Employer Extended Benefit Costs
The Emergency Unemployment Compensation (EUC) extended benefits, which consists of four tiers of benefits, are entirely federally funded. This means California employers will not be charged for any EUC extended benefits paid to claimants. Payments made on the separate Federal-State Extended Duration (FED-ED) extensions, which are also referred to as Extended Benefit (EB) extensions, are currently entirely federally funded for most employers. This means that most employers (mainly tax-rated ones) will not be charged for any benefits paid to claimants on FED-ED extensions filed with an effective date of May 6, 2012*, or before. However, governmental entities, federally recognized Indian Tribes, and a few other entities as outlined below, are always charged for 100 percent of FED-ED extension benefits paid.
The following chart outlines each extension, the total maximum weeks of benefits available in California based on the current unemployment rate thresholds, and the current charges for extended unemployment benefits according to the employers’ financing method.
|UI Benefits||Weeks of Benefits||Weeks of Benefits||Weeks of Benefits||Weeks of Benefits||Paid By|
|Filed before May 13, 2012||Filed May 13, - May 20, 2012||Filed May 27, - August 26, 2012||Filed after August 26, 2012|
|Initial period of regular UI claim||Up to 26 Weeks||Up to 26 Weeks||Up to 26 Weeks||Up to 26 Weeks||Reimbursable Employer - UI benefits are billed dollar for dollar for reimbursable employers for their former employees.
Tax Rated Employer - UI benefits are charged to a tax rated employer’s reserve account.
|EUC – Tier 1||Up to 20 Weeks||Up to 20 Weeks||Up to 20 Weeks||Up to 14 Weeks||Not billed to any employer, regardless of their financing method.|
|EUC – Tier 2||Up to 14 Weeks||Up to 14 Weeks||Up to 14 Weeks||Up to 14 Weeks||Not billed to any employer, regardless of their financing method.|
|EUC – Tier 3||Up to 13 Weeks||Up to 13 Weeks||Up to 13 Weeks||Up to 9 Weeks||Not billed to any employer, regardless of their financing method.|
|EUC – Tier 4||Up to 6 Weeks||Up to 16 Weeks||Up to 6 Weeks||Up to 10 Weeks||Not billed to any employer, regardless of their financing method.|
|FED-ED (EB)*||Up to 20 weeks||0 Weeks||0 weeks||0 weeks||Reimbursable Employer - Reimbursable employers**, state and local public entities, district hospitals, and federally recognized Indian Tribes regardless of the UI financing method must pay 100 percent of the Federal-State Extended Benefits.
Tax Rated Employer - Not billed to tax rated employers with the exception of state and local public entities and federally recognized Indian Tribes regardless of the financing method.
* Pursuant to Federal and State law, California no longer meets the unemployment rate required to file FED-ED extensions and pay FED-ED benefits for any individuals after May 12, 2012. For individuals who file a FED-ED extension effective May 6, 2012, or before, the last payable week is May 12, 2012, even if that individual is still unemployed or has a balance remaining on the FED-ED extension. If California’s unemployment rate increases again to reach the federal threshold, California will continue to be able to file FED-ED extensions through the effective date of December 30, 2012. However, the FED-ED extension program cannot begin again until 13 weeks have passed since the last FED-ED ending date.
The federal law citations pertaining to the FED-ED/EB costs imposed on state and local government and federally recognized Indian Tribes are:
- Section 204(a)(3) of the Federal-State Extended Unemployment Compensation Act of 1970 and
- CFR 615.14(c)(6).
** Reimbursable Employers do not include those designated as Non-Profit entities under 501(c)(3) of the Internal Revenue Code, which includes Non-Profit Schools, Church/Religious Orders, and the Red Cross.