Unemployment claims are taking some states weeks to process. Here’s what to know if you are stuck waiting for approval

Kentucky will finish reviewing unemployment insurance claims submitted in March this week—almost a full month after those applicants applied.

Unemployment claims are taking some states weeks to process. Here’s what to know if you are stuck waiting for approval

Already 26.5 million initial unemployment insurance claims have been processed. But millions of claims are still waiting approval as states struggle with a massive backlog.

The backlog is so large that Kentucky Governor Andy Beshear says his state should finish reviewing unemployment insurance claims submitted in March this week—almost a full month after those applicants applied. “We are seeing jobless numbers like never before … but only a small percentage are getting processed right away,” says Dan White, head of fiscal policy research at Moody’s Analytics.

As unemployment insurance (UI) applicants wait for their claims to be approved, here’s what to keep in mind.

My unemployment claim is delayed. Will I get back-paid?

Many jobless Americans are waiting weeks to get approval for their unemployment benefits. But once they’re approved, their regular unemployment benefits as well as their additional $600 federal benefit (see below) are retroactive to when their initial claim is eligible—not when it is approved. That means some out-of-work Americans could be in line for some significant retroactive checks.

Can states run out of unemployment funds?

During the good economic times, states are suppose to build up their unemployment trust reserves. But before this massive wave of jobless claims, 22 states did not have the recommended reserves, according to a Department of Labor report published in February.

States who had the recommended reserves are eligible for interest-free federal government loans to cover unemployment benefits. States that didn’t have the recommended reserves, like New York and California, might need to make a request to the federal government to expand interest free borrowing and keep benefits flowing.

How do the additional weekly $600 unemployment benefits work?

The $2.2 trillion coronavirus stimulus bill passed in March provided an additional $600 weekly in unemployment insurance benefits to everyone who qualifies for their state’s program. The additional weekly $600 will only continue through the week of July 31.

Once a state approves an applicant’s unemployment claim, that person will automatically get the additional weekly federal money. However, some states like Hawaii have yet to start distributing the additional $600.

The stimulus bill also expanded who is eligible for unemployment benefits. That includes jobless part-timers, self-employed workers, freelancers and independent contractors.

Can my unemployment benefits be greater than my income?

The additional weekly $600 in unemployment benefits is for anyone that qualifies for UI regardless of their income-level. That works out to $15 per hour on a 40-hour workweek.

When considering that the money is on top of state benefits, most UI recipients who earned under $20 per hour at their jobs, will actually make more on unemployment.

What if my claim gets denied?

Chip Cruze had to shut down his softball training facility in Nashville when it was deemed non-essential in late March. After the CARES Act expanded unemployment benefits to self-employed folks like himself, he applied for UI on March 28.

The Tennessee UI system told him he was ‘monetarily ineligible’ but he’s since reapplied. A denial does not guarantee you won’t eventually get UI benefits. Cruze is preaching patience, and says he understand the state and federal systems are backlogged. The one thing he says he wishes there was more of from his state’s program? Communication during the process.

Our mission to help you navigate the new normal is fueled by subscribers. To enjoy unlimited access to our journalism, subscribe today.

More must-read finance coverage from Fortune:

—Why Goldman Sachs thinks Q1 GDP will be “worse than it looks”
—5 lessons for the coronavirus recovery, from —What the law says about —This time, the banks were ready: —Where investors can find income in a coronavirus-crushed market
—Listen to , a Fortune podcast examining the evolving role of CEO
—WATCH: Why the banks were ready for the financial impact of coronavirus

Subscribe to Fortune’s for no-nonsense finance news and analysis daily.

Source : Fortune More   

What's Your Reaction?

like
0
dislike
0
love
0
funny
0
angry
0
sad
0
wow
0

Next Article

The next round of stimulus checks goes out this week—here’s everything to know if you are still waiting

If you've yet to receive your coronavirus stimulus check from the IRS, you may not have to wait much longer.

The next round of stimulus checks goes out this week—here’s everything to know if you are still waiting

You know the feeling. All of your friends have woken up to find $1,200 freshly deposited in their bank accounts by the Internal Revenue Service; you, on the other hand, are still waiting for your stimulus check.

Perhaps the IRS didn’t have your direct deposit information on file, leaving you to either wait (potentially months) for a paper check to arrive in the mail, or to try and navigate the IRS’s flakey “Get My Payment” website.

If so, you may not have to wait much longer. The IRS is set to launch its next round of stimulus payments this week—meaning that if you’re not one of the 89.5 million Americans who have received nearly $160 billion combined from the government, your piece of the pie could be on its way. Here’s the rundown on where things stand and what to expect.

Who is next in line to receive stimulus checks?

If the IRS did not previously have your direct deposit information on file, but you were among the first wave of people to use the “Get My Payment” portal to provide that information following its April 15 launch, you’ll likely receive your stimulus payment by the end of this week via direct deposit. That include tax-filers that hadn’t previously provided their bank account information to the IRS, as well as eligible non-filers who entered their information via the “Get My Payment” portal.

Additionally, payments should be arriving as soon as this week for those receiving Social Security benefits and Railroad Retirement benefits, and as soon as early May for those receiving Supplemental Security Income (SSI) and Department of Veterans Affairs benefits.

How can I find out when I will receive my stimulus check?

If you used the “Get My Payment” website to enter your direct deposit information “any day until noon on Tuesday,” your payment date will be available to you in the portal “beginning the following Saturday,” according to the IRS. If you entered your bank account information after that noon Tuesday deadline, your payment information should be available in the portal “beginning the Saturday after next.”

So if, for example, you entered your direct deposit details into “Get My Payment” by noon ET this Tuesday, April 28, your payment date should be available beginning this Saturday, May 2. If you provided those details after noon ET on Tuesday, your payment date won’t be available until the following Saturday, May 9.

The “Get My Payment” portal isn’t working for me. What should I do?

You’re not alone. The online tool has been plagued by complaints from users, many of whom have been unable to log in and access its services despite being eligible for stimulus payments.

While the IRS initially brushed off complaints in claiming the website was “operating smoothly and effectively” after its launch earlier this month, the agency announced “significant enhancements” to the portal earlier this week (though it stopped shy of specifying just what those enhancements are).

In order to log in to “Get My Payment,” you need to enter your Social Security Number (or Individual Taxpayer Identification Number), date of birth, street address, and zip code. Once logged in, if you’d like to provide your direct deposit banking information, you’ll also need to verify your adjusted gross income from your most recent tax filing and the amount which was refunded to you or which you owed in taxes that year—so it would be a good idea to have your tax return on hand.

And if you still can’t log into the portal? Here’s a neat little trick: try entering your street address in all caps.

Can I change the existing bank account information I have on file with the IRS?

No. If your bank account information has changed since you last filed your taxes, or if you’d rather have the money deposited into a different bank account, the IRS will not allow you to change or update the bank account information currently on file. The agency says this is to “help protect against potential fraud.”

If the existing bank account on file with the IRS has been closed and/or is no longer valid, the bank will reject the direct deposit and the IRS will mail a paper check to the address they have on file.

Can I change the mailing address I have on file with the IRS?

No, the IRS will not allow you to change your mailing address via the “Get My Payment” portal. If you opt to receive a paper stimulus check in the mail, it will be sent to the most recent address on file with the IRS. If you’ve yet to file your 2019 tax return, the agency suggests filing as soon as possible with your new address in order to update your records.

I’m not providing my direct deposit information to the IRS. How long does it take to receive a stimulus check via mail?

Potentially months. The government is only able to process, print and send roughly 5 million checks a week—so if you’re not receiving your payment electronically, be prepared to wait.

Once your paper stimulus check is mailed, it will take up to 14 days to receive the payment, according to the IRS.

Our mission to help you navigate the new normal is fueled by subscribers. To enjoy unlimited access to our journalism, subscribe today.

More personal finance coverage from Fortune:

—What to do if you can’t pay your bills this month
—Stimulus checks are depositing: How people are spending the money
—Couldn’t track your stimulus check? —What you should know about mortgage forbearance and skipping payments
—Furlough vs. layoff? What to know about your rights and benefits
—Listen to , a Fortune podcast examining the evolving role of CEO
—VIDEO: 401(k) withdrawal penalties waived for anyone hurt by COVID-19

Subscribe to Fortune’s for no-nonsense finance news and analysis daily.

Source : Fortune More   

This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies.