What Does the CARES Act Mean for My Business?

Established at the end of the March, the Coronavirus Aid, Relief, and Economic Security (CARES) Act provides aid to families around the United States facing economic hardships due to the pandemic. While the stimulus package contains many relief aspects, there are certain unemployment insurance pieces relevant to your business.

Pandemic Unemployment Assistance

In order to offer support for all workers, Pandemic Unemployment Assistance (PUA) opens up UI to workers who previously wouldn’t qualify, like those who are self-employed or who work part-time. To receive PUA, the workers must show they are able to work except under the current conditions.

Federal Pandemic Unemployment Compensation

Each state has its own rates and maximum amounts for weekly UI benefits, but the Federal Pandemic Unemployment Compensation (FPUC) provides an additional $600 in weekly federal benefits to those who file. It is not affected by whether or not an employee has maxed out their own state’s weekly amounts.

Pandemic Emergency Unemployment Compensation

The Pandemic Emergency Unemployment Compensation (PEUC) program provides an additional 13 weeks of UI to those who have already reached their limits. Flexibility from states is required in order to meet the PEUC requirements related to whether or not a worker is seeking employment and if that ability is impacted by COVID-19.

Part of the Stimulus Package Goes Toward UI

With these increased benefits comes increased funding. The expanded unemployment insurance options bring with it a $250 billion credit into the system from the federal government.

The CARES Act includes other programs, including tax credits and forgivable loans. The goal is to assist both businesses and employees as they navigate through this season. Certain aspects are determined by specific information, including business size.

Experience a Higher Level of Control with Unemployment Tracker

Right now, it might feel like you have very little control. The world keeps responding to the virus and all you can do is watch and follow the requirements for your company. While you don’t have the control you’d like, you can look toward the future and gain more control over your UI costs. No matter your need or budget, Unemployment Tracker has a full range of solutions designed to help you. Request a live demo today to learn more.