San Francisco Chronicle

Jobless face new EDD benefits delays

- By Carolyn Said

About 2.4 million California­ns will have to wait weeks to receive new extended jobless benefits, according to the state Employment Developmen­t Department, which has struggled throughout the pandemic to handle a deluge of unemployme­nt claims. The new delays apply to selfemploy­ed people and those on a federal extension plan.

The $1.9 trillion American Rescue Plan, signed by President Biden last week, adds $300 a week onto jobless benefits until Labor Day, and extends some special pandemic programs. But benefits expired on March 14, and the state agency said it needs more time to implement the new provisions, giving April 10 and April 30 as target dates for different categories.

“We shouldn’t ask people who are out of work, who don’t have any money coming in, to wait,” said state Sen. Josh Becker, DMenlo Park. “That’s the reason we have unemployme­nt insurance. It just shouldn’t take this long.”

EDD previously said it would continue benefits for most people without interrupti­on. It has now specified that the continuity applies only to people on regular unemployme­nt for less than 12 months, as well as those on FEDED, the FederalSta­te Extended Duration program, which adds on additional weeks during periods of high unemployme­nt for people who’ve run out of regular benefits.

California­ns in some other categories — who number 2.4 million — will need to wait until the agency implements the new federal boost. Once that happens, those people will receive all the retroactiv­e benefits they were entitled to, the EDD said.

“California is working to launch these new programs as quickly as possible,” EDD said in a news release, attributin­g some delay to waiting for the U.S. Department of Labor to issue additional guidance. The Department of Labor said Monday that many states may need until midApril or later to update their computer systems to handle the changes.

Those affected:

⏩ PUA, or Pandemic Unemployme­nt Assistance, is a new program Congress created last year for people who are selfemploy­ed, gig workers or freelancer­s, who ordinarily would not qualify for benefits. Department of Labor figures show that there are 1.4 million California­ns on PUA.

EDD said that existing PUA recipients cannot certify for benefits until April 10. Certificat­ion is required every two weeks to keep benefits flowing.

New PUA claimants can file for benefits now and will receive the minimum of $167 a week plus the extra $300, EDD said. After April 10, they’ll be able to provide their income verificati­on, which could increase the $167 minimum to as much as $450.

⏩ PEUC, or Pandemic Emergency Unemployme­nt Compensati­on, adds on additional weeks for people who’ve exhausted regular unemployme­nt. The Department of Labor shows 1 million California­ns are on PEUC.

EDD said that California­ns receiving these benefits cannot certify for additional weeks until April 30.

The stimulus added 29 additional weeks to PEUC, allowing for a total of 53 additional weeks of benefits after people exhausted regular state unemployme­nt.

⏩ People on regular unemployme­nt for 12 months.

When the pandemic and shelterinp­lace orders hit in March 2020, millions of people were thrown out of work. If they haven’t found new jobs, those people now are hitting the 12month mark for collecting benefits — and many more will hit that mark in coming weeks. If they are on regular unemployme­nt, all those people must reapply for a new claim. EDD will notify them of this through their UI Online account or by mail.

“Depending on their situation and eligibilit­y status, the EDD will either move them to a new regular state UI claim or connect them to any newly extended federal benefits that they may qualify to receive,” EDD said.

The agency did not reply to multiple questions about how long this process will take. Outside observers said they expected it to create a logjam.

⏩ Tax help. The American Rescue Plan exempts $10,200 of unemployme­nt benefits received in 2020 from federal taxes. Tax day has been extended to May 17 this year.

For people who haven’t yet filed their returns, the IRS is providing a worksheet as well as working with companies that make taxprepara­tion software to update their products.

For unemployme­nt recipients who already filed their 2020 tax return, the IRS said they should not file an amended return, and instead wait for it to issue additional guidance.

Criminals stole billions of dollars in unemployme­nt benefits during the pandemic. State officials said EDD paid at least $11 billion to fraudsters.

Some con artists used identities of innocent people, who are receiving tax forms from EDD showing the amounts paid. People who were victimized in this way should report it to EDD online or by phone at 8664012849 (Monday to Friday, 8 a.m. to 5 p.m.).

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