Covid relief bill offers 11 weeks of extra unemployment benefits, $300 boost and a supplement for some gig workers

Personal finance

Ting Shen/Bloomberg via Getty Images

Unemployed workers would get an extra 11 weeks of jobless benefits and a $300 weekly enhancement to aid payments as part of a Covid relief deal Congress reached Sunday.

Certain self-employed and gig workers would also get an extra $100 a week, according to a document summarizing the legislation.

The 11-week timeline is less than the amount offered by a bipartisan package released earlier this month. That bill would have paid extended and enhanced benefits for 16 weeks, to mid-April.

In all, the $900 billion compromise package, the result of frenzied negotiations ahead of a year-end benefits cliff for millions of workers, offers $120 billion in additional unemployment benefits.

There are more than 20 million Americans collecting unemployment benefits, according to the Labor Department.

$300 weekly enhancement

PUA and PEUC extended

The legislation would also extend two programs created by the CARES Act: Pandemic Unemployment Assistance, which pays benefits to self-employed, gig, freelance and part-time workers generally ineligible for state unemployment insurance; and Pandemic Emergency Unemployment Compensation, which pays extra weeks of benefits to individuals who exhausted their state benefits.

$100 boost for the self-employed

Some self-employed, gig and other workers who have both wage (i.e., W-2) and self-employment (i.e., 1099) income will also be eligible for an additional $100 a week.

Many such individuals are receiving unemployment benefits at a low level due to how their benefits have been calculated. States base their benefit level solely on wages reported on their annual W-2 tax forms, without accounting for self-employment income, which may be much higher.

The bill also offers direct economic relief for individuals via stimulus checks of $600 for individuals making up to $75,000 a year, $1,200 for couples making up to $150,000, and an extra $600 for dependent children.

Articles You May Like

Social Security beneficiaries to soon receive notices revealing the size of their 2025 benefit checks
Palo Alto Networks beat and raise fails to wow Wall Street. But that plays into our hand
Why Most People Still Plan To Take Social Security Early
Wall Street analysts tout our 2 cybersecurity stocks ahead of quarterly earnings
Activist Ananym has a list of suggestions for Henry Schein. How the firm can help improve profits

Leave a Reply

Your email address will not be published. Required fields are marked *