Mixed Income Workers Receive Less Pandemic Assistance Under CARES Act
LOS ANGELES (CBSLA) -- Relief may be on the way for mixed income workers in California.
Those who file both W2 and 1099 earnings — many of whom are in the entertainment industry — have been receiving smaller unemployment benefits under the CARES Act, which only considers W2 earnings.
Like many in Hollywood, Hope Shapiro is a working actress with a side job that often pays more than her acting job. While her acting jobs are considered W2 earnings, her other other earnings are filed through a 1009-ED.
"My 1099 income is probably 75 to 80 percent of my income," she said. "Now that the CARES Act is over, the $600 is going away, I am down to $83 a week because they're not looking at my 1099 income, which is most of my income."
Actor and part-time creative director Ben Hermes said he estimates he's lost out on close to $6,000 since March due to his mixed income.
Due to a flaw in the CARES Act, if a worker has any W2 earnings, they cannot apply for the pandemic unemployment assistance program. That means any 1099 earnings are not counted, drastically reducing their weekly benefits.
This week, Rep. Adam Schiff introduced a bill that would allow those with mixed income to apply into the PUA.
But for people like Hermes, Shapiro, and Kelly Dukat — who have been receiving small weekly benefits — they would not be eligible for any back pay.
The bill does allow individual states to decide whether and when to implement the expanded coverage, but Schiff said he does think California and most other states will opt in. He said he's hoping the bill will be incorporated into the upcoming $3 trillion HEROES Act.