off due to the coronavirus will also be eligible to receive benefits now, even if they don’t have sufficient work history. These newly eligible individuals will also be able to receive the extra $600 in unemployment benefits.
This stimulus plan could also extend some out of work Americans’ unemployment benefits as well. Unemployed workers can usually receive up to 26 weeks of unemployment benefits, depending on the state. However, under the new stimulus plan, claimants can receive benefits for an additional 13 weeks, for up to 39 weeks of benefits.
