During this economic crisis, the Federal Government is helping people who have lost their jobs and need unemployment insurance in two ways: It has extended the period of unemployment benefits 20 weeks beyond the regular state unemployment benefits. In states with high levels of unemployment, an additional 13 weeks beyond the 20 weeks is available. The program itself has been extended until May 31, 2010. In addition, people will start receiving an extra $25 supplement . Most states will have included the supplement at the beginning of March. If you do not receive your supplement in March, it will be applied retroactively when it does go into effect. The details taken from the Department of Labor site are below.
Government Fact Sheet
Emergency Unemployment Compensation, 2008 (EUC08) — Program Extension
The EUC08 program, created on June 30, 2008, provides up to 20 weeks of federally-funded benefits to eligible unemployed workers who have collected all their regular state unemployment benefits. An additional 13 weeks of EUC are available in states with high levels of unemployment.
The EUC08 program was scheduled to expire on Aug. 27, 2009. The recovery legislation, Public Law Number 111-5, which was enacted on Feb. 17, 2009, extends the expiration date of the EUC08 program to May 31, 2010.
The period during which an individual may establish eligibility for EUC08 is extended from March 31, 2009, to the week of unemployment ending on or before Dec. 31, 2009, and the "phase-out" or expiration date of the program is extended from Aug. 27, 2009 to May 31, 2010.
The recovery legislation does not provide additional weeks of benefits for individuals who have or will exhaust their EUC08 benefits.
Federal Additional Compensation (FAC)
The recovery legislation also created a new FAC program that provides a $25 supplement that is payable to individuals receiving state unemployment compensation (UC) or Federal UC. The $25 supplement does not apply to state-financed Additional Compensation programs.
All 50 states, the District of Columbia, the Commonwealth of Puerto Rico and the U.S. Virgin Islands executed agreements with the secretary of labor to administer this new program on behalf of the federal government on or before Feb. 21, 2009; therefore, the program is effective Feb. 22, 2009, in all states/jurisdictions.
States are modifying their automated benefit payment systems to implement FAC. Many states will begin to make payments during the week of March 1, 2009, for weeks of unemployment effective Feb. 22, 2009. However, due to the complexity of changing automated systems, some states have advised that they may implement later, making payments retroactively.
States will calculate the individual's weekly benefit amount and make any adjustments in accordance with state law to account for any earnings, and any other deductions (for example, severance and retirement/pension payments).
The $25 supplement is taxable. Therefore, states will include the total benefits received including the $25 increase(s) in issuing a 1099G to claimants.
The $25 supplement/payments will be paid from federal general revenues. States will receive administrative costs associated with implementing the $25 add-on.
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