Maryland Unemployment

The size and scope of unemployment benefits is expanded under the CARES Act. It includes relief for workers who are self-employed, as well as independent contractors. These changes are temporary.

Provides $250 billion to expand unemployment benefits
Makes sure self-employed and independent contractors, like Uber drivers and gig workers, can receive unemployment during the public health emergency. The bill also includes support to state and local governments and nonprofits so they can pay unemployment to their employees
Makes benefits more generous by adding a $600/week across-the-board payment increase through the end of July. In addition, for those who need it, the bill provides an additional 13 weeks of benefits beyond what states typically allow

A TEMPORARY BOOST TO UNEMPLOYMENT COMPENSATION

The CARES Act temporarily supplements UI benefit amounts and extends the duration of those benefits. The CARES Act creates three new UI programs: Pandemic Unemployment Compensation, Pandemic Emergency Unemployment Compensation, and Pandemic Unemployment Assistance. All three programs are fully federally funded.

Pandemic Unemployment Compensation (PUC)

$600 per week on top of current regular UI benefits.
Effective March 29, 2020 through July 31, 2020.

From the date the bill is signed through July 31, 2020, all regular UI and Pandemic Unemployment Assistance claimants will receive their usual calculated benefit plus an additional $600 per week in compensation. PUC is a flat amount to those on UI, including those who are receiving a partial unemployment benefit check. PUC also goes to those receiving the new Pandemic Unemployment Assistance program described below. PUC may be paid either with the regular UI payment or at a separate time, but it must be paid on a weekly basis.

PUC is not income for purposes of eligibility for either Medicaid or CHIP.

Pandemic Emergency Unemployment Compensation (PEUC)

13 additional weeks of UI benefits, plus $600 FPUC.
Effective March 29, 2020 through Dec. 31, 2020.

The CARES Act also provides an additional 13 weeks of state UI benefits, which will become available after someone exhausts all their regular state UI benefits. All but eight states offer 26 weeks of UI benefits.[1] To receive PEUC, workers must be actively engaged in searching for work. The bill explicitly provides, however, that “a State shall provide flexibility in meeting such [work search] requirements in case of individuals unable to search for work because of COVID-19, including because of illness, quarantine, or movement restriction.”

EMERGENCY ASSISTANCE TO REACH WORKERS TYPICALLY LEFT OUT

Pandemic Unemployment Assistance (PUA)

Individuals who are not usually eligible for regular UI and who cannot work due to COVID-19 are eligible for a maximum of 39 weeks of benefits, which includes $600 Federal Pandemic Unemployment Compensation (FPUC).
Effective January 27, 2020 through Dec. 31, 2020.

Pandemic Unemployment Assistance (PUA) provides emergency unemployment assistance to workers who are left out of regular state UI or who have exhausted their state UI benefits (including any Extended Benefits that might become available in the future). Up to 39 weeks of PUA are available to workers who are immediately eligible to receive PUA. The program will expire on December 31, 2020, unless otherwise extended. Importantly, this program will provide income support to many workers who are shut out of the state UI systems in this country. In fact, workers who are eligible for state UI are not eligible for the PUA program. Those eligible for PUA include self-employed workers, including independent contractors, freelancers, workers seeking part-time work, and workers who do not have a long-enough work history to qualify for state UI benefits.

Applicants will need to provide self-certification that they are (1) partially or fully unemployed, OR (2) unable and unavailable to work because of one of the following circumstances:

Diagnosis of COVID-19 or is experiencing the systems and seeking a medical diagnosis
Member of household has COVID-19
Individual is providing care for a family member or member of household who has been diagnosed with COVID-19
Child or other person in household for whom the individual is the primary caregiver is unable to attend school or other facility because of COVID-19 and such attendance is necessary for that individual to attend work
Individual is unable to reach place of employment because of mandatory quarantine
Individual has been advised by a medical professional to self-quarantine due to COVID-19 concerns
Individual was scheduled to start a job and doesn’t have a job or unable to reach job due to COVID-19
Individual has become the primary source of income or major support for household due to head of household dying due to COVID-19
Individual has quit job as a direct result of COVID-19
Place of business is closed due to COVID-19
Individual is self-employed, is seeking part-time employment, doesn’t have sufficient work history, or otherwise doesn’t qualify for regular unemployment or extended benefits
This does not include individuals who can telework with pay or who are receiving paid sick leave or other leave benefits due to other provisions in COVID-19 relief.

Workers are not eligible for PUA if they can either telework with pay or are receiving paid sick days or paid leave. Workers must be authorized to work to be eligible for PUA, meaning that undocumented workers will not qualify. The PUA program will run from January 27, 2020 through December 31, 2020. Workers will be eligible for retroactive benefits and can access benefits for a maximum of 39 weeks, including any weeks for which the person received regular UI.

HOW TO APPLY FOR BENEFITS

The Division of Unemployment Insurance’s website and call centers are currently experiencing an unprecedented volume of users due to COVID-19. This may result in long wait times.

Please be assured that Maryland does not have a waiting week like many other states do. No matter when or how they file, Marylanders become eligible for benefits starting after the day after they separated from employment. If you are eligible, you will be paid for all benefits due.

Updated Process for Filing A Regular Claim (W-2 employees)

To provide claimants with an efficient and hassle-free filing process, we are encouraging claimants to file according to a new system.

To file an initial regular unemployment claim online or through our call centers, please file your claim according to your last name as detailed below:

If your last name starts with A - F, file your claim on Monday.
If your last name starts with G - N, file your claim on Tuesday.
If your last name starts with O - Z, file your claim on Wednesday.
Claim filing is open to all last names by phone on Thursday and Friday and online Thursday through Sunday.
Filing later in the week will not delay your payments or affect the date of your claim.

We strongly encourage you to utilize the online application to file your claim. This online application is available 24/7, but we are strongly encouraging Marylanders to file during non-peak hours, like early in the morning and late in the evening (8:00 p.m. - 7:00 a.m.), for faster processing speeds.

Current telephone hours are from Monday through Friday, 7:30 am to 3:30 pm. Claims Centers telephone lines are open from 7 a.m. to 6 p.m., Monday through Friday, and on Saturdays from 8 a.m. to 12 p.m. To contact a Claim Center, call 410-949-0022.

If you are having difficulty placing a call or accessing the website, claimants can e-mail questions to ui.inquiry@maryland.gov. Employers can e-mail questions to dluiemployerassistance-labor@maryland.gov or contact 410-767-2412. Claims may only be filed by phone or online; claims cannot be filed by email.

Did you previously apply for benefits through the old NetClaims application prior to 4/24/2020? If so, you will need to activate your new BEACON account by clicking Account Activation. When you activate your account, all of your claimant account information will be available in the new application. To activate your account, you will need to verify your identity with your social security number and PIN. If you cannot remember your PIN, you will be able to authenticate your identity with other information. If you have any questions or issues with the application, please contact a Claim Center at (410) 949-0022.

Updated Process for Filing A Self-Employed Claim (non W-2 earners)

Note: The following information goes in order of the application so please read through it while you're going through the application.

Go to https://beacon.labor.maryland.gov/beacon/claimant-page.html

Claim Dates - Section 2

The Pandemic Unemployment Assistance (PUA) is eligible for a maximum of 39 weeks and retroactive back to January 27, 2020 or the date on which you were no longer able to provide goods and/or services through your own business, which ever is later.

The first option for a claim date is Sunday, April 26. However, if you are self-employed and you had to stop working before 4/26, enter the date that you stopped working. The effective date MUST be a Sunday. Also - be sure to use the little calendar and don't type the date in manually - otherwise you'll end up with an error.

If your "effective date" is before April 1, 2020, you will get the following message:

Your requested effective begin date falls under a previous quarter. You may continue with the Unemployment Insurance Benefit application by clicking ‘Next’. However, an official determination of benefit entitlement will be mailed to you only after your application is processed.

This is okay. Keep moving.

Initial Questions - Section 4

After you enter your address, the next section is Initial Questions. This section goes back to October 2018. If your business started AFTER 10/2018, you may need to check more than one box. Also, once you choose the self employed box, an additional box will populate for "Which one?" (see below).

If you are a single member LLC - choose the LLC option.
If you are a sole proprietor and do NOT have an LLC - choose the sole proprietor option.
If you are an independent contractor for ONLY ONE COMPANY - choose the independent contractor option
If you are a partner in a partnership (whether it's an LLC or not) - choose the partner option.

If you are self-employed ONLY and do NOT have any other type of income, do NOT check any of the other boxes.

General Information - Section 5

Payment Method - Benefits Debit Card - Disclosure Agreement

You will need to click on the blue hyperlink that says Disclosure and check the box that says you agree. The details of that disclosure are provided below:

In order to provide benefit payments in a secure and quick manner, the State of Maryland issues unemployment insurance benefit payments with the Maryland Unemployment Insurance (UI) Benefits Debit Card. You do not have to receive your payments on this benefits card. If you wish to receive your benefit payments by having a paper check mailed to your address instead, please call:

410-949-0022 (outside of Maryland or within the Baltimore-metro calling area); Otherwise, call 1-800-827-4839 to request this option.

This Visa® debit card is issued through Bank of America. There is no activation fee or purchase fee to use the Bank of America Visa® debit card. Here is some additional information on the disclosures: http://www.dllr.maryland.gov/employment/uichoiceen.pdf

You will also need to click the button that says "pay my benefits via an unemployment debit card" IF you want to continue with the online process. Otherwise, you will not be able to move any further until you call the number above.

If you have to log out and back in - the system will NOT remember your choice for checking the disclosure box. You WILL have to check it again.

Tax Withholding - Unemployment benefits are taxable income under both Federal and State law. You have the option to have taxes withheld or not. You'll be able to choose from the following options:

Both Federal income tax at the rate of 10% and Maryland State income tax at the rate of 7%
Federal income tax at the rate of 10%
Maryland State income tax at the rate of 7%
I choose not to have any income tax withheld at this time

Our recommendation is CHOOSE TO HAVE THE TAX WITHHELD NOW so that you don't have to try to make it up next spring when you file your 2020 taxes.

Occupation Information - "Enter your Customary Occupation" - Type in what you DO for work, do NOT type in "Owner". For example, I typed in "Accountant". The click the search button and choose the closest job title/description that matches what you do.

Accountant actually had TWO options - the first one being Accountants "who analyze financial information" and the second one being Accountants and Auditors "who examine, analyze and interpret accounting records to give advice or audit statements prepared by others". I chose the first since we don't do audits.

If you are self-employed only, the system will SKIP sections 6 and 7.

Eligibility Information - Section 8

Several of the questions asked here are for EMPLOYEES who work for other people. You still have to answer the questions as best you can, even if they don't apply. We've taken all the questions and added comments and helpful tips to answer the questions in a Google document.

Here are ALL the questions asked. Please make sure you go through this document while you're answering the questions.

Income Tax - Section 9

Your income information for the most recently completed tax year (this means 2019) is needed to determine your weekly Pandemic Unemployment Assistance benefits amounts.

If you have not yet filed your Federal Income Tax Return, or if you do not have access to your tax records, estimate the required amounts when completing this application.

NOTE: Do NOT include spouse’s income or loss in any reported amounts.

You are required to submit proof of income within 21 days from the date you file your application. You may be determined eligible to receive only the minimum weekly assistance allowance until income documentation is submitted. If no proof is received within 21 days, you may be ineligible or over paid for any benefits received.
If you are unable to submit proof of income, you must at least submit documentation that proves you were self-employed, or scheduled to begin work that was prevented by the pandemic.

*1. Did you file a tax return for the previous tax year?:

Yes
I was not required to file a tax return
I am required, but have yet to file a tax return

*2. Did you or will you file jointly on your previous year's tax return?: (only if you answered yes above)

*3. How will you be providing this information from the most recently completed tax year:

I will estimate
I will use information directly from my tax forms

If you choose ESTIMATE:

For the most recent completed tax year, my estimated total earnings: ___________

If you choose ACTUAL:

Select the applicable option from the drop down menu. You can choose from Schedule C, 1099, Accounts Receivable, K-1 Schedule, Net Profit or Loss, Schedule E, W-2s, Other proof of income and more.

There is no place to enter an amount if you choose ACTUAL. The documents you upload will be reviewed by the DOL before payments are paid out. Benefits will be based on your NET profit, not gross earnings. This was confirmed by the DOL on 4/29/2020.

Review and Submit - Section 10

Click all of the tabs in the middle of the screen to review the information. Certify that the information is correct and true and click Next.

Confirmation

PRINT YOUR CONFIRMATION SHEET.

Below is what your dashboard will look like. For self-employed persons the Weekly Benefit Amount for PUA benefits is currently $176 / week. This is a default amount and your benefits *may* be higher once the application is reviewed. We've been told this amount is the minimum that self-employed individuals will receive and that it has been calculated as one-half the average weekly benefits amount for Maryland.

See more information below from the DOL:

How much money am I eligible to receive, if I qualify for PUA or PEUC?

If you meet the eligibility requirements for PUA or PEUC, the Division will calculate your Weekly Benefit Amount (WBA) based on the income that you earned in the past. PUA and PEUC will generally replace approximately 50% of your previous income. If you are eligible for either program, you will also automatically receive an additional $600 per week for the weeks ending Saturday, April 4th to Saturday, July 25th.

Once I file my claim for PUA/PEUC benefits, what happens next?

The Division will review your application. If additional information or documentation is necessary, the Division will request it from you. You will receive notice of the request through your preferred method of contact (e-mail, text message, or postal mail). Your BEACON One-Stop portal will also contain the notice. Once the Division is able to completely adjudicate your claim, we will notify you through your preferred method and your portal.

Click to view the open Action Items.

"PUA - Proof of employment and wages"

Right now we believe this is the documentation listed on question 4 of the DOL's FAQ. I am self-employed, an independent contractor, or a gig worker. What documentation do I need to apply for UI benefits?

- - Acceptable documentation for proof of employment or self-employment can include, but is not limited to:
    - - Business Registration or Charter
      - Business Formation Papers
      - Independent Contractor Agreement
      - Summary of Quarterly Payments
      - Profit and Loss Statement
      - Accounts Receivable Statement
      - Evidence of your 2019 Income (e.g. 1099, Schedule K-1, Schedule C)

You may have already uploaded some of this information during Section 9, but enter it again here, just to be safe.

Weekly Certification - CLICK HERE TO BE TAKEN TO THE INSTRUCTION PAGE - updated 4/29/2020

NEXT STEPS before leaving the portal

Download your complete application - CLICK HERE TO BE TAKEN TO THE INSTRUCTIONS PAGE

What to Expect Next

Once your benefits are approved, you will receive a notice entitled "Notice of First Benefit Payment Approval and Mailing of your Bank of America Debit Card". You will then receive your debit card within 7-10 days. The card will arrive in a WHITE envelope with the State of Maryland logo and a Tennessee return address in the upper left-hand corner. Once you receive your card, you may access your first payment. If you continue to meet all of the eligibility requirements of the Maryland UI Law and file timely weekly claim certifications, you will have a safe and convenient way to receive and access your Maryland UI benefits

You must file weekly claim certifications in order to receive payment for the weeks that you continue to be unemployed. You will have to log back on to the portal each week. Sundays and Mondays have been set aside specifically for weekly certs only, though you can file any time between Sunday and Friday at 5pm. If you do not file your weekly claim on time, your benefits may be denied or delayed.

If you need assistance filing the weekly certifications, be sure to reference the instruction page above.

Need to Update your Tax Withholding?

From inside the portal, click Benefit Payment from the left side of the screen. Then click Payment Method and Tax Withholding options. You can choose the Tax Withholding tab and change your answer.

How can we help?

Please feel free to schedule a time to talk to us by clicking one of the options below.

Current Clients:

Quick Question Call (20 minutes)

One Hour Call

Non-Clients:

Discovery Call (one hour)

Interested in becoming a client?

Free Consultation (20 minutes)

Don't forget to follow us on Facebook for the latest updates.

Weekly Claim Certification(s)

If you were laid off or had your hours reduced as a result of the COVID-19 pandemic and were approved to receive unemployment insurance benefits, you must file a weekly claim certification. Your certification needs to be filed each week that you are unemployed in order for you to receive your benefit payment. There are two options to file your weekly claim certification:

Online at https://beacon.labor.maryland.gov/beacon/claimant-page.html - click "File a Weekly Claim Certification"
Or you may call the TeleCert by calling 410-949-0022.

The Maryland Division of Unemployment Insurance is aware that many claimants have experienced technical issues that caused them to miss the window to file their weekly requests for benefit payment. Please be assured that this will NOT negatively impact the ultimate payment of the full benefit amount for which you are eligible.

Weekly Certification - CLICK HERE TO BE TAKEN TO THE INSTRUCTION PAGE - updated 4/29/2020

For more information, you can also check out the DOL's FAQ for How to File Weekly Claim Certifications.

CARES Act UI BENEFIT PROVISIONS FAQ - including self-employed individuals

Who is covered by the new law?

The CARES Act creates three new unemployment insurance (UI) programs. These cover individuals:

who are not eligible for traditional UI benefits including the self-employed, independent contractors, and gig economy workers;
who are currently receiving regular UI; and,
who have recently exhausted their regular UI.

How much will I be eligible for?

Benefit amounts will be calculated based on the income that you received over the prior 18 months. Those who receive benefits will also receive an additional $600 per week.

Are gig workers, freelancers, and independent contractors covered in the bill?

Yes. There is a special program which provides benefits to those who are not traditionally eligible for unemployment insurance, which includes gig workers (Uber, Lyft, AirBnB hosts, etc.), freelancers, and independent contractors. This special program expires on December 31, 2020.

I am Self-Employed, but my business is no longer providing me with any income. Am I eligible for benefits? If so, when should I apply?

Yes, self-employed people are eligible for under the new law. Self-employed workers are also eligible for the additional $600 weekly amount.

What if I am a part-time worker who lost my job because of a coronavirus reason? Am I still eligible?

Yes. Part-time workers are eligible for partial benefits, which are calculated by taking into consideration your recent wages. You will also be eligible for the additional $600 weekly benefit.

What if I have Covid-19 or need to care for a family member who has Covid-19?

If you have received a diagnosis, are experiencing symptoms or are seeking a diagnosis — and you are unemployed, partly unemployed or cannot work as a result — you are eligible to receive unemployment insurance benefits. If you need to care for a member of your family or household who has received a diagnosis, you are still eligible to receive unemployment insurance benefits.

What if my child’s school or daycare shut down?

If you rely on a school, day care, or another facility, elderly parent, or another household member to care for a child so that you can work — and that facility has been shut down because of coronavirus — you are eligible to receive unemployment insurance benefits.

What if I have been advised by a health care provider to quarantine myself because of exposure to coronavirus? And what about broader orders to stay home?

If you must self-quarantine due to possible exposure to the coronavirus, the CARES Act allows you to receive unemployment insurance benefits that traditionally you would not receive.

I was about to start a new job and now cannot get there because of an outbreak.

Under the CARES Act, you are now eligible for unemployment insurance benefits. You are also eligible if you were immediately laid off from a new job and do not have a sufficient work history to qualify for benefits under traditional circumstances.

Is anyone explicitly excluded from receiving assistance under the law?

Workers who are able to perform their jobs through paid telework, and those receiving paid sick leave or paid family leave are not eligible.

How long will my benefit payments last?

Maryland provides 26 weeks of benefits. The CARES Act provides all eligible workers with an additional 13 weeks. Eligible claimants in Maryland may receive a maximum of 39 weeks of unemployment insurance benefits.

I am already receiving unemployment benefits. Will I receive any assistance under this law?

Even if you are already receiving unemployment benefits for reasons unrelated to the coronavirus, your Maryland unemployment insurance benefits will be extended by 13 weeks. You will also be eligible for an extra $600 weekly benefit.

I exhausted my benefits some weeks/months ago. Can I get the 13 weeks of extended benefits? If yes, will I also get the extra $600/week?

If you exhausted your regular UI benefits, there are provisions under the CARES Act that will provide you with an additional 13 weeks of benefits. Apply once the CARES Act application process is announced. You will also be eligible for the additional $600 weekly benefit amount.

Will these benefits disqualify me from any other programs?

It is possible that benefits provided under this new program could affect your eligibility for other programs. For example, the additional $600 benefit counts as income when determining eligibility for means-tested programs, except for Medicaid and the Children’s Health Insurance Program, known as CHIP.

How long will I need to wait to receive benefits?

Maryland does not have a waiting week, unlike many other states, so you are eligible to file the day after you are separated from employment. Due to the current and expected claim load, the Division of Unemployment Insurance cannot provide a definite timeline on benefit delivery. Your patience is greatly appreciated during this pandemic.

EMPLOYEE FAQ

If my employer temporarily ceases operations due to COVID-19, preventing me from coming to work, am I eligible for benefits?

If you are laid off temporarily due to a business shutdown as a result of COVID-19, the Division of Unemployment Insurance recommends that you file a claim for unemployment insurance. After you file a claim for unemployment insurance benefits, the Division of Unemployment Insurance will determine whether you qualify to receive unemployment insurance benefits. You can apply for unemployment insurance benefits online or by phone between 7:30 a.m. - 3:30 p.m., Monday through Friday, at 410-949-0022 (within the Baltimore-metro area and out-of-state) or 800-827-4839 (from within Maryland).

If I am quarantined due to COVID-19 with the expectation of returning to work after the quarantine is over, am I eligible for benefits?

The first and best option for employees who need to miss work due to illness is to use their employer-paid time off. The Maryland Healthy Working Families Act requires employers with 15 or more employees to provide paid sick and safe leave for certain employees. Maryland employers who employ 14 or fewer employees are required to provide unpaid sick and safe leave for certain employees.

“Unemployment” includes a reduction of both work hours and earnings. An individual receiving paid sick leave or paid family leave is still receiving pay and would generally not be considered “unemployed” for purposes of collecting unemployment insurance benefits.

If you are currently quarantined by a medical professional or under government direction, and your employer has instructed you not to return to work until the quarantine is over and has not provided the option to telework, the Division of Unemployment Insurance recommends that you file a claim for unemployment insurance. After you file a claim, the Division of Unemployment Insurance will determine whether you qualify to receive unemployment insurance benefits. You can apply for unemployment insurance benefits online or by phone between 7:30 a.m. - 3:30 p.m., Monday through Friday at 410-949-0022 (within the Baltimore-metro area and out-of-state) or 800-827-4839 (from within Maryland).

If I decide to leave my employment due to a reasonable risk of exposure or infection of COVID-19 or to care for a family member due to COVID-19, am I eligible for benefits?

If you are not exhibiting any symptoms of coronavirus, COVID-19, and you decide to leave your employment, the Division of Unemployment Insurance recommends that you file a claim for unemployment insurance. You may be determined to be eligible for benefits if the circumstances of your job separation are allowable under Maryland’s provisions for good cause and/or just circumstances for voluntarily leaving work, Section 8-1001 of Maryland Unemployment Insurance Law.

If I need to take time off work because I am sick, but I have not been quarantined by a medical professional or under government direction, will I be eligible for unemployment insurance benefits?

If you are not eligible for employer paid time off or your paid time off has been exhausted, the Division of Unemployment Insurance recommends that you file a claim for unemployment insurance. You may be determined to be eligible for benefits if you have taken time off of work and expect to return work with the same employer in the future.

If an employer lays off employees due to the loss of production caused by COVID-19, will the employees be eligible for unemployment insurance benefits?

Maryland unemployment benefits are available to individuals who are unemployed through no fault of their own. If an employer lays off employees due to a loss of production as a direct result of COVID-19, individuals may be eligible for unemployment benefits if they meet certain criteria. It is recommended that you file a claim for unemployment insurance.

If my employer reduces my hours as a result of COVID-19, will I be eligible for unemployment insurance benefits?

If your employer has reduced your normal work hours as a result of COVID-19, you may be eligible for partial benefits.

What if my employer goes out of business as a result of COVID-19?

If your employer goes out of business as a result of COVID-19, the Division of Unemployment Insurance recommends that you file a claim for unemployment insurance, as you are considered to be unemployed through no fault of your own.

Am I required to search for work during this state of emergency?

Due to the state of emergency proclaimed by the Governor of Maryland, and the labor conditions across the state of Maryland, the Secretary of the Maryland Department of Labor (Labor) has ordered, effective March 20th, 2020, a temporary exemption from the work search requirement for individuals receiving unemployment insurance benefits.

Labor will exempt all current and new unemployment insurance benefit recipients from the requirement to actively seek work for a ten (10) week period. The temporary exemption from the work search requirement will begin the week ending on March 20th, 2020.

Claimants who are selected to participate in a federally-required reemployment workshop during this period will be required to complete a one-on-one telephone session with a reemployment facilitator. However, claimants will not be required to complete the activities detailed in the IRP until the state of emergency has been lifted.

EMPLOYER FAQ

If an employee or former employee receives unemployment benefits as a result of a coronavirus-related business shutdown, will the employer’s unemployment insurance taxes increase?

No employer will see an increase in their tax rate for 2020 due to the coronavirus, COVID-19. Unemployment insurance benefits are proportionately charged to each employer based on the employee’s earnings in their base period. Contributory employers may see an increase in their 2021 tax rate as a result of benefits paid due to COVID-19; however, tax rates are calculated based on benefits that have been charged to the employer account over the prior three (3) years, ending on June 30. Thus, any benefits paid due to coronavirus, COVID-19, from March to June will comprise four (4) months of the 36 months used to calculate the 2021 tax rate for employers.

In the event that a process for employers to apply for a waiver of charging of any benefits paid due to coronavirus, COVID-19, additional information will be provided outlining the requirements. Waivers will be reviewed on a case-by-case basis and approved as the law allows.

Reimbursing employers are charged dollar for dollar for benefits paid to their former employees.

What this means is that you, as the employer, may see an increase in your unemployment insurance rate for the 2021 year AND the 2022 year since the cutoff for the benefits calculation is June 30. That is, if this situation extends beyond June 30 of this year.