• Lonnie Granier

Unemployment Flaw in CARES Act Fixed

Updated: Aug 14

Legislation that will ease the cost of unemployment compensation benefits for self-insured nonprofits, passed a month ago by the U.S. House of Representatives and U.S. Senate, was signed into law this week by President Donald Trump.


“Protecting Nonprofits from Catastrophic Cash Flow Strain Act” (S. 4209) will amend the CARES Act to override guidance issued by the U.S. Department of Labor in April. Self-insured employers do not make regular contributions to the statement unemployment trust fund but instead reimburse the state for the full costs of unemployment benefit the state has paid former employees. Section 2103 of the CARES Act required self-insured employers to pay 100 percent of the benefits costs upfront and receive 50 percent reimbursement later. Read more

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