UIPL_10-20_Change_2_Attachment_4.pdf

ETA Advisory File Text

IV -1 Attachment I V to UIPL No. 10 -20 Change 2 Summa ry of Key Short -Time Compensation STC Guidance Following is a summary of the Department s key guidance related to the economic effects of COVID -19 and STC. The Unemployment Insurance UI related provisions are summarized in Unemployment Insurance Program Letter UIPL No. 14 -20 Coronavirus Aid Relief and Economic Security CARES Act of 2020 Summary of Key Unemployment Insurance UI Provisions and Guidance Regarding Temporary E mergency State Staffing Flexibility issued on April 2 2020. Questions and Answers are provided in UIPL No. 14 -20 Change 1 issued on August 12 2020. UIPL No. 22 -12 Short -Time Compensation Provisions in the Middle Class Tax Relief and Job Creation Ac t of 2012 issued on June 18 2012 provides an overview of the provisions in Section 3306 v of the Federal Unemployment Tax Act FUTA . UIPL No. 22 -12 Change 1 issued on December 21 2012 provides states with model legislative language to use in impl ementing an STC program including pre -approved optional provisions under Section 3306 v 10 of FUTA . UIPL No. 22 -12 Change 2 issued on February 7 2014 informs states of additional pre -approved optional provisions under Section 3306 v 10 of FUTA. Section 2108 of the CARES Act provides for temporary 100 percent federal financing of STC payments in a state with a n STC program assuming the state law conforms to Section 3306 v of FUTA and the requirements of Section 2108 a 3 are met for the STC p ayments whether the STC program is new or pre -existing. The state is eligible for reimbursement of STC payments made with respect to weeks of unemployment beginning on or after the date of enactment of the CARES Act and ending on or before September 6 2 021 . The Department provided guidance with the publication of the following UIPLs o UIPL No. 21 -20 Coronavirus Aid Relief and Economic Security CARES Act of 2020 Short -Time Compensation STC Program Provisions and Guidance Regarding 100 Percent Fe deral Reimbursement of Certain State STC Payments issued on May 3 2020. As explained in this UIPL federal reimbursement of STC payments is also available to states that are using STC as a tool for reopening provided the conditions of Section 3306 v FUTA are met . o Section 4.b.vi. of UIPL No. 09 -21 Continued Assistance for Unemployed Workers Act of 2020 Continued Assistance Act - Summary of Key Unemployment Insurance UI Provisions issued December 30 2020 . o Section 4.c.vi. of UIPL No. 14 -21 Americ an Rescue Plan Act of 2021 ARPA Key Unemployment Insurance UI Provisions issued March 15 2021 . When the federal financing provided for in the CARES Act expires Section 3304 a 4 E of FUTA and Section 503 a 5 of the Social Security Act SSA provide IV -2 an exception to the Withdrawal Standard allow ing a state to use its unemployment trust fund to make STC payments. Section 2110 of the CARES Act provides up to 100 million for grants to states for the implementation or improved administration of an STC program including promotion of the program and enrollment of employers assuming the program conforms with federal requirements . The Secretary may use up to 250 000 of the 100 million to provide outreach and to share best practices for STC progr ams. The deadline to apply for these grants is December 31 2023. The Department provided guidance on how to secure a grant with the publication of UIPL No. 22 -20 Coronavirus Aid Relief and Economic Security CARES Act of 2020 Short -Time Compensati on STC Program Grants issued on May 10 2020.