Q. We need to temporarily lay off some employees. It will be hard for them to make it on the amount of unemployment benefits. Can we supplement their unemployment benefits without interfering with the unemployment benefits?
A. Yes. North Carolina law allows employers to supplement unemployment benefits. The employees can receive the supplemental pay from their employer and still receive full unemployment benefits.
The amount of supplemental pay provided by the employer plus the amount of the unemployment benefit cannot exceed the employee’s regular weekly wages.
You must establish a written Supplemental Unemployment Pay Plan, and this plan must be approved by the Chief Counsel of the Legal Services Division of the Employment Security Commission, located in Raleigh.
The Supplemental Unemployment Pay Plan will be an plan and thus it must comply with the ERISA (Employee Retirement Income Security Act) and with Revenue Ruling 56-249, 1956-1, C.B. 488.
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