The Covid-19 pandemic has brought about unprecedented changes in the job market. Many people found themselves laid off or furloughed, leading to a surge in unemployment claims and benefits. However, as the economy recovers, and things start to return to some sense of normalcy, it’s important to know what you need to do to continue receiving unemployment benefits post-Covid. In this blog post, we’ll explore the main things you need to know to help ensure you don’t miss out on the benefits you’re entitled to.
1. Keep track of job search requirements
With many states lifting Covid-related restrictions, some unemployed individuals may be required to start actively looking for new jobs to continue receiving benefits. Check with your state’s unemployment office to determine your specific job search requirements. Typically, you’ll be required to apply for a certain number of jobs per week and provide documentation of your job search activity. Failure to comply with these requirements can result in loss of benefits.
2. Beware of fraudulent claims
With the surge in unemployment claims during the Covid-19 pandemic, there has also been an increase in fraudulent claims. Fraudsters may use stolen identities to file fraudulent claims and collect benefits. If you suspect someone has filed a fraudulent claim under your name, be sure to report it immediately to your state’s unemployment office.
3. Understand the tax implications
Unemployment benefits are considered taxable income. This means that you’ll be required to report your benefits on your federal and state income tax returns. Depending on your tax bracket, you may owe taxes on some or all of your benefits. To help avoid unexpected tax bills, consider having taxes withheld from your benefits by completing a W-4V form when you first apply for benefits.
4. Know your eligibility requirements
To receive unemployment benefits, you must meet specific eligibility requirements, including having lost your job through no fault of your own, being able and available to work, and actively seeking new employment. Additionally, you must be actively participating in your state’s program to maintain eligibility for benefits. Be sure to review your state’s specific eligibility requirements to ensure you understand what’s expected of you and don’t accidentally disqualify yourself from receiving benefits.
5. Duration of Benefits:
Typically, unemployment benefits last for 26 weeks, but Congress has passed some legislation to extend that timeframe for an additional 13 weeks. Some states have also extended this further.
6. How to Apply for Benefits:
To apply for unemployment benefits, you must file a claim with your state’s unemployment insurance program. This can typically be done online, over the phone, or in-person. Your state’s labor department website is an excellent resource for understanding the process and what materials you need to apply, such as proof of previous employment and identification documents.
7. Additional Benefits:
Beyond standard unemployment benefits, some states offer additional benefits or programs. For example, some states provide a Pandemic Unemployment Assistance program for those who would not typically qualify for unemployment benefits but have lost their job due to COVID-19. Other states offer job search assistance programs. Be sure to check your state’s unemployment website for more information about these additional resources.
8. Stay informed of changes to the program
Due to the Covid-19 pandemic, many states have instituted temporary changes to their unemployment programs, including expanded eligibility requirements and increased benefit amounts. However, as the economy recovers and things return to normal, some of these changes may be phased out. Stay informed of any changes to your state’s program that may affect your benefits so you can adjust your plans accordingly.
Understanding what you need to know about unemployment benefits post-Covid can be overwhelming, but knowing the eligibility criteria, duration, application process, additional benefits, and tax implications can help ease the burden. If you have lost your job due to Covid-19, take the time to understand your state’s unemployment insurance program and see if you qualify for the benefits available. Remember, seeking help in difficult times is a sign of strength, not weakness.
