July 6, 2020 Missouri announces UI benefits paid under a work-share program will not be charged to employer accounts through December 26, 2020 The Missouri Department of Labor & Industrial Relations announced that unemployment insurance (UI) benefits paid to workers under an approved shared-work plan will not be charged against employers' accounts through December 26, 2020. (News release, June 17, 2020.) Missouri has had a shared-work program for more than 30 years and employers are typically charged with the UI benefits paid to employees under the program. However, the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act provides that states are allowed to waive UI benefit charges to employer accounts through December 2020. As the state's stay-at-home orders are relaxed and companies are transitioning to full operations, the shared-work program allows employers to divide available work among a group of employees who continue to work a reduced schedule. This allows affected employees to retain their jobs and employee benefits while collecting prorated UI benefits to supplement lost wages. Additionally, through July 25, 2020, employees who are eligible for even $1 per week of UI benefits receive the additional federally funded $600 supplement each week that they receive prorated UI benefits. To participate in the shared-work program, an employer must complete an application for the affected unit within the company and submit it to the Missouri Division of Employment Security. Certain program requirements must be met for approval, including that:
Other requirements apply to employers and workers after approval. For more information, go here. UI benefit charging for non-shared-work employers resumes July 5, 2020 As we reported, the Department had previously announced that due to the reopening of state businesses, effective July 5, 2020, the Department will once again begin charging employers with UI benefits. The Department has been waiving UI benefit charges that are the result of COVID-19. (News release, June 15, 2020; EY Payroll Newsflash Vol. 21, #263, 6-16-2020.) Also beginning the week of July 5, 2020, claimants will be required to resume work search requirements to continue to be eligible for UI benefits. The Department will also stop waiving the one-week waiting period for UI claims filed on or after July 5, 2020. Employers are encouraged to report employees who refuse to return to work when recalled or who are receiving pay through the Paycheck Protection Program (PPP). For more information regarding the Department's response to COVID-19, go here. For information about how we can help you evaluate and manage state work-share programs, go here. ———————————————
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