Hi everyone! This is Dr. Nitin Chhoda and welcome to this very, very important episode of Ignition Time.
I'm going to give you a lot of information
in this video, so you may want to watch it more than once.
So you catch all the fine nuances, the fine details.
And also, I recommend that you share this
video with individuals who are interested in unemployment benefits.
In this video, I'm going to talk about what is expiring and what is actually
extended as of the moment in time that I'm making this video.
I'm going to give you the difference between PEUC and PUA.
Now, you may already be aware of this,
but again, a lot of individuals have asked for clarification about this,
which is why I'm covering this for my viewers and subscribers.
So I'm going to go with THREE things in this video.
The first is I'm going to go with the three segments of unemployment benefits.
This is something you really need
to understand because there's been a lot of confusion about this.
Number 2, I'm going to talk about what is extended versus what is expiring.
And I'm going to talk to you about the biggest mistake
that people make when it comes to extended unemployment benefits from the State
and how you can avoid that mistake. And number 3,
I'm going to give you the difference between PEUC and PUA.
I'm going to break that all down for you.
So what are the 3 segments of unemployment benefits?
The first is the regular state funded unemployment compensation program.
This is the one that you normally get from your State.
Now workers in most States are eligible for up to 26 weeks of benefits.
This is how the program has traditionally
been since it was instituted many decades ago.
And so this 26 weeks of benefits is
available from the regular state funded unemployment compensation program.
Now, although 6 States provide fewer
than 26 weeks and one State provides more than 26 weeks,
according to the Center on Budget and Policy Priorities, which is the CBPP.
Now, because of the pandemic, because of the Cares Act that was passed in March.
We now have a 13 week PEUC extension.
In other words, under the Cares Act, States are providing at least 13
additional weeks that are federally funded.
And these are provided to people who exhaust their State benefits.
So, again, under the Cares Act,
States are providing 13 weeks of additional federally funded benefits
to individuals who have exhausted that typical State benefits,
have exhausted their regular state funded unemployment compensation program.
And now more recently and more and more
states are now starting to make these announcements.
If you are living in California, you know exactly what I'm talking about.
In states with high unemployment, by the way, this is directly correlated
with instances of the spike in the illness.
And at the moment I'm recording this video,
there's a spike in the illness in more than 30 States across the country.
So in States with high unemployment, those benefits are extended even further.
So in other words,
there's the regular state funded unemployment compensation program.
There's a 13 week PEUC federal extension.
And then there is the what's known as the extended benefits.
So what happens is these benefits are
extended even further up another 13 to 20 weeks, according to the CBPP.
Now, extended benefits have triggered in 49 states.
At the time I'm recording this video, plus the District of Columbia,
Puerto Rico and the Virgin Islands.
Now, after the Great Recession, which happened in 2008,
10 States reduced the maximum benefit duration below 26 weeks.
So the maximum benefit duration varies from one state to another.
It's basically the state saying, I'll only pay you for this long.
Now, again,
those under normal circumstances, normal times, we don't live in normal times.
However, since the pandemic started,
4 of those 10 states, that's 4 of those 10 states went back to 26 weeks.
These 4 states include Idaho, Michigan, Georgia and Kansas.
Again, that's Idaho, Michigan, Georgia and Kansas.
Now, a handful of states continue to offer less than 26 weeks.
These states are Missouri, South Carolina, Arkansas,
Florida, North Carolina and Alabama. Once again, Missouri, South Carolina,
Arkansas, Florida, North Carolina and Alabama.
Now, keep in mind,
I was talking about the regular state funded unemployment compensation program.
So, so far, I talked about what is extended.
Now I'm going to talk about what is
expiring at the time I'm recording this video.
The $600 a week federal booster,
which is not to be confused with all the information I gave you prior to this,
because everything prior to this, I talked about extension.
Now I'm talking about expiring.
The $600 a week federal
unemployment booster is scheduled to expire at the end of July.
At the time, I'm recording this video.
Now, keep in mind, the states will only pay the extra
$600 a week federal booster through the end of July.
Now, depending on the state in which you
live, it could be the week ending, July 25th or July 26.
Now, this is a significant blow
to individuals who are depending on the $600 a week federal booster.
It's a lifeline for millions of individuals.
Now, at this point, again, at the time I'm recording this video,
there's no clear indication on whether that booster will be extended,
if it's going to be extended at a certain amount with a certain amendment.
We don't know that as of right now.
So individuals under board the PEUC state
program and the PUA program are scheduled to lose a $600
a week federal booster during the last week of July.
Now, if you've exhausted your state benefits, there is an extension
for an additional 13 weeks of benefits under the PEUC.
And that's good. Until December 26, 2020.
So this means for individuals who've
exhausted their state benefits, they'll get benefits for an additional 13
weeks because this was under the Cares Act.
And this is both under the PEUC and the PUA program.
The problem is this gives you a maximum
payout of three hundred and fifty dollars a week.
That's number one. And number two.
This is good. Until December 26, 2020.
So this brings me to the biggest mistake
with the PEUC, which is the 13 week extension to state unemployment benefits.
The biggest mistake you can make is to say
to yourself, well, I've got unemployment, I'm going to be automatically enrolled
in PEUC it really depends on your
state, whether your state automatically enrolls you or not.
What is the maximum benefit amount in your state?
All of those decisions are made by your state agency.
So you need to contact your state.
It would be wise if you actually contacted
your state and made sure that you were enrolled in the 13 week PEUC extension.
So, again, for those in PEUC
which is a state benefit, you may not be automatically enrolled in this extension.
So if you're nearing the end of your regular state unemployment
benefits, you may want to contact your state agency so you can apply
for the pandemic benefits, apply for the 13 week PEUC extension.
Now, let's understand the difference between PEUC and PUA.
I'll show you a table on the screen so it's very easy to follow along.
PEUC stands for pandemic emergency unemployment compensation.
That's pandemic emergency unemployment compensation.
PUA, which stands for pandemic unemployment assistance.
Now, PEUC is the regular state unemployment
benefits that most individuals qualify for.
The PUA is a federal program for those
who do not qualify, for those who are not eligible for state unemployment benefits,
such as independent contractors and self-employed workers.
The PEUC is available for weeks through December 26, 2020.
The bill is also available through December 26, 2020.
The PEUC provides three hundred and fifty dollars maximum weekly for up to 13 weeks.
The beauty provides the year and fifty
dollars maximum weekly for up to thirty nine weeks.
Now let's keep in mind that the PEUC the 13 week extension to state
unemployment benefits for individuals because state unemployment benefits then
run out at right around 26 weeks for most states.
Now the PUA
is a federal program for individuals who are not going to work.
Normally, under normal circumstances,
not going to get any unemployment benefits to begin with.
So that is an important distinction right there.
So the PEUC is for people who are eligible for state unemployment insurance but have
exhausted their traditional benefits that were given to them by the state.
The people, on the other hand,
is for people who are ineligible for state unemployment benefits or any extensions
through the state unemployment benefits system.
Now, I have seen some reports from some states about this next point,
but you are going to need to talk to your state about this as far as the PEUC goes.
The reason for the loss of what does not
have to be due to the illness as far as the PEUC is concerned and for PUA,
the reason for the loss of work has to be directly related to the illness.
Again, you're going to need to talk to your state about this.
So I know that was a lot to digest.
I appreciate you hanging in there with me.
It was a lot of information. I know.
Hopefully it was beneficial for you in the next year or two.
I'm actually going to break down all
the states in the country and want to give you a detailed breakdown of the total
extent of the weekly unemployment benefits in every single state in the country
and also do another video on which states have extended benefits.
Remember, there's a traditional state unemployment benefits.
There's a 13 week extension with the PEUC and some states are doing extended
benefits because of the high unemployment rate.
So I'm going to do a separate video that will give you a breakdown
of the total number of weekly benefits across all states.
And I'll also do another video that I'll break down, specific states that are doing
extended benefits, that are doing extensions of benefits.
And I hope that's valuable.
I hope that this was useful.
And if you know someone who can benefit
from this video, please share the video with them on Facebook.
On Twitter. Share them.
The YouTube link of this video.
Send them an email with this video so
that they can get information and they can get clarity during this uncertain time.
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