How long will enhanced unemployment benefits be available?

The American Rescue Plan extends all of the emergency unemployment programs from the CARES Act and the Families First Act until September 6. This extension continues coverage for self-employed workers and those in non-traditional employment (Pandemic Unemployment Assistance) and provides additional weeks of coverage for workers who have exhausted regular unemployment benefits. The weekly supplement (Federal Pandemic Unemployment Compensation) amount will be $300 per week until September 6. Each state administers its own unemployment insurance program, so unemployed workers should continue to apply for and receive these benefits through their state unemployment office

 

How much can I get from Unemployment Insurance?

The exact amount you can receive through Unemployment depends on your previous earnings. The weekly $300 supplement will be available until September 6. Individuals with income from self-employment receiving state-based unemployment may be eligible for an additional $100 supplemental payment in addition to the $300 per week benefit.

What if I’m not eligible for traditional Unemployment Insurance?

The American Rescue Plan Act continues the Pandemic Unemployment Assistance program (PUA), which extends unemployment insurance to cover individuals who are not traditionally covered by state-based unemployment, including the self-employed, gig-workers (such as an Uber driver), independent contractors, and workers with irregular work history. The American Rescue Plan Act provides all of these individuals with a total of 79 weeks of benefits. This program will run through September 6.

 

What if I’ve been out of work because of COVID-19 for several weeks already?

Under the CARES Act, individuals who have exhausted the weeks of unemployment available through state-based unemployment were eligible for an additional 13 weeks of benefits through the end of 2020. The recent COVID-19 assistance legislation ensures that you can claim extended benefits through September 6. These benefits will be federally funded, but you will still receive them through your state.

 

Are unemployment benefits taxed?

Yes, unemployment benefits are taxed by the federal government and the State of Michigan. However, the American Rescue Plan Act creates a $10,200 tax exclusion for unemployment compensation income for tax year 2020 for households with incomes under $150,000.

 

Is there a waiting period? 

The CARES Act included incentives for states to waive the waiting week between applying for unemployment compensation and receiving it. Contact the unemployment office in the state where you worked to determine whether there will be a waiting week.

 

How do I file for unemployment insurance?

Apply for unemployment benefits online at Michigan.gov/UIA .