Million Californians will have to return unemployment payments received during the pandemic

Nearly XNUMX million California residents may have to pay back their EDD unemployment money due to the pandemic, reports Sacramento Bee.

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About 1 million Californians who received unemployment benefits under the federal pandemic relief program must now prove to the state that they have prior work history — or face paying back the benefits.

"The potential overpayment could be any benefits you received," warns the state Employment Development Department, which administers California's unemployment program.

And as the EDD says, "We will add a 30% penalty if we determine that you knowingly gave false information or withheld information in order to get benefits."

According to federal rules, the new filing requirement may also apply to those who filed a petition and did not even receive payment.

The victims received payments under the unemployment assistance program, funded from the federal budget.

The PUA was created in March 2020 to mitigate the impact of the sudden deep recession caused by the pandemic.

The PUA ended in early September.

An estimated 2,9 million Californians received benefits through a program that provided assistance to people who were traditionally not eligible for regular unemployment insurance provided by the state, such as independent contractors and small business owners.

Originally federal law required EDD only to prove income from PUA recipients when they wanted to receive more than the $ 167 minimum in weekly benefits.

But those who did not ask for such an increase were not required to provide any proof of their income or any other proof of work.

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About 30% of those who receive a PUA must provide new employment data.

The rest have either already provided evidence or are not eligible for the federal requirement.

UNEMPLOYMENT FRAUD

Easy access to benefits in California and elsewhere has provoked massive fraud.

California authorities have calculated that the state paid out about $ 20 billion in wrongful claims last month, or about 11% of what has been paid since the Covid pandemic began in March 2020.

The federal government has tried to tackle the problem by requiring a higher level of evidence from applicants showing that they worked prior to receiving benefits.

The requirement means that people who received PUA payments for a 2020 claim after December 27, 2020, or filed a new claim after that date, must provide EDD documentation proving that they worked, were self-employed, or planned to work.

In August, EDD began alerting applicants about the new employment status filing requirement.

The warnings were designed to give people time to prepare appropriately.

MAINTAINING YOUR ADVANTAGES

Various types of documentation can be provided.

These may include a tax return, business license, business receipt or invoice, a W-2 form, or a receipt for payment.

Documents are also accepted that can be used to confirm employment plans or self-employment.

Proof of work may include a letter from a potential employer stating the date of the start of work.

To prove self-employment, someone can list business licenses, state or federal government employer identification numbers, written business plans, or leases.

If someone received PUA benefits in the past year, they need to submit forms showing work since 2019.

If a person started receiving PUA payments in 2021, he must send documents from 2020.

More information is available at EDD web page to help with pandemic unemployment.

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EDD has begun notifying those who need to provide this information via messages, email, and the UI Online home page for applicants.

If someone does not respond within the specified time frame, they will receive a notification by mail.

If not answered, they may be deemed ineligible for the PUA benefits paid this year and may be forced to return what they received.

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