As the Coronavirus (COVID-19) spreads, a growing number of employers are considering terminating or furloughing employees. This has raised a number of Maryland unemployment compensation questions that, although not specifically related to the COVID-19 pandemic, result from its effects on employees and employers alike. This article provides guidance on the most common COVID-19 related unemployment issues.

• Determining a claimant’s weekly benefit amount (WBA) in Maryland.
• A claimant’s WBA is approximately 54% of gross weekly wages up to a maximum of $430 per week.
• Effect of a reduction in an employee’s hours on the employee’s unemployment benefits.
• A claimant that is not fully employed, but earning income, will have the income deducted from the WBA dollar-for-dollar for amounts earned over $50. If the earnings exceed the WBA, no benefit will be paid for that week.
• Effect of paying a bonus on WBA.
• If an employer pays an employee the difference between the amount the employee was earning and the employee’s WBA, the bonus likely will affect the employee’s WBA. The following payments made to an employee may be deducted from an employee’s WBA:
• Severance payments are deductible and will be pro-rated over subsequent weeks based on the last weekly wage paid.
• Vacation or holiday payments are deducted if, on or before the last day of work, the employer provides a definite return to work (RTW) date. If no definite RTW date is provided to the employee, the payments are not deducted.
• Bonus pay – may reduce or eliminate WBA depending on the weeks to which the pay is attributed.

Opinions and conclusions in this post are solely those of the author unless otherwise indicated. The information contained in this blog is general in nature and is not offered and cannot be considered as legal advice for any particular situation. The author has provided the links referenced above for information purposes only and by doing so, does not adopt or incorporate the contents. Any federal tax advice provided in this communication is not intended or written by the author to be used, and cannot be used by the recipient, for the purpose of avoiding penalties which may be imposed on the recipient by the IRS. Please contact the author if you would like to receive written advice in a format which complies with IRS rules and may be relied upon to avoid penalties.

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