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Recently Laidoff? The Stimulus Package Offers Some Help
By The BIDaWIZ Team - April 10, 2009
With President Barack Obama Signing the $787B Stimulus Bill on February 17th, 2009, the unemployed can now save a few bucks.
First $2,400 is Tax Exempt for 2009
As crazy as it sounds, in the past the unemployed were taxed 10% for the benefits they receive from the government. But for 2009, the first $2,400 is tax exempt.
Benefits Go Up ~$25
In general, unemployment benefits will go up to $25 per week. Its not a lot, but in these times every little bit helps.
The Bill for Monthly Health Benefits Goes Down
For those of you that decided to continue your health-care plan by signing up with a Cobra Plan, you should begin to get subsidized for 65% of the monthly health bill. But, of course, you need to be eligible which basically means you were laid off due to no fault of your own and you were laid off between September 1st, 2008 and December 31st, 2009. And, even if you decided not to go with Cobra (apply for Cobra using Conexis, a 3rd Party Employee Benefits Administrator) after being laid off, you can still sign up and get the monthly subsidy.
The Catch - While the government has good intentions by implementing a program like this, the process is a bit convoluted. The government DOES NOT actually pay the 65% of your monthly health-care bill upfront. Your former employer must pay the 65% and then at the end of the year, your former employer can claim a payroll tax credit for the total amount they paid for the year. In addition, it is up to your former employer to provide Conexis & the Government with the proper forms by April 18th to ensure your eligibilit for the subsidy. So as you can imagine, most companies right now are hoarding cash because of the tough economic times. As a result, this process is moving at a snails pace. Our best advice is to notify your former employer & Conexis immediately if you are eligible for the government subsidy. And, for those of you that have already applied, continue to be persistent in reminding Conexis and your former employer of your entitlement.
Have Comments? Write to comments@BIDaWIZ.com
Source: US Government Printing Office; The American Recovery and Reinvestment Act, as of February 18, 2009
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