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Updated April 29, 2020

Webinar

On April 13, THLA hosted a webinar with experts at the Texas Workforce Commission (TWC). We asked the TWC questions about applying for unemployment benefits, employee eligibility, employer unemployment tax liability, partial benefits, and more in response to the COVID-19 coronavirus crisis.

View a video recording of the webinar here, or you can download the audio-only here.

THLA’s staff are currently working with TWC to get common questions answered in writing, and answer hotelier questions TWC did not have time to answer in the webinar. Check back here for updates.

We outlined some of the FAQ’s employers should be aware ofas you operate your businesses.

Who is eligible toapply for unemployment benefits?

Any individual who wasworking before the Pandemic Unemployment Assistance (PUA) that is now beingimplemented because of the CARES ACT and is no longer working is eligible toapply. Before the implementation of PUA, only employees who had regularemployment with an employer were eligible. Now independent contractors, andsole proprietors, etc. will be eligible for benefits.

TWC urges individualswho may have been denied prior to the implantation of the PUA to re-applybecause benefits may now be available.

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Do you have any specific tips for the effective filing of a claim?

TWC has opened a vast amount of resources for filing unemployment claims and extended their hours to assist individuals who have questions. Notably, TWC has been assured that benefit seekers will receive benefits from the date they were unemployed and not the date they filed their claim.

Will employers’ unemployment tax rate be affected given the rise of claims we are seeing?

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Sphairon access driver download for windows 10 free. Unemployment tax rates should not be affected during this time if the layoff or the reduction in hours are related to COVID-19. It is imperative that when employers are responding to unemployment claims the employer should clearly note that the layoff or reduction in hours was due to COVID-19 because of a lack of business, or the business having to shut down completely. Notably, the State replenishment tax and State replenishment ratio may slightly increase for every employer due to the number of claims Texas is seeing across the board. More information on the replenishment tax and ratio tax can be found here.

How does the shared work program through TWC operate?

The shared work programis a voluntary program for employers who do not have enough work to keep all oftheir employees at their full-time hours but do not want to implement layoffsof their staff.

Eligibility requirementsare as follows:

The percentage of reduced hours can be different for different individuals, as long as the reduction in normal weekly hours ranges from 10 percent to 40 percent each week, depending on plan specifications. The range of hours worked may vary under Shared Work rules. TWC calculates the number from the number of hours you specify as normal full-time employment. The figure may differ for various plan participants.
The reduction in hours must apply to at least 10 percent of the employees in an affected unit.
A shared work plan must describe how the employees will be notified in advance of the plan, if possible.
A shared work plan must be an alternative to layoffs and you must provide an estimate of the number of employees who would be laid off if you do not participate in a shared work plan.
If you currently provide fringe benefits, you must continue to provide these benefits for the employees in the shared work plan. Fringe benefits include health insurance, retirement benefits, paid vacation, holiday or sick leave, or other employee benefits.

To participate, go https://www.twc.texas.gov/news/covid-19-resources-employers and scroll down to “Mass Claims and Shared Work Programs.”

Will my unemployment tax rate be affected by the shared work program?

No. The unemploymenttax rate will not be charged if you qualify and voluntarily engage in theshared work program.

Can employees file apartial unemployment claim?

Yes. TWC has a partial unemployment claim option however a few specific requirements must be met to apply. There must be a reduction in hours through no fault of the employee which causes a reduction in earnings that causes the employee to go below a threshold amount of 125% of the weekly benefit amount if they were totally unemployed. Normally, an employee who has about 3/8’s (37.5%) reduction of hours would meet this threshold. With no reduction in hours from their part-time schedule, there will not be a viable partial unemployment claim.

Are salariedemployees who had their pay reduced eligible for unemployment benefits?

Likely, no. An employeewho is still with the same company but has a reduction in pay may not qualifyfor unemployment benefits. However, there is a rule called the “20% rule.” Thisrule applies to anyone who has had more than a 20% reduction in pay which mightgive him or her cause to voluntarily quit and file a claim with TWC but this isa separate type of claim which an employee may qualify for.

How does TWCcalculate the “base period” to determine the amount of unemployment benefitthat may be available for and employee?

TWC calculates the baseperiod in quarters.

Your base period is the first four of the last five completed calendar quarters before the effective date of your initial claim. We do not use the quarter in which you file or the quarter before that; we use the one-year period before those two quarters. The effective date is the Sunday of the week in which you apply.

To have a payableclaim, you must meet all of the following requirements:

You have wages in more than one of the four base period calendar quarters.
Your total base period wages are at least 37 times your weekly benefit amount.
If you qualified for benefits on a prior claim, you must have earned six times your new weekly benefit amount since that time.

What if my employeewas not working when the base period is calculated as stated above?

You may be able to use an alternate base period. However, you must call a TWC Tele-Center at 800-939-6631 to ask if you qualify for an alternate base period.

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How do gig workers,independent contractors, etc. qualify for unemployment benefits if theyparticipate in “gig worker” type jobs during this time?

Individuals who participate in “gig worker” like jobs during this time may not qualify for traditional unemployment insurance benefits from Texas because they may not have wages during the relevant base period, explained above to file a claim. However, the C

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