COVID-19 & The Effect on Unemployment
Many Michigan residents are still struggling to move forward during the coronavirus pandemic. Due to government red tape, thousands of people are still looking to receive unemployment benefits to help get through these unprecedented days.
Since March, $15 billion has been distributed to the unemployed. Approximately 2.4 million Michigan residents have filed for unemployment benefits. The numbers are staggering, and time is ticking for relief.
The unemployment benefits increase in Michigan is scheduled to end on July 25. The following offers a brief glimpse of what will likely happen in the upcoming weeks in Michigan:
Michigan Unemployment Benefit Increase Concluding
Once the $600 benefit increase ends, claimants who have filed for unemployment benefits will receive money from the state government only. The maximum payout in Michigan is $362 per week. The $600 increase in benefits comes from the CARES Act, approved on the federal level in March 2020. The U.S. Congress is currently negotiating an extension for the increase.
Reopening the Economy & Job Losses
As virus reports fluctuate, businesses are left in limbo wondering what may happen tomorrow. Workers who are currently laid off or that have recently returned to work are still dealing with real uncertainty. Those currently employed but looking for advancement are often stuck since employers are being conservative with projections.
A fair number of positions are still being furloughed. Some may never return. Businesses with personal contact (i.e., restaurants, salons, etc.) are being shut down in other states with spikes. Thus, benefits from the stimulus package are much more helpful for these businesses deemed by the government as “non-essential”.
Michigan’s unemployment rate hit 21% in May though that number is expected to drop as the virus improves in the state. Nationwide, the unemployment rate is around 13% but some expect it to rise due to the outbreaks in southern states.
Update from the IRS on 2020 Tax Returns
As of July 5, Congressman Dan Kildee of Michigan’s 5th District said the IRS has finished distributing payments to all individuals for which the agency had information. Individuals that are owed additional payments can file and claim the additional money on their 2020 tax returns. This includes individuals whose situation changed in 2020, including the birth or adoption of a child or placement of a child in their foster care.
Michigan Unemployment Benefits & Warren, MI Accounting Firm
Our tax experts at Heemer, Klein & Company, PLLC can help you with your unemployment questions and determine how to get the most out of your benefits. Our firm is on guard to minimize or eliminate harmful risks for our clients. Our tax planning services are designed to make sure clients pay the lowest amount of tax ethically and legally possible. Once we address your unemployment concerns, we will be honored to service all of your business accounting and tax preparation needs.
Click here to fill out our contact form, or call us at our Warren office at (586) 209-3739 to learn more about the comprehensive list of services at Heemer, Klein & Company, PLLC. Offices are located in Warren and Richmond, Michigan.