MARCH 19, 2009 - Unemployed Michigan workers will begin collecting an extra $25 a week in unemployment benefits starting with payments issued next week.
"We are completing the necessary computer programming changes and will be ready to add the $25 in Federal Additional Compensation (FAC) to unemployment benefit payments beginning on March 23," Stephen Geskey, director of Michigan's Unemployment Insurance Agency (UIA), said today.
FAC is payable to those who are otherwise entitled to either state or federal unemployment benefits. The extra federal-funded benefits are part of the American Recovery and Reinvestment Act (ARRA) that was passed by Congress and signed into law by President Obama in February. Governor Granholm then signed an agreement with the U.S. Department of Labor granting unemployed Michigan workers the additional $25 more per week in unemployment benefits.
"The extra $25 per week will be added to benefit payments issued starting on Monday, March 23," Geskey said. "And the extra $25 will automatically be added to future benefit payments."
Geskey said unemployed workers will receive a retroactive lump sum payment for any weeks they claimed and were eligible for going back to the week ending February 28, when the benefit increase became effective. The lump sum payment could be $25 to $75. These back payments are expected to be issued in April.
He also noted that the extra $25 a week is taxable. Those who have taxes withheld from their benefit payments will notice a slight decrease in the $25 FAC, once taxes are deducted. The lump-sum payments will also be reduced, if taxes are withheld.
The added benefits will temporarily increase all state and federal unemployment benefit payments and temporarily boost Michigan's maximum weekly benefit from $362 to $387. The $25 is a temporary payment that will be applied to weeks of unemployment for those with current claims and those who establish claims before the end of 2009. FAC payments will be phased out by the week ending July 3, 2010.
Geskey pointed out that Michigan employers will not be charged for the extra unemployment benefits as they are federally funded through the ARRA.
"These extra dollars were made available through the national economic recovery legislation and will be a help to unemployed Michigan workers who are struggling to make ends meet during these extremely challenging times," Geskey said.
Read more releases from the Michigan Department of Energy, Labor & Economic Growth
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