Do Unemployment Insurance payments impact foster care benefits?

Q: Some youth in foster care in our county are receiving unemployment insurance after losing their jobs or having their hours reduced as a result of the COVID-19 crisis. Do these payments impact their foster care payment or their eligibility for placement or services at all?

A: No, the Unemployment Insurance being provided under the CARES Act does not have a bearing on foster care benefits. Unemployment Insurance is unearned income, which does count toward certain means-tested benefits, however the federal Children’s Bureau has advised the California Department of Social Services that CARES Act unemployment payments are not be considered income or resources when determining Title IV-E eligibility.

Citation: California Department of Social Services, All County Letter 20-81 (July 9, 2020). https://www.cdss.ca.gov/Portals/9/Additional-Resources/Letters-and-Notices/ACLs/2020/20-81.pdf

Can youth receive unemployment in California?

Q: I understand that Congress is considering extending the current unemployment benefits. Can youth receive unemployment in California?

A: Yes, youth can receive unemployment insurance in California where there are no minimum age requirements, as long as they meet other eligibility requirements:

• They lost job through no fault of their own
• They earned enough money during a four-quarter base period:
  • $1,300 in the highest quarter of their base period* [or]
  • $900 in their highest quarter and
  • Total base period earnings of 1.25x their high quarter earnings
• They must be able, available, and actively seeking work

*A base period is a specific 12-month term used to determine eligibility

It is also important to note that several youth may be eligible for unemployment insurance that previously were not. The categories of eligibility have been expanded to include the following types of workers impacted by the Coronavirus:

• Self-employed workers (earned income from own work rather than as an employee)
• Freelancers, e.g. baby-sitter, tutor, blogger, photographer, etc.
• Independent contractors e.g. Lyft/Uber driver, barber/hair stylist, gardener, personal trainer, etc.
• Part-time workers who had a reduction in hours

Weekly benefit amounts range from $40 to $450, and right now, those receiving unemployment get an additional $600 per week until the end of July. Congress is currently considering extending this additional benefit amount beyond July 31, 2020.

Apply for unemployment insurance HERE.

Read a fact sheet developed by the L.A. Opportunity Youth Collaborative for step-by-step instructions to apply, and for other helpful information about applying for unemployment insurance.

Many More Youth are Entitled to Stimulus Checks

Q: Some of the college youth in my foster youth program have already received their COVID-19 stimulus payments from the government, but others have not. What accounts for this difference and what should I tell youth who have not yet received payment?

A: Many people are entitled to a stimulus payment but are unaware how to receive it. Youth who have a social security number, are not claimed as a dependent on anyone else’s tax form, and earn less than $75,000 gross annually (or within these parameters if they are married, head of household or parenting) qualify for funding. As of April 13, 2020, many people automatically received direct deposits in their bank accounts if they filed 2018 or 2019 tax returns and have a bank account on file with the IRS. Everyone falling outside of this scenario must either wait a bit longer or take action to receive their check.

If the youth filed 2018 or 2019 taxes but did not provide bank account information, they should expect to receive a physical check in the beginning of May. They can also visit the IRS website to update their bank account information. However, even if they did not file a tax return, they can still receive payment by filling out this IRS form. A youth who receives Social Security Insurance (SSI) or Social Security Disability Insurance (SSDI) with no dependents, will also automatically receive a payment.

In general, qualified single filers will receive $1,200, and potentially more, if they are married or parenting. Youth are encouraged to apply, even if they are unsure if they qualify. They can check the status of their check at any time here and refer to a Q&A by the Alliance for Children’s Rights for further information on eligibility and common scenarios.

Expanded Eligibility and Timing for Unemployment Insurance

Q: Many of the youth who I work with are part-time workers or a part of the gig economy, and they have either lost their jobs or had their hours reduced, as a result of the coronavirus. Can they still file for unemployment? 

A:

Yes, and they should apply as soon as possible. California has expanded unemployment insurance eligibility to include self-employed workers, freelancers, independent contractors, and part-time workers for up to 39 weeks. Many youth who work as Lyft or Uber drivers, babysitters, dog walkers, or tutors, among other jobs, are now protected. In addition, youth who still have a job and had their hours reduced are also protected.  

In general, to qualify for unemployment insurance in California, one must have lost their job or experienced reduced hours through no fault of their own; met certain earnings thresholds during a base period; and be actively seeking new employment. To check their eligibility, youth should register as soon as possible with the State of California Employment Development Department on their phone or computer or call 1-800-300-5616 for directions on how to apply by phone, mail, or fax. 

If they qualify, youth can receive weekly benefits from $40-450, depending on their previous earnings, and right now, if approved, they would get an additional $600 week until the end of July. Funds will arrive approximately 2-4 weeks after approval, so youth are encouraged to apply as soon as possible and should be prepared to “recertify for benefits” every two weeks. 

For more information refer to this fact sheet created by the Alliance for Children’s Rights.