Indiana COVID-19 Unemployment benefits, SBA Disaster Loans & Tax Credits
Published on by Cheryl Ganim in COVID-19, Tax Services
Barnes Dennig is dedicated to helping you identify opportunities, options and strategies to minimize the impact of the COVID-19 Pandemic. Visit our COVID-19 Advisory Services Page here to learn more.
Unemployment Insurance Benefits (IN)
On March 16, 2020, Indiana Governor Eric J. Holcomb has announced several directives regarding unemployment related to the coronavirus (COVID-19) pandemic. Indiana unemployment benefits are available to any individual who is unemployed through no fault of his/her own. If an employer must lay off employees due to the loss of production caused by the coronavirus, individuals may be eligible for unemployment benefits if they meet the monetary criteria and the weekly eligibility criteria. Employees must stay in contact with their employer and be available to work when called back. The Indiana Department of Workforce Development has suspended rules requiring certain unemployment insurance claimants to physically appear at a WorkOne location to engage in reemployment services for the next four weeks. This is so that individuals who may be symptomatic do not have to physically appear to continue their unemployment insurance eligibility. The DWD also will request flexibility under federal and state law to expand eligibility for claimants and ease burdens on employers.
To file for unemployment benefits online please visit the Indiana State Government website here.
If you experience a problem with your claim or have questions, contact the Indiana help line at 1-800-891-6499.
To determine an individual’s weekly payment, divide the total wages earned in the four quarters (12 months) prior to the last quarter the individual worked by 52. Then multiply the sum by 0.47. For example, if the individual earned a total of $30,000 in the four quarters prior to the last quarter worked:
$30,000 ÷ 52 = $576.92 x 0.47 = $271 (weekly benefit amount)
The weekly benefit amount should be rounded down to the next whole dollar amount and will not exceed $390.
An individual should receive his/her first payment within three weeks if there are no issues on the claim for benefits. There is a one week waiting period for payment of unemployment insurance. This means that benefits are not paid for the first week of eligibility. Individuals must still file a voucher for that week.
SBA Disaster Loans
The Small Business Administration (SBA) disaster loans may apply to homeowners as well as small businesses. For more information on how small businesses can plan for and react to the COVID-19 Pandemic, visit the SBA’s Coronavirus (COVID-19): Small Business Guidance & Loan Resources here.
For more information on the SBA’s disaster assistance funding programs visit the SBA website here.
The Small Business Administration announced on Thursday, March 12, 2020 that it would offer economic injury disaster loans, but a presidential declaration could simplify the process for small businesses seeking loans up to $2 million.
President Trump signed an emergency declaration rather than a major disaster declaration, which requires an assessment of significant physical damage and is common for hurricanes or wildfires. Both types of declarations are authorized by the Stafford Act, the relevant difference now is that a major disaster declaration allows for broader assistance such as disaster unemployment assistance and crisis counseling, and other recovery programs, such as community disaster loans.
Section 45S Employer Credit for Paid Family and Medical Leave
Internal Revenue Code Section 45S provides a tax credit for employers who provide paid family and medical leave to their employees. Eligible employers may claim the credit, which is equal to a percentage of wages they pay to qualifying employees while they’re on family and medical leave. The credit generally is effective for wages paid in taxable years of the employer beginning after December 31, 2017.
For more information on this credit, visit the IRS website here.
Contact Us
Barnes Dennig is following updates and responses to the COVID-19 pandemic as they are announced.
Visit Barnes Dennig’s COVID-19 Resource Center call 317-572-1130 for a comprehensive list of communications. Please contact our COVID-19 Advisory Team or any of our leadership team at Barnes Dennig to discuss.
Barnes Dennig COVID-19 Advisory Team Leaders:
- Cheryl Ganim
- Andy Bertke
- Matt Rosen
- Ryan Lauer
- Nick Pennekamp
