For taxable employers: An opportunity to offset some of your benefit charges

Background

A state law passed March 2020 allots $25 million to the COVID-19 Unemployment Account. The law applies only to taxable employers (those who pay unemployment taxes).

Taxable employers: You can apply to have this account offset some of your benefit charges instead of charging them to your experience rating.

The offset is not a refund or reimbursement. You can apply to offset your benefit charges from the first two quarters of 2020, which might reduce your 2021 tax rate. The application deadline is Sept. 30, 2020.

 

Who is eligible

 
You are eligible to apply if we paid unemployment benefits in the first two quarters of 2020 to your employees who:

  • Were temporarily laid off as a direct or indirect consequence of COVID-19, and
  • Returned to work for you after the layoff.

How it works

 

  • Applying is voluntary.
  • The application will ask you for a list of employees that meet the criteria above. You should not include employees receiving SharedWork benefits because you’re not being charged for those benefits anyway, as per the federal CARES Act.
  • The offset applies only to benefit charges after Feb. 29 in the first quarter of 2020 and to all of the second quarter of 2020.
  • We will determine the amount of your offset by using a formula based on the number of approved applications, the total amount of eligible benefit charges on all approved applications, and the $25 million available.
  • If we deny your application, there is no appeal process, but we will notify you.

How to apply

 

  • We will post an application online or you can request a paper copy. We have not completed the application yet, but we will post a link and instructions on this page when it’s ready. We will send a notice to all taxable employers as soon as the application is available.
  • You must submit or postmark your application by Sept. 30, 2020.
  • You don’t need to submit documentation with your application to prove that you’re eligible. However, we might ask for them. You are responsible for maintaining your documents.

Preparing to apply

 
Documents you might need to complete the application include:

  • Your first and second quarter Statement of Benefit Charges.
  • Any documents that show you re-employed staff who were laid off due to COVID-19.
  • First and second quarter payroll documents.

What the law says