Keeping Updated on Unemployment Benefits

CARES Act $600 Payments Scheduled to End July 31

Since mid-March, over 40 million Americans have filed for unemployment. In addition to state-level benefits, many people across the country are also receiving an extra $600 from the Federal Government under the CARES Act, which passed on March 27.

As of now, the federal unemployment payments are set to expire July 31, at which point benefits will return to normal amounts determined by each state. Although this date is roughly two months away, eight weeks can go by fast.

Enhanced Benefits Are Available Through the End of 2020

Although these $600 payments are set to expire at the end of July, the Federal Government is providing additional unemployment assistance.

Through the CARES Act’s Pandemic Emergency Unemployment Compensation (PECU) program, 13 additional weeks of unemployment insurance benefits are available for those who have already used benefits provided by their state. This means that most individuals are able to receive a total of 39 weeks of unemployment insurance, even in states that offer fewer weeks than most.

Unlike the additional $600 per week, these enhanced benefits end on or before December 31, 2020 and, as of now, will not extend into 2021.

Benefits for Gig, Part-time, and Contract Workers

Remember, gig, part-time, and contract workers are also all covered under a program included in the CARES Act. The Pandemic Unemployment Assistance (PUA) program extends benefits to these groups, including the extra $600 each week.

Although it is not yet clear, there is a possibility the extra $600 per week benefit could be extended. On May 15, the House of Representatives passed the HEROES Act, which would extend the extra $600 per week and other unemployment benefits from the first stimulus package through January 2021. It would also extend benefits for gig and contract workers through March 2021. However, it is still unclear if the Senate will also pass the bill.

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS60203