There’s an ongoing debate whether all of the government assistance is encouraging Americans to delay returning to work. Some argue that between the stimulus payments and federal unemployment supplements, people are no longer motivated to return to work. There may be a compelling argument there, as they may also qualify for low or no cost health insurance.
The government has provided quite a bit of pandemic relief in the form of stimulus payments, unemployment supplements, and the upcoming (optional) advance of an increased Child Tax Credit. For a family of four meeting the income thresholds, the first round of stimulus payments would have paid out $3,400. The second round of stimulus payments could have added another $2,400. Finally, the third stimulus package offered an additional $5,600. The Child Tax Credit could offer another $6,000 to $7,200 depending on the age of the children. That translates into an additional $17,400 to $18,600 in benefits.
There may be some in that boat, but I want to believe that there are plenty of hard-working people who genuinely wish to return to work immediately. Some may still be waiting for their businesses to reopen or work to return when certain pandemic restrictions ease up. Either way, for some Americans some of those benefits are coming to an end. CNBC just released an article highlighting eight states that are ending some or all federal unemployment benefits, joining four other states that have already done so. In total, 25 states will have declined federal funds by mid-July.
The federal unemployment benefits are in addition to state unemployment benefits and cover certain individuals not covered by state unemployment. Federal benefits include:
- $300 weekly supplement in addition to state benefits
- Benefits for those who are self-employed, freelancers, or gig-workers
- Extended benefits for those who exhaust state benefits
- $100 weekly supplement for mixed earners (those who are salaried and self-employed)
Four states (Alaska, Arizona, Florida, and Ohio) have or will be ending the $300 weekly supplement and $100 mixed earner supplement only. For my fellow New Yorkers, there has not been any announcement regarding the early termination of federal benefits that are set to expire on September 6, 2021. While I’m not a betting man, I would be confident predicting that New Yorkers will continue to receive all federal benefits until the program expires.
Between foreclosure and eviction moratoriums and deferments of most student loan payments, the larger creditors have been quiet. However, one should always assess their level of debt and whether it is no longer manageable. This lost income will certainly add to any hardship caused by the pandemic. If you are facing financial hardship, it is important to speak with a knowledgeable attorney to guide you through the options available. Don’t wait until a lawsuit or a wage garnishment to take action. For New Yorkers, Zimmelman Law PLLC is here to help.
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