SALT LAKE CITY, Utah (ABC4 News) – Some employers who are trying to pay their unemployed workers from funds they received through the Paycheck Protection Program are seeing push back from their employees.
As funds from the PPP come in, employers are supposed to use that money to pay their workers, but some are reporting their employees do not want to be paid because they are receiving more money collecting unemployment.
Under normal state funded unemployment insurance, laid off or fired employees receive a weekly amount (maximum $496 based on prior period income reporting). But with the implementation of the CARES Act due to the coronavirus pandemic, those on unemployment are now receiving an additional $600 per week through July 31 or when they return to work, whichever is sooner.
Brooke Porter Coles with the Department of Workforce Services said if an individual receives a paycheck, including from their employer through a PPP loan, they must report that in their weekly unemployment claim, but said that will not take them off unemployment.
“Their unemployment benefits for that week will be prorated to reflect the amount they earned from the paycheck,” said Coles. “They will not be removed from unemployment benefits, unless they have returned to full employment.”
Employers are required to use that money to pay their employees as outlined in the policies set up when the program was implemented so employers are doing the right thing by issuing them paychecks.
Right now, however, the Small Business Administration said they have ran out of the $349 billion funded for the PPP program.
Monday Congress stalled during discussions on more funding for the program however on Tuesday they moved one step closer to re-filling the Paycheck Protection Program when the Senate passed a $483 billion coronavirus aid package. The House is expected to vote on it later this week.