The first $2,400 is tax-free in 2009
As crazy as it sounds, in the past the unemployed paid a 10% tax on the benefits they received from the government. But for 2009, the first $2,400 is tax-free.
Benefits increase ~$25 In general, unemployment benefits will go up to $25 per week. It’s not much, but in these times everything helps.
Lowers monthly health benefits bill
For those of you who decided to continue your health care plan by enrolling in a Cobra Plan, you should start receiving a subsidy of 65% of the monthly health bill. But, of course, you must be eligible, which basically means you were laid off through no fault of your own and laid off between September 1, 2008 and December 31, 2009. And, even if you decided not to apply for Cobra through Conexis, a third-party employee benefits administrator, after being laid off, can still enroll and get the monthly subsidy.
The capture – Although the government has good intentions in implementing this program, the process is a bit complicated. The government does NOT actually pay 65% of your monthly health care bill up front. Your previous employer must pay 65%, and then at the end of the year, your previous employer can receive a payroll tax credit for the full amount you paid during the year. Additionally, it is up to your former employer to provide Conexis and the Government with the proper forms by April 18 indicating that you are eligible for the subsidy. So, as you can imagine, most businesses right now are hoarding cash due to tough economic times, this process could be moving slowly as a result. Our best advice is to tell your previous employer and Conexis right away if you are eligible for a government subsidy. And, for those of you who have already applied, please continue to remind Conexis and your former employer of your right.