What’s New?

These employees should be eligible for Pandemic Unemployment Assistance.

The $600 additional payment is for those receiving regular Unemployment, including any state (Extended Benefits) or federal extension (Pandemic Extended Unemployment Compensation), those receiving Pandemic Unemployment Assistance (PUA), and those paid through Trade Act (TRA). Regular Unemployment payments include those with federal or military wages as well.

Anyone receiving unemployment, Pandemic Unemployment Assistance, or partial benefits under either of those programs will be eligible for Pandemic Unemployment Compensation (the extra $600/week until 7/31/20).  These $600 payments are automatic.

In New Jersey there are set requirements to determine the validity of a claim. If you do not have a valid claim, then your claim will be evaluated for Pandemic Unemployment Assistance (PUA). Whether receiving Unemployment or PUA, you will be eligible for the $600 additional payment.

Anyone self-employed, or paid through a 1099, who does not meet the qualifications for a regular unemployment claim, may be eligible for Pandemic Unemployment Assistance (PUA). The instructions on how to file for PUA is available here.  The claimant must first be denied regular unemployment before being considered for PUA.

Business owners will not qualify for unemployment; however, they may be entitled to Pandemic Unemployment Assistance (PUA). They would still need to file a claim for unemployment and be denied first in order for their application to be considered for PUA.

An employer’s tax experience rating may be affected by the receipt of unemployment benefits by an employee or former employee, but tax impact depends on the particular circumstances of the case.

It depends.  A worker in this situation should apply for UI benefits, and the NJDOL will investigate the matter to determine whether or not the worker is eligible for benefits.  The worker will have to supply documentation regarding the employment.

Yes. If you are working in covered employment you may be entitled to Unemployment.

A 1099 worker is generally an independent contractor; not an employee (unless they’ve been misclassified).  Independent contractors experiencing unemployment or under-employment related to COVID-19 may be eligible for PUA benefits.  The worker should go ahead and apply for benefits, even if they don’t have the 1099 yet.

Potentially, this would require adjudication to determine eligibility for Unemployment or Pandemic Unemployment Assistance.

Potentially, this would require adjudication to determine eligibility for Unemployment or Pandemic Unemployment Assistance.

Potentially, this would require adjudication to determine eligibility for Unemployment or Pandemic Unemployment Assistance.

You are able to reopen your unemployment claim as many times as necessary during the one year benefit period.

While an employer is not paying an employee, the employee should apply for benefits.  If the center later reopens and calls the employee back to work, s/he may or may not be eligible for continued benefits, if s/he chooses not to return to the job.  Such a determination requires a fact-specific analysis – it depends on the particular circumstance of the case.

A claimant who receives a Notice of Determination stating they are ineligible for benefits must appeal within 7 days from receiving the notice or within 10 days of the mailing date of the Notice of Determination.  The appeals process is explained on the Notice of Determination.  The appeal, at this stage, is to the Appeal Tribunal, which will then hold a phone hearing.

Unemployment benefits must be reported for tax purposes, and claimants may choose to have deductions taken from the benefits up front, but they are not required to repay unemployment benefits through taxes.

That information should be published on the NJDOL’s website soon.  We do not know the process for this yet.  Eligible claimants will be notified of the process.

Yes.  If a worker’s hours have been reduced by 20% or more, they should be eligible for benefits.

The same rules for unemployment apply regardless of the size of the employer.

To file a claim visit: https://myunemployment.nj.gov/labor/myunemployment/covidinstructions.shtml.  The claimant should receive a confirmation number.  The claim will be reviewed by Unemployment Insurance staff. NJDOL system is experiencing record levels of demand and all in-person services statewide are currently closed due to COVID-19. If your application was not successful, please keep trying.  You will not lose a day’s benefits as all claims will be backdated to your first day of employment loss.  If getting through by phone is not possible, send an email through the “contact us” link on the NJDOL’s website.

Workshare is a program which allows employees experiencing a reduction in hours to collect a percentage of their unemployment compensation (UC) benefits to replace a portion of their lost wages. In order to be eligible, the employer must have an approved Short Term Compensation (STC) plan in place with Unemployment. In order to qualify for STC, employees must first be determined to be eligible for UC. While receiving UC benefits under an STC plan, employees are not required to meet availability or work search requirements, but they are required to be available for their normal workweek. An alternative to the work share program and requiring a STC plan, is if the employee’s hours are reduced, then they can receive partial unemployment benefits. The employee would report their gross income and would receive the difference, up to the defined partial benefit rate. Partials do not require any set plan, and can just be set up by filing a claim and reporting wages.