New UI system nearly complete
The Arkansas Department of Workforce Services said Wednesday that it expects to have the system for processing claims for displaced workers who don’t qualify for benefits under the regular unemployment insurance program ready by the end of the month.
The coronavirus relief bill Congress enacted included Pandemic Unemployment Assistance covering self-employed workers, gig-economy workers, independent contractors and others who don’t qualify for traditional unemployment benefits.
“The processing guidelines are different for these claims, and a new system is being developed to process them,” ADWS said. “Workers in this category should apply in the new system. They do not need to complete an application in the current system. Qualified benefits will be retroactive. If eligible for PUA, they would receive the $600 additional weekly benefit amount.”
The relief bill provided regular filers the $600 a week benefit in
addition to an income-based payment. The extra benefit will be provided through July 31. The state has said more than 150,000 regular claims have been processed since public health directives restricting business and social activities took effect last month.
The state has asked people who don’t qualify for traditional unemployment to refrain from attempting to file a claim until the new system is ready, as the tens of thousands of regular claims processed weekly have strained a system that handled about 1,000 claims a week prior to the pandemic. The ADWS website has a link to sign up for email updates on the new system’s readiness.
“The (PUA) system is nearing the state to deploy for user acceptance testing,” the agency said. “Barring unforeseen issues, we anticipate being able to deploy this system the last week of April.
“… Once that program is available for intake, ADWS will issue news releases announcing the availability of the program along with how to apply for these benefits. This program will allow us to pay benefits retroactively to eligible workers and or self-employed workers.”
The agency said displaced part-time workers whose earnings don’t qualify for regular unemployment insurance may be eligible for benefits under the expanded program. Paycheck Protection Program
ADWS attributed a leveling off of unemployment claims to the $2.1 billion in loans Arkansas businesses were approved for from the federal relief bill’s Paycheck Protection Program.
The $350 billion program designed to help small businesses keep their employees on the payroll forgives loans if 75% of the proceeds are used for payroll, according to information provided by the U.S. Small Business Administration. But many small businesses were unable to benefit before the program ran out of money last week. Some of the loans went to large, publicly traded companies.
The almost $500 billion in emergency coronavirus aid the U.S. Senate passed Tuesday included $321 billion in additional funding for the program.
According to news reports, the National Restaurant Association has asked Congress for a $240 billion relief package for the restaurant industry, telling lawmakers restaurants represented less than 9% of loan recipients under the initial funding but account for the majority of coronavirus-related layoffs.