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March 30, 2020
2020-0781

Ohio provides UI benefits for COVID-19, employer accounts will not be charged for benefits

Under an emergency order recently issued by Ohio Governor Dewine, employer accounts of contributory employers will not be charged for unemployment insurance (UI) benefits received by workers affected by COVID-19. Instead, these benefits will be charged against the mutualized account. Nonprofit companies and government entities that have elected to reimburse the Ohio Department of Labor and Industry will be charged with COVID-19 benefits as normal. (Executive Order 2020-03D.)

According to the Department's website, the primary purpose of the mutualized account is to maintain the unemployment trust fund at a safe level and recover the costs of unemployment benefits that are not chargeable to individual employers. When the account balance is low, these costs are recovered and the money restored to the fund through the mutualized tax levied on all contributory employers. The mutualized tax is used solely for the payment of benefits. For calendar years 2018–2020, the mutualized rate was 0.0%.

Under the governor's executive order, workers affected by COVID-19:

  • Will not be required to serve a waiting week for UI benefits
  • Will be able to collect UI benefits when told to self-isolate or quarantine, even if not actually diagnosed with COVID-19, or if an employer reduces the workforce or shuts down completely
  • May be able to collect partial UI benefits if the worker's hours are cut
  • Will not be required to search for work while collecting UI benefits

Employers are asked to provide who are employees temporarily or permanently laid off due to COVID-19 with Form JSF-00671, Mass Layoff Instruction Sheet. The form has been updated for COVID-19 use and provides workers with the mass layoff code they will need to apply for UI benefits. However, if the worker has already filed for benefits without this code, there is no need to correct the information as it will have no effect on the individual's UI benefits.

Information for employers on UI benefits for COVID-19 are available here.

Information for individuals on how to apply for UI benefits if affected by COVID-19 is available here.

See the Department website for more information regarding the Department's response to COVID-19.

Stay-at-home order is in effect

Ohio's governor and director of public health has ordered all Ohio residents to stay at home unless going to a medical appointment, picking up essential supplies, caring for others, or for work at an employer designated as an essential business.

Businesses regarded as nonessential must shut down except for minimum basic operations, as described in the order.

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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)
   • Peter Berard (Peter.berard@ey.com)

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