Vermont Business Magazine The Vermont Department of Labor is still in the process of sorting out an error in the printing and mailing of some 55,000 1099-G forms. Some of the forms were sent to the wrong address, thus potentially exposing personal information, including Social Security numbers.
Labor Commissioner Michael Harrington is urging that recipients not open the 1099 letters and to keep them safe. He wants all 1099s to be returned and all those who were mailed 1099s will be issued a self-addressed stamped envelope in which to return them.
Some recipients may have received more than one 1099 because of the nature of the new pandemic benefits issued by the state and federal governments last year. None of the Regular UI 1099s have been issued.
Also, due to a processing issue, the Department of Labor anticipates that some unemployment insurance claimants may experience a one-day delay in their ability to file their weekly claim or receive their weekly benefit amount through direct deposit. Some additional information is provided below, but further information and details will be sent directly to impacted claimants by email.
- Direct Deposit: Weekly benefit payments sent by direct deposit on Monday were delayed due to the processing issue. Claimants should expect to see a one-day delay in the processing of these direct deposits and updating of information on the UI Claimant Portal.
- Initial Claims Submissions: Individuals that established their initial claims with the Department online either on Friday, January 29 or Saturday, January 30, will have experienced a delay in their ability to submit a weekly claim for the week ending January 30. Processing of your initial claim is expected to take place Tuesday. Claimants have until Friday, February 5 to file their weekly claim for the benefit-week-ending January 30.
As of now, the Department believes the 1099-G issue is specific to the 1099s that were associated with the Lost Wages Assistance (LWA) program and a portion of the Vermont Short Term Supplemental benefit population; however, the Department is issuing a mass recall of ALL 1099s that have been mailed, regardless of program.
This is being done out of an abundance of caution. The Department will be mailing further instructions to everyone who received a 1099, along with a self-addressed stamped envelope, to return the incorrect 1099 to the Department.
In addition, recognizing that there is the potential of the improper release of confidential and personal information, the Department has already been in contact with the Vermont Attorney General’s Office in accordance with state statute, and we will be providing all impacted individuals with the option to enroll in ID protection services.
This improper release of data did not occur in every instance, but for those cases where an individual’s information was released, they will be provided the opportunity for identity protection. More specific information will be provided in a mailing to impacted individuals along with further instructions.
They are still in the midst of investigating this issue, the cause of the issue, and the next steps for impacted individuals, but in the immediate, individuals should do the following:
- If an individual receives a 1099 letter from the Department and the name and address on the front do not match, they should not open the 1099. The Department will mail them further instructions for returning the 1099.
- If an individual receives a 1099 letter from the Department and the name and address on the front do match, but when they open the 1099, the information on the inside does not match their information, they should hold onto the 1099. The Department will mail them further instructions for returning the 1099.
- If there is even the possibility that an individual’s confidential information was improperly released, the Department will mail them instructions for protecting their identity and how to enroll in consumer protection services through the Department.
- The Department will be issuing additional guidance to these populations later today/tomorrow along with next steps.
- This issue does not impact an individual’s claim or benefits. This issue is specific to the printing and mailing of 1099 tax documents.
- No incorrect tax information has been shared with the State or Federal tax departments, nor the IRS. The Department will ensure that correct 1099 tax information is sent to the tax departments and IRS for proper tax reporting.
- All claimants will receive a new 1099G tax document from the Unemployment Insurance Division.
- More information will be posted to the Department’s website at labor.vermont.gov.
What is a 1099-G?
The 1099-G is a tax form for Certain Government Payments. Every January, we send a 1099-G form to people who received unemployment benefits during the prior calendar year. If you received unemployment benefits during 2020, you’ll need the information to file your taxes.
The Department of Labor will notify claimants when 1099-Gs are mailed to Unemployment and PUA claimants, or provide update by Feburary 1, 2021, whichever is sooner. Claimant tax information cannot be shared over the phone and claimants are not able to access this information by calling the UI Claimant Assistance Center.
NOTE: Claimants will likely receive multiple 1099-G forms for 2020. This is due to receiving benefits from multiple programs. Those programs that claimants would receive a 1099-G form form include:
- UI - Regular Unemployment Insurance benefits
- PEUC - Pandemic Emergency Unemployment Compensation
- EB - Extended Benefits
- High EB - High Extended Benefits
- FPUC - Federal Pandemic Unemployment Compensation
- PUA - Pandemic Unemployment Assistance
- LWA - Lost Wage Assistance ($300 payment for up to 6 weeks in Aug. 2020 - Sept. 2020)
- VSTS - Vermont Short Term Supplement ($100 payment for up to 5 weeks in Oct. 2020)
- $1,200 - Vermont Treasury's FPUC advance in April 2020