Some Workers Will Get $400 Weekly Unemployment Benefit, But Eligibility is Still Up for Question
Some qualified workers will receive a $400 weekly unemployment benefit under the new relief bill. It comprises $300 from the federal government and another $100 from the states if they choose to provide it.
The newly passed relief bill includes a $300 federal weekly unemployment benefit, and on top of that is another $100 that some workers can also get. That means a qualified unemployed individual can receive a total amount of $400 weekly unemployment benefit.
$400 Weekly Unemployment Benefit
Congress recently passed and approved a new $900 billion coronavirus relief bill that includes direct stimulus checks, unemployment benefits, and other financial aids. After weeks of disagreements, both parties have finally reached a deal.
CNBC reports that on top of the $300 federal weekly unemployment benefit is an additional $100 boost for some workers if their state chooses to supply it.
Based on the relief bill, this is intended to support workers who have both wage income, such as from a W-2 job, and self-employment or independent contractor earnings, like from a 1099 role, but whose benefit calculation doesn't take their self-employment earnings into account.
According to experts, these are individuals who may be seeing an artificially low unemployment benefit because their payments are based solely on wages reported on their annual W-2 tax forms instead of self-employment income, which may be higher.
Millions of qualified Americans and residents in the country are expected to receive the $300 federal weekly unemployment benefit and $100 boost starting Dec. 27.
However, the federal payment might be delayed due to the difficulties of programming new benefits into computer systems and administering them by state.
Who Qualifies for $100?
Not everyone is qualified for an additional $100. Only those who earned at least $5,000 in self-employment income in 2019 will be eligible for the extra $100 per week starting Dec. 27 until Mar. 14, 2021. That means this benefit will last for 11 weeks.
However, one of the problems that might hinder the extra $100 is that it is still unclear how states will determine a person's eligibility and administer the new benefit. These changes could be a factor why unemployment benefits might be delayed.
A senior policy analyst at the National Employment Law Project, Michele Evermore, said: "It's highly unlikely states will be able to proactively identify people newly eligible for this benefit. Workers affected by this will definitely need to reach out to their state agencies to find out the process."
Meanwhile, the Washington Center for Equitable Growth, which cited data from the Bureau of Labor Statistics and research conducted by academics at Harvard University and Princeton University, also noted that there are between 10.5 to 15 million independent contractors in the country.
Moreover, the state unemployment offices are now waiting for federal guidance to determine how to administer new residents' benefits.
Evermore added that it might take a month before this latest benefit can be received because "states will have to find a way to move information across systems in a way they haven't had to in the past."
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