The unemployment insurance program provides financial assistance when an employee has no earnings or has a reduction in earnings. Employees are required to report any earnings to the state agency with which they have filed for unemployment benefits. As a result, supplemental payments will be considered wages and could impact unemployment benefits because, at this time, there are no current provisions with state agencies that allow for supplemental payments to help make employees “financially whole.” Additionally, several states now require employers to provide wage information if employees receive any type of payments while off work as a result of COVID-19. The agencies indicated this information must be provided to ensure proper eligibility for benefits is determined.
Please reach out to your representative should you have any questions or concerns.