The California Employment Development Department (EDD)  issued a letter on July 24, 2020 which, notified reimbursable employers the eligibility of relief under the Federal CARES Act. Guidance through the CARES Act, required that reimbursable employers pay 100% of their reimbursable charges due in order to receive up to a 50% credit for all benefits paid between March 13, 2020 and December 31, 2020.

On August 3, 2020, the President signed into law the “Protecting Nonprofits from Catastrophic Cash Flow Strain Act (S.4209)”. As a result of this legislation, reimbursable employers are no longer required to pay the charges in full to receive the up to 50% credit. If you have already paid your benefit charges for the period June 30, 2020, the EDD will issue a refund. If you have not paid your benefit charges, the EDD will issue a new statement with the CARES Act credit, and no action is required at this time.

Please contact your CCC Account Executive for additional information.

 


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