Tax News Update    Email this document    Print this document  

November 11, 2020
2020-2671

New state requirements for employee notices about unemployment insurance added because of COVID-19

Letting employees know about their right to unemployment insurance, and how to claim benefits if eligible, has long been a requirement for employers in most states. Our survey of state workforce agency websites shows that except for Arizona, Connecticut, Hawaii, New Hampshire, Ohio and South Carolina, all states require that employers post a notice in the workplace about the availability of unemployment insurance (UI) benefits to eligible workers.

Due to the significant increase in the number of jobless in connection with COVID-19, the US Department of Labor wanted employers to go further in letting employees know about their rights to UI benefits. Accordingly, to be eligible for emergency funds, the Families First Coronavirus Response Act (FFCRA) stipulates that states must require employers to provide a notice to separated employees of the availability of UI benefits.

Prior to the COVID-19 emergency just nine states required that a notice concerning the availability of UI benefits be provided to each separated employee (Arizona, California, Delaware, Illinois, Massachusetts, Nevada, New Jersey, Oklahoma and Tennessee). Because of the FFCRA funding incentive, the requirement now applies in most states.

States have flexibility in determining the contents of the required employee notice; however, in Unemployment Insurance Program Letter 13-20, the US Department of Labor provides a model notice that states may use. States are also given flexibility in determining the form that employers may use in providing the notice to employees (such as by letter, email, text message or flyers).

Ernst & Young LLP insights

Employers will need to confirm that they are complying with state requirements for workplace posters and notices to separated employees that provide information about unemployment insurance.

To assist you in this process, view the PDF file at the bottom of this Tax Alert for the details of our state workforce agency website survey and helpful links to resources.

———————————————

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

———————————————
ATTACHMENTS

New state requirements

EY Payroll News Flash

 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 1996 – 2024, Ernst & Young LLP

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

EY US Tax News Update Master Agreement | EY Privacy Statement