• Erica Chan

7/1 EDD News Release/Update (FED-ED)

Updated: Aug 14

Full news release here


UI benefits now available for LONG-TERM unemployed


Federal-State Extended Duration benefits program (FED-ED) only becomes available during times of prolonged periods of unemployment. It provides up to 13 additional weeks of benefits and 50% from State's UI Trust Fund and 50% from federal funds.


Under AB103, the state now meets federal trigger standards to maximize support for unemployed from the federal government


Summary

For PUA Claimants:

  • PUA Claimants will have an additional 7 weeks of benefits (totaling to 46 weeks instead of 39 weeks)

  • These additional weeks are fully federally-funded, saving California's UI Trust Fund in addition to providing some tax relief to employer

For Regular UI Claimants:

  • Regular UI Claimants will have an additional 20 weeks through FED-ED after PEUC ends

  • EDD will implement FED-ED programming for first 13 weeks (out of 20) starting on July 1st, in time for some claimants who may be running out of PEUC. Programming for remaining 7 weeks will follow shortly after

  • Summary: individuals can potentially receive up to a total of 59 weeks (regular UI of 26 weeks + PEUC of 13 weeks + FED-ED extension of 20 weeks). It all depends on when someone exhausts their claim and how much time remains to collect PEUC or FED-ED benefits before those programs expire. Keyword "up to".

Additional questions answered in EDD Newsletter

Am I eligible for FED-ED?

  • You must remain able and available for work

  • You must have earnings during the base period of regular UI claim that exceed 40x the weekly benefit amount or 1.5 times their highest quarter of total wages

If that sounds confusing:

  1. Figure out what your base period is. More info on base period here

  2. Calculate your total base period earnings

  3. The following needs to be true:

  • Total base period earnings > Weekly Benefit Amount x 40

OR

  • Total base period earnings > Total wages of Highest Quarter x 1.5


Do I need to do anything?

  • Those who meet eligibility requirements of FED-ED extension, EDD will automatically file a FED-ED extension and mail a notice of eligibility to the claimant.

  • You will need to complete the usual bi-weekly certification to determine eligibility for payment


What if I don't qualify for FED-ED?

  • EDD will send claimant a notice titled Immediate Action Required -- Pandemic Unemployment Assistance Self-Certification -- this will require you to attest that you meet PUA eligibility requirements before being paid PUA benefits. Complete and send back to EDD

  • EDD will proactively reopen your PUA claim if you already had one established

  • If you have not had one previously, EDD will file a PUA claim in order to help maintain the availability of benefits

  • NOTE: Maximum benefits of PUA is 46 weeks, BUT if you've received any regular UI benefits, those weeks will count against the 46 weeks

  • Ex. 46 weeks - # of weeks on regular UI = how many weeks your PUA will last

What about the additional $600 from the CARES Act?

  • All valid claims including regular UI, PUA, PEUC, and FED-ED will receive the additional $600 up until July 25, 2020

Info for Employers

  • AB103 also helps provide for some other tax relief to employers

  • Employers who pay federal and state UI taxes on employees' wages to fund regular UI benefits will not bear the cost of the extra 20 weeks of FED-ED

  • Tax-rated employers will be relieved of all COVID-19 related charges to their reserve account balance and experience rating, unless the employer or agent of employer was at fault

  • When employers have a high amount of unemployment benefit charges applied, their tax rates increase, but with AB103, the state is leveraging the provisions of the federal legislation, which include a provision to encourage state to apply a "non-charging" rule to avoid significant increases to employers' tax rates due to layoffs beyond their control

  • Non-contributory employers who reimburse the State's Trust Fund for the costs of regular and extended UI benefits are required to pay 100% of their former employees' benefit costs, but under the CARES Act, they are eligible to receive 50% reimbursement on UI charges, including FED-ED benefits



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