Federal Unemployment Benefits Extended
The U.S. Senate this week passed a $10 billion short-term extension of unemployment benefits and President Obama quickly signed the bill into law.
There are no additional weeks of federal emergency unemployment compensation (EUC) in the extension, but the legislation extends by about a month both the deadline for applying for aid and the period in which individuals may receive unemployment aid.
Under the new extension: Individuals may now file applications for Federal Emergency Unemployment Compensation (EUC) up to April 5, 2010 (extended from Feb. 28), and the period during which individuals may claim and be paid EUC is extended from ending July 31 to September 4, 2010.
The period in which individuals may qualify for the Federal Additional Compensation (FAC), the extra $25 per weekly benefit amount on state and federal unemployment compensation, is extended from ending before Feb. 28, 2010, to April 5 with payment provided for weeks during the phaseout ending Oct. 5, 2010, instead of August 31, 2010.
100% federal reimbursement for weeks of regular federal extended benefit payments is extended from ending Feb. 28, 2010 to April 5, 2010, with the state option to continue the extended period for payments from July 31 to Sept. 4, 2010.
The additional spending for the EUC payments and the FAC payments will come from general revenue. However, the 100% reimbursement for regular EB payments (instead of the usual 50%) will be charged to the Federal Emergency Unemployment Compensation Account that is funded with FUTA taxes paid by employers.
The additional spending will add to the federal deficit, and in the case of the 100% reimbursement funding will add to the deficit in the EUCA account.
For more information, contact Kia Murrell at 860.244.1931 or email@example.com..
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