As part of our continued effort to bring you accurate information, the Recorder sent unanswered questions asked online during our virtual town hall on March 19 to the Indiana Department of Workforce Development (DWD). The following are the answers provided by DWD.
Can employees who receive a 1099 file for benefits?
DWD: Independent contractors are not engaged in covered employment for the purposes of unemployment insurance, so benefits would not be available. If Disaster Unemployment Assistance (DUA) or a similar federal program is enacted, then an independent contractor may qualify.
What if you owe unemployment, can you still file?
DWD: You can and should file if your job was impacted by COVID-19. Currently, if you were previously overpaid unemployment insurance benefits, DWD will offset 100% of your unemployment insurance benefits until the repayment is satisfied. DWD is evaluating this and any changes will be posted on the COVID-19 Frequently Asked Questions.
What if I owe the IRS and file for unemployment, would they take my unemployment if I’m approved?
DWD: DWD takes part in the federal tax intercept program. Depending on the circumstances and timing of your overpayment, DWD may have requested that the IRS intercept your tax return. You can contact the DWD Benefits Collections department to discuss options.