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COVID-19 & The Effect on Unemployment

Date: 7/14/2020

Many Michigan residents are still struggling to move forward during the coronavirus pandemic.  Due to government red tape, thousands of people are still looking to receive unemployment benefits to help get through these unprecedented days.

Since March, $15 billion has been distributed to the unemployed. Approximately 2.4 million Michigan residents have filed for unemployment benefits.  The numbers are staggering, and time is ticking for relief.

The unemployment benefit increase in Michigan is scheduled to end July 25.  The following offers a brief glimpse of what will likely happen in the upcoming weeks in Michigan:

Michigan Unemployment Benefit Increase Concluding

Once the $600 benefit increase ends, claimants who have filed for unemployment benefits will receive money from state government only. The maximum payout in Michigan is $362 per week.  The $600 increase in benefits comes from the CARES Act, approved on the federal level in March 2020.  The U.S. Congress is currently negotiating an extension for the increase.

Reopening the Economy & Job Losses

As virus reports fluctuate, businesses are left in limbo wondering what may happen tomorrow. Workers who are currently laid off or that have recently returned to work are still dealing with real uncertainty.  Those currently employed but looking for advancement are often stuck since employers are being conservative with projections.

A fair number of positions are still being furloughed. Some may never return. Businesses with personal contact (i.e., restaurants, salons, etc.) are being shut down in other states with spikes.  Thus, benefits from the stimulus package are much more helpful for these businesses deemed by the government as “non-essential”.

Michigan’s unemployment rate hit 21% in May though that number is expected to drop as the virus improves in the state.  Nationwide, the unemployment rate is around 13% but some expect it to rise due to the outbreaks in southern states.

Update from the IRS on 2020 Tax Returns

As of July 5, Congressman Dan Kildee of Michigan’s 5th District said the IRS has finished distributing payments to all individuals for which the agency had information.  Individuals that are owed additional payments can file and claim the additional money on their 2020 tax returns.  This includes individuals whose situation changed in 2020, including the birth or adoption of a child or placement of a child in their foster care.

Michigan Unemployment Benefits & Warren, MI Accounting Firm

Our tax experts at Heemer, Klein & Company, PLLC can help you with your unemployment questions and determining how to get the most out of your benefits.  Our firm is on guard to minimize or eliminate harmful risks for our clients. Our tax planning services are designed to make sure clients pay the lowest amount of tax ethically and legally possible.  Once we address your unemployment concerns, we will be honored to service all of your business accounting and tax preparation needs.

Click here to fill out our contact form, or call us at our Warren office at (586) 209-3739 to learn more about the comprehensive list of services at Heemer, Klein & Company, PLLC.  Offices are located in Warren and Richmond, Michigan.

2020
Jul-23-20205 Reasons Borrowers Shouldn’t Rush Their PPP Forgiveness ApplicationsJul-14-2020COVID-19 & The Effect on UnemploymentMar-30-2020COVID-19 Virus Policy UpdateMar-26-2020Stimulus Package / Personal Care Act of 2020Feb-06-2020Changes to 1099's for the 2020 tax yearJan-22-2020Michigan Unemployment NewsJan-21-20202019 Tax GuidesJan-02-20202019 Tax InformationJan-02-2020Important Tax Changes for Individuals in 2019
2019
Dec-09-2019IRS Installment AgreementsNov-08-2019Innocent Spouse ReliefOct-04-2019Small Business Start-Up and Entity Selection/RestructuringSep-11-2019Tax Planning for FranchisesJul-16-2019 Tips for Finding the Right Accountant for Your Taxes
2018
Oct-30-2018The Tax Cuts and Jobs Act of 2017Sep-26-2018What Business Owners Should Know About the Tax Cut and Jobs Act (TCJA)Sep-07-2018Are You Planning to Use Your Tax Refund to Cover Holiday Expenses?Jul-24-2018Heemer, Klein & Company, PLLC Protects Client Data Against Cyberattacks Jun-01-2018Why Most Small Business Owners Should Convert their LLCs and C Corps to S CorporationsMay-18-2018How to Start Tax Preparation for 2019 Right NowJan-08-2018Tax Cuts and Jobs Act
2017
Oct-17-2017Small Business Health Care NewsJan-14-20172017 Standard Mileage Rates
2015
Dec-21-20152015 Tax Extenders (PATH Act) UpdateOct-27-2015Affordable Care Act (Obamacare)Sep-09-2015IRS News and InformationJul-09-2015"Solo"401K" Retirement planMay-26-2015Deducting Losses from a DisasterApr-03-2015Avoid Late Filing PenaltyMar-23-2015Reporting Foreign IncomeMar-19-2015Home Office Tax DeductionMar-06-2015Education Tax CreditsMar-02-2015Small Business Health Care Tax CreditFeb-27-2015Early Retirement DistributionsFeb-26-2015Net Investment Income TaxFeb-24-2015Capital Gains and LossesFeb-09-2015Missing W-2 / Prior year Tax Return CopiesJan-12-20152014 Comprehensive Tax Year In Review
2014
Dec-31-2014Tax Updates 2014May-23-2014Year End Tax Planning -- AMTMay-01-2014Standard Mileage RatesJan-03-2014The 2013 New 3.8% Net Investment Income Tax & Business Tax Breaks
Past
Dec-13-2013The Affordable Care ActJun-01-2013Higher Education Costs Continue to EscalateMay-01-2013Tax Breaks for Families and StudentsApr-01-2013Residency Issues for RetireesMar-01-2013American Taxpayer Relief Act of 2012Jan-01-2013Filing Status Implications