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July 17, 2020
2020-1829

Ohio won't charge employers for COVID-19 UI benefits paid under its workshare program

In Executive Order 2020-26D, Ohio Governor Mike DeWine has directed that for the period the state receives full reimbursement from the U.S. Department of Labor, as provided under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, no participating employers will be charged for unemployment insurance (UI) benefits that are paid under Ohio's SharedWork program (also known as workshare or short-term compensation).

Under the CARES Act, the U.S. Department of Labor may reimburse states for 100% of their short-term compensation (STC) benefit costs up to a maximum of 26 weeks of STC per individual. These reimbursements are available starting with weeks of unemployment beginning on or after March 27, 2020 and ending with weeks of unemployment on or before December 31, 2020. (DOL UIPL 14-20).

The Ohio SharedWork program

SharedWork Ohio is a voluntary layoff-aversion program that allows workers to remain employed and employers to retain trained staff during times of reduced business activity. Under the program, participating employers reduce affected employees' hours in a uniform manner. Participating employees work the reduced hours each week, and the Ohio Department of Job and Family Services (ODJFS) provides eligible individuals with UI benefits proportionate to their reduced hours.

Interested employers provide the ODJFS with a list of participating employees and specify their normal weekly hours of work, not to exceed 40 hours and not including overtime. Part-time employees may be eligible, but all employees in an affected unit must have their hours reduced by the same percentage. Reduction percentages must be at least 10% but not more than 50% of the normal weekly hours of work.

Employers are eligible to participate in the SharedWork program if they:

  • Have at least two affected employees who do not work on a seasonal, temporary or intermittent basis
  • Are current on all Ohio UI reporting, contributions, reimbursements, interest and penalties due
  • Agree to the program requirements

After ODJFS notifies an employer that it approves the submitted SharedWork Ohio plan, the affected employees may apply for SharedWork Ohio benefits.

For more information, see the ODJFS frequently asked questions here.

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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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