Federal Pandemic Unemployment Compensation Update

We have received many questions asking about the additional $600 Federal Pandemic Unemployment Compensation (FPUC) benefit payment for eligible recipients, and specifically whether local government employers are responsible for paying or reimbursing the State for the $600 FPUC benefit.

Recently, the Department of Labor issued new guidance on this very issue, entitled Unemployment Insurance Program Letter (UIPL) 15-20. The UIPL 15-20 expressly states that the $600 payment to eligible individuals under the FPUC program is 100% federally funded. The UIPL 15-20 also clearly states that States may not charge employers, including local governmental employers, for any FPUC benefits paid under the CARES Act.

Section 2104 of the CARES Act created the temporary FPUC benefit program. The CARES Act specifies that FPUC benefit payments will end after payments for the last week of unemployment before July 31, 2020.

For more information about the operating, financial, and reporting instructions for the FPUC program, please refer to UIPL 15-20.