On August 3, 2020, U.S. Senate Bill 4209, Protecting Nonprofits from Catastrophic Cash Flow Strain Act of 2020, was signed into law as Public Law 116-151. This new federal law amends Title IX of the Social Security Act to improve emergency unemployment relief for governmental entities and certain nonprofit organizations by streamlining the process for unemployment reimbursements relief provided by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Public Law 116-151 provides that certain educational institutions and nonprofits organizations do not have to pay unemployment payments up front and then seek reimbursement.
In response to Public Law 116-151, the Illinois Department of Employment Security (IDES) provided additional information for public educational institutions that are eligible for unemployment reimbursement. Specifically, IDES said that school districts that are reimbursable employers should not pay any COVID-19 related charges, including for benefits provided by the state for non-instructional employees. Accordingly, IDES requests that eligible institutions disregard the voucher attached to the quarterly Statement of Amount Due for Benefits Paid (BEN-118R form) that lists the full amount as “due.”
For questions on this topic, contact Barbara Erickson or any of our HLERK labor/personnel attorneys.