How are Extended Benefits (EB) charged to employers?
A. Normally, private sector employers, including non-profit employers, pay 50 percent of the cost of EB and state and local government employers pay 100 percent. The American Recovery and Reinvestment Act (ARRA) temporarily changed the cost allocation for EB for private sector employers. ARRA provides that the federal government will pay for 100 percent of the cost of EB for weeks of unemployment through the week ending January 2, 2010, and, for certain claimants, for weeks through the week ending May 29, 2010. ARRA, however, does not change the cost allocation of EB for state and local government employers; these employers will continue to be charged for 100 percent of the EB paid to their employees.
