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Arizona’s Shared Work Program A program to help both employers and employees A program to keep Arizona working and to avoid layoffs. What’s Happening Today:.
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Arizona’s Shared Work ProgramA program to help both employers and employeesA program to keep Arizona working and to avoid layoffs
What’s Happening Today: This session is to explain the Shared Work program and to answer general questions about it. We also hope that you will take the opportunity to complete these forms today: • Shared Work Application • UI Certification of Understanding • Tax Election Form
The Shared Work Program: • It is an alternative to employers who are facing reduction in work force. • It allows employers to divide the available work hours among affected employees in lieu of a lay off. • It allows employees to receive a portion of their Shared Work benefits while working reduced hours.
How it works … Step 1 • When demand for goods/services increases, companies hire; when it decreases, they lay off workers. • Shared Work allows companies to spread the available work among employees, cutting regular working hours by 10% to 40%. • Those employees can then receive a corresponding 10% to 40% of their Unemployment Insurance benefits for their reduced hours.
How it works … Step 2 – Employers The employer submits a Shared Work Plan to the Arizona Department of Economic Security, including: • The names of employees participating in Shared Work; • Certification that the employees have been employed for at least 6 months and have received at least $1,500 in wages. • Indication that the employees named agree to “share the work,” rather than be laid off.
How it works … Step 3 – Employees: • Must establish an Arizona Unemployment Insurance Claim; • Must serve a waiting week: benefits are not payable for the first or waiting week; • Have their normal weekly work hours reduced by at least 10%, but not more than 40%, for each week claimed. Reduced hours must be for lack of work with the Shared Work employer; • Have alien registration, if it is applicable; • Cannot refuse work from the Shared Work employer.
Shared Work is like Unemployment Insurance, but there are some differences. Under Shared work, employees: • Are not required to seek work with other employers; • May refuse work offers from other employers; • May work for other employers without affecting their Shared Work benefits.
How benefits are computed: • An Unemployment Insurance claim is established for a 52-week period. • A maximum of 26 weeks can be paid during the 52-week period. • Weekly benefits range from $60 to $240. And these considerations apply, too … • If there is an existing Arizona UI claim, the weekly benefit and total award will not change for the remainder of the benefits year. • If a new claim is being established when you file for Shared Work, a wage statement will be sent by US mail.
Sample of possible benefits if the UI Weekly Benefit is the maximum of $240 Your partner for a stronger Arizona
Two things to consider … Child Support Issues US and AZ Taxes Unemployment Insurance benefits are taxable: Shared Work participants have the option to have taxes deducted from their weekly benefits or not. A 1099G will be sent to all Shared Work participants early in the next calendar year. Court-ordered Child Support payments are deducted from Shared Work benefits. • Contact the Division of Child Support Enforcement and explain that UI benefits are being paid. In Maricopa County, call 602/252-4045 or Statewide 1-800/882-4151 • For more information, visit their website, http://www.azdes.gov/dcse
What happens next? • A yellow pamphlet on UI (A Guide to UI Arizona Benefits) and a Certificate of Understanding/Tax Election Form will be mailed to you. If you complete this form today, you may disregard the one you receive in the mail, but please read the pamphlet carefully. • A Wage Statement will be mailed to you; please review it for accuracy. If there are discrepancies, please call 602/771-8956 to follow up. • Your employer will submit bi-weekly claims to the UI Shared Work Unit after participating employers have signed to verify the hours employees worked and to certify that no work from Shared Work employer was refused. • Payments are usually paid every two weeks to an assigned debit card, unless you elect to have them directly deposited in a bank account.
If you are laid off while participating in the Shared Work Program, you must file a regular Unemployment claim and register with Employment Service! For more information, see www.azui.com
Summary • To Qualify for Shared work benefits: • Hours worked must be reduced by 10% to 40% (you must work 24 to 36hrs/week.) • Must serve a mandatory waiting week • Cannot refuse work from the Shared Work Employer • Must be employed with current employer for at least 6 months and have earned at least $1500 in wages. • Your employer will submit bi-weekly claims to the UI Shared Work Unit. • Payments are paid every two weeks to an assigned debit card, unless you elect to have them directly deposited in a bank account. • To Participate, please complete and submit the Application and required forms to your HR representative as soon as possible.
Q & A Now is the time to ask any general questions, but it’s not the only opportunity: your own Human Resource department will stay in close contact with us for any issues that arise.
