PPP versus unemployment
A relative in Illinois filed for unemployment due to Losing her job at a non-essential business being closed by the Covid -19 crisis. Her former employer then began sending her checks paid by the employer’s PPP loan/grant. Does PPP count as income for ISED purposes? She has not been able to get any answers from ISED. Thanks in advance.
Terry Says
This is going to be a mess. Employers who get PPP MUST use it to pay either employees or rent. And many employees are upset, because they can actually get more in unemployment PLUS Federal $600/week benefits than the employer pays in salary!
Then if she quits, she might not be eligible for unemployment — that’s a gray area!
So she is caught. And if the difference is small, she may want to stick with her employer if she thinks she will have a job when she comes out of this mess. But if she actually gets unemployment benefits that are larger, she might want to decline the PPP paycheck and keep the unemployment benefits — knowing they last for a limited time.
I don’t think there is a rush to do anything — until she is actually faced with receiving two checks and making a choice!
