27 March 2020

District of Columbia provides UI benefits for employees impacted by COVID-19; employer accounts will not be charged

On March 24, 2020, District of Columbia Mayor Bowser ordered the closure of all nonessential businesses in the District and restricted attendance at mass gatherings to fewer than 10 individuals. Employees of shutdown businesses may work from home if feasible. See Order 2020-53 for the definition of "essential business." The Order is in effect as of March 25, 2020, at 10:00 pm, and lasts through April 24, 2020. (News release.)

The Council of the District of Columbia recently enacted an emergency bill (DC Act 23-247) that provides unemployment benefits (UI) to individuals affected by COVID-19 and provides District employers with noncharge of these benefits. (Council news release, March 17, 2020.)

Under the Act, employer accounts will not be charged with the UI benefits that workers affected by COVID-19 will collect. Workers are eligible for UI benefits regardless of whether the employer has provided a date for the affected employee's return to work or the employee has a reasonable expectation of continued employment with the current employer.

Workers will not be required to follow the District's work-search requirements that non-COVID-19 claimants must follow to continue to be eligible. Claimants must, however, be otherwise eligible for UI benefits. For more on filing a UI claim, go here. See also the District's chart of available benefits for COVID-19 affected workers.

Under the Act, the term "affected employee" includes:

  • An employee who has been quarantined or isolated by a District or federal agency
  • An employee who has self-quarantined or self-isolated as recommended by a medical professional or a District or federal agency
  • An employee of an employer that has ceased or reduced operations due to an order or guidance from the Mayor or District agency, or that has ceased or reduced operations due to a reduction in business revenue that resulted from the COVID-19 crisis

According to the Council's news release the law also:

  • Prohibits evictions of residential and commercial tenants as well as late fees
  • Prohibits utility shutoffs for non-payment
  • Extends public benefit programs such as the Healthcare Alliance, TANF, and SNAP.
  • Creates a small business grant program to assist nonprofit organizations and small contractors who do not qualify for unemployment insurance
  • Places limits on price gouging and stockpiling
  • Delays retail sales tax payments to the government by stores, restaurants, and other businesses
  • Extends deadlines/expirations of corporate tax filings, driver's licenses, professional licenses, etc.
  • Delays the submission date for the Mayor's budget to May 6, 2020

(The District's Department of Employment Services (news release.))

For more on the District's response to COVID-19, go here.

———————————————

Contact Information
For additional information concerning this Alert, please contact:
 
Workforce Tax Services - Employment Tax Advisory Services
   • Kenneth Hausser (kenneth.hausser@ey.com)
   • Debera Salam (debera.salam@ey.com)
   • Kristie Lowery (kristie.lowery@ey.com)

———————————————
ATTACHMENT

EY Payroll News Flash

Document ID: 2020-0759