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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:

  • There is an "affected unit" of three or more employees.
  • The normal weekly hours of work and corresponding wages for a participating employee are reduced in the plan by not less than 20% and no more than 40%.
  • The plan applies to at least 10% of the employees in the affected unit.
  • The employer certifies that the fringe benefits provided will remain the same as (1) the employee would have received if working normal hours (a non-reduced schedule) or (2) as other employees not participating in the shared work program.
  • The employer certifies that the implementation of a shared-work plan and the resulting reduction in work hours is in lieu of a layoff that would affect at least 10% of the employees in the affected unit and would result in an equivalent reduction in work hours.
  • The employer has submitted all quarterly state unemployment insurance (SUI) contribution and wage reports required to be filed for all past and current periods and has paid all SUI taxes due for all past and current periods.

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.


Contact Information
For additional information concerning this Alert, please contact:
Workforce Tax Services - Employment Tax Advisory Services
   • Kenneth Hausser (
   • Debera Salam (
   • Kristie Lowery (
   • Peter Berard (


EY Payroll News Flash