The federal government has passed three stimulus in response to COVID-19. Unfortunately, these bills are not always clear, so we’re here to break them down for you.
Two are important for you to know about as a W-2 Substitute Teacher:
What it is:
The Act provides an estimated $2 trillion in assistance, including:
How it affects you:
You may receive a recovery payment and see an increase in unemployment insurance (UI) benefits.
Recovery payments:
For individuals, the CARES Act includes a recovery rebate payment. The rebate amounts are:
However, not everyone is entitled to a rebate. The amount of each check is phased out by $5 for every $100 in excess of a “threshold amount.”
The excess amount is based on a taxpayer’s 2018 adjusted gross income (AGI) unless they have already filed their 2019 return—then it will be based on 2019 AGI.
The threshold amounts are:
Unemployment insurance benefits:
For those applying for unemployment insurance (UI), you’ll notice the program has been extended and eligibility expanded.
Some workers who are approved for unemployment insurance will receive an additional $600 per week for four months (or until work resumes), on top of what state programs pay. The CARES Act also extends UI benefits for 13 weeks (through Dec. 31) for eligible workers once state benefits have been exhausted.
What it is:
The FFCRA expands paid sick leave or family and medical leave (FML) for employees of certain employers. The bill came into effect on April 1, 2020.
See the employee rights posters:
Employee Rights | Derechos de empleados
When it passed:
At first, it seemed that Scoot’s substitute teachers would be eligible for benefits. But, on March 26th the Department of Labor released new guidance. This new guidance reduces the scope of employee eligibility.
How it affects you:
Under questions 28 and 27 of the current guidance from the Department of Labor, Scoot’s substitutes are only eligible for expanded sick leave or FML through the FFCRA when both of the following requirements are met:
Meet both requirements?:
Contact your Scoot consultant orYou email reply@scoot.education as soon as possible.
What to do instead:
If you need financial assistance, apply for unemployment insurance (UI). The CARES Act expanded eligibility and included additional financial payments.
Employees cannot simultaneously benefit from both UI and sick pay/FML via the FFCRA, so if you are eligible for both you are financially better off claiming UI due to the additional $600/week payments that are included via the CARES Act.
You’re considered a “gig worker,” a self-employed worker who earns income through short-term commitments instead of traditional, long-term employer-employee relationships. Although freelancers usually don’t have unemployment insurance, the government has taken unprecedented steps.
How the CARES Act affects you:
The CARES Act provides relief regardless of whether you’re a W-2 employee or not. As described above, you may receive a recovery payment and see an increase in unemployment insurance (UI) benefits.
The same potential changes in unemployment insurance benefits also apply.
Additionally, the CARES Act provides the following benefits and rebates for self-employed individuals or small businesses:
How FFCR affects you:
FFCR provides some benefits paid for by tax credits that are available to the self-employed and gig workers similar to those working at small and midsize companies.
If you’re self-employed but work for another employer, you will be eligible for a tax credit of up to two weeks of sick pay at the average pay of your employer and 12 weeks of family leave pay at two-thirds the normal rate. The benefit is capped at $511 per day for sick leave and $200 for family leave. Whichever amount is lower will be used.
The tax credit can be applied against a person’s income taxes, and it is refundable, meaning taxpayers will get a government rebate if their sick or family leave pay was greater than their tax bill.
To qualify, you must meet the following requirement:
Conditions apply:
Self-employed individuals have a maximum of 50 days for use of the credit for FFCR’s expanded leave. Those who are self-employed should maintain documentation to prove their eligibility for all of this.
Common questions about the FFCR’s expansion can be found here.