Why Supplemental Unemployment Benefits Turn Into Problems

Supplemental unemployment benefits are confusing. supplemental unemployment benefits In fact, this term has been confusing so many people that the Minnesota Supreme Court reviewed a case just a short while ago specific to supplemental unemployment insurance.

If you are seeking an appeal and anticipate an issue with supplemental unemployment benefits, please contact me.

What are supplemental unemployment benefits?

Supplemental unemployment benefits are benefits that derive from an insurance product.  Some workers purchase this product while others are given the product as an element of their employment benefits.

Generally, supplemental benefits are viewed as a pay check from an insurance company, which is paid to an unemployed person eligible for Minnesota’s unemployment benefit program under rule 268.085.

When are Supplemental unemployment benefits a problem?

For quite sometime, the unemployment office has been confused on whether supplemental benefits count as “wages”.  What is or is not a wage benefit is denied under Minnesota rule 268.035.

If considered wages, supplemental unemployment benefits may have delayed or worse, denied a person’s separate unemployment benefit.

Are SUB benefits different?

In Minnesota, supplemental unemployment benefits are also called SUB.

Exceptions to SUB wages

Yes, in Minnesota, there are approximately 17 types of payments that are not considered wages.  One of the many exceptions includes payments made to supplement unemployment under a plan established by an employer.

Just to name a few, other exceptions include:

  • Payments to or from a trust under  United States Code, title 26, section 401(a) ,
  • The value of any special discount or markdowns,
  • Royalties,
  • Non qualified stock options,
  • Sickness or disability benefits,
  • And approximately 12 other exceptions found here.

Goal for Applicants

The goal for applicants is to show or prove why their supplemental benefits are the same as an exception referenced above.  Again, there are 17 different exceptions and a worker should use every exception to their advantage.

Help with supplemental benefits

As you know, your benefit package is significant.  Because Minnesota laws on this point are very murky, please consider contacting me for help.