If you are one of the millions of people that have become unemployed because of the Coronavirus pandemic you might be interested to know that the state’s unemployment fund is expected to be empty by July. That’s right, Colorado unemployment is running out. And it’s not a surprise as Coloradoan’s have been filing for unemployment in record numbers.
In fact, nearly 1/2 million people have filed for unemployment in Colorado since the Pandemic began.
Even self employed individuals that usually do not qualify for unemployment are being funded by the Cares Act. For more information on how to apply see our blog on Colorado Unemployment benefits.
What Does This Mean for Your Colorado Unemployment Check?
Lucking the federal government usually steps in to help when states are in crisis like this and will offer Colorado a loan to continue to make payments. To put things into perspective the state is currently paying out on a monthly basis what it generally pays out in a year.
And Colorado is not alone. California was the first to request a federal loan to pay unemployment for their state. Six other states have followed suit.
How This Affects Business Owners
Unemployment insurance premiums are paid by employers. To cover the deficit premiums will rise sharply in order to refill the Unemployment Insurance Trust Fund. According to an example offered by the state Department of Labor and Employment it could be as much as an 86% increase.
Businesses already struggling due to lost revenue from the pandemic will now face even higher fees when they reopen their doors. For those business already suffering they may be considering permanent layoffs. Many businesses have also considered and many have filed for bankruptcy. Some of the most notable are J Crew and Pier 1 Imports.
You Should Not Rely on Colorado Unemployment
If you have been laid off due to Covid-19 and have the opportunity to get another job you should take it. Because as companies continue to crumble it will become harder and harder to find a job. And unemployment is not a lifetime guarantee. Even on unemployment which has a maximum payout many are struggling to pay their bills. A full time job is always better than unemployment.
When Unemployment Can’t Cover Your Bills
If you have a mortgage or rent and a car payment and credit cards in Colorado I can almost guarantee your unemployment check is not covering your bills. Hopefully you have already contacted your creditors to try to work out a solution. If you have and they are unwilling to work with you now might be the best time to look at filing for bankruptcy.