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Old 05-20-2020, 10:04 PM
 
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So this got me thinking, PUA does not require any proof of income and you don't have to file taxes if you make under $10,000. Can't individuals take advantage of this? Like stay at home moms? If so, how would you audit these claims?

Last edited by MIFraud; 05-20-2020 at 10:46 PM..
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Old 05-21-2020, 01:32 AM
 
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I thought they did have to provide some type of proof, like pay stubs or tax records. That's how they are figuring out which claims should have their weekly amount increased.

I'm wondering if people will eventually have claims that are overturned once EDD figures out the person got more benefits than they should have, (like all the people who got the "manual switch" on the phone from exhausted to 26 weeks of PUA when they were only supposed to get 13 weeks from PEUC.)

I'm sure there are a lot of people collecting money who don't actually qualify. Who knows if EDD will follow up on any of that. It seems like too much work for them to do any type of audit since they are so overwhelmed now. If they wait, then people could argue that enough time has passed.
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Old 05-21-2020, 05:50 AM
 
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Originally Posted by Scal2010 View Post
I thought they did have to provide some type of proof, like pay stubs or tax records. That's how they are figuring out which claims should have their weekly amount increased.
But you don't have to provide any proof of income to receive the minimum amount.
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Old 05-21-2020, 06:01 AM
 
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Originally Posted by Scal2010 View Post
I thought they did have to provide some type of proof, like pay stubs or tax records. That's how they are figuring out which claims should have their weekly amount increased.
Yes I thought they had to provide 2019 tax return information if no current documentation 2020 earnings to get an increase from the minimum PUA payment.

Below is what was listed in Change Letter1 to 16-20 DOL guidance on PUA

19. Question: When an individual is unable to provide a copy of the prior year’s income tax
return, what other documentation is acceptable to establish monetary entitlement for
PUA?

Answer: Acceptable documentation of wages earned or paid during CY 2019 (i.e., the
PUA base period) includes, but is not limited to, state agency wage records, pay check
stubs, bank receipts, business records, ledgers, contracts, invoices, and billing statements.

20. Question: How will the state calculate the PUA WBA when an individual does not
provide proof of base period wages within 21 days?

Answer: If an individual does not provide proof of CY 2019 (i.e., PUA base period)
wages within 21 days, an individual’s WBA will be reduced based on whichever is
higher - the record of wages already on file or the minimum PUA WBA. An
overpayment must be established for any benefits overpaid.

An individual may submit additional documentation at any time during the Pandemic
Assistance Period to substantiate wages earned or paid during the base period. The state
must immediately issue a monetary redetermination if the state determines the wages
documentation is sufficient to permit a re-computation.

The monetary redetermination applies to all weeks of unemployment that the individual
files during the Pandemic Assistance Period. The state must recalculate the WBA for any
weeks previously paid and provide supplementary payment as appropriate.
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Old 05-21-2020, 06:07 AM
 
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Originally Posted by scraprsmith View Post
Yes I thought they had to provide 2019 tax return information if no current documentation 2020 earnings to get an increase from the minimum PUA payment.
I understand that, but what if they don't want to increase the minimum PUA amount and just want the minimum? Because they don't have any proof at all.
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Old 05-21-2020, 06:21 AM
 
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Originally Posted by MIFraud View Post
I understand that, but what if they don't want to increase the minimum PUA amount and just want the minimum? Because they don't have any proof at all.
They're entitled to collect under PUA if they don't have sufficient earnings to qualify for normal UI. That's one of the eligible reasons to collect PUA, insufficient earnings or work history. They self certify each week and attest to the fact that their unemployment is due to one of the COVID reasons. They don't have to provide any documentation if none exists in order to get the minimum PUA weekly payment. I guess at some point if someone wanted to verify all those self certifications attesting to loss of unemployment due to COVID someone may get busted for fraud claim. Way too early to tell how states will handle fraud overpayments down the line
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Old 05-21-2020, 09:56 AM
 
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Originally Posted by scraprsmith View Post
They're entitled to collect under PUA if they don't have sufficient earnings to qualify for normal UI. That's one of the eligible reasons to collect PUA, insufficient earnings or work history. They self certify each week and attest to the fact that their unemployment is due to one of the COVID reasons. They don't have to provide any documentation if none exists in order to get the minimum PUA weekly payment. I guess at some point if someone wanted to verify all those self certifications attesting to loss of unemployment due to COVID someone may get busted for fraud claim. Way too early to tell how states will handle fraud overpayments down the line
Maybe I have to clarify with an example. Let's say a stay at home mom decides to apply, knowing that they've never worked, but realize, "hey, they won't find out, I can just say I made <$10,000 last year and that's why I didn't file taxes," so they could say they were self employed selling something out of the house or whatever, but in reality, they weren't selling anything at all and just wanted to claim unemployment due to the $ currently. How would they get busted?
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Old 05-21-2020, 10:39 AM
 
Location: Oregon
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Originally Posted by MIFraud View Post
Maybe I have to clarify with an example. Let's say a stay at home mom decides to apply, knowing that they've never worked, but realize, "hey, they won't find out, I can just say I made <$10,000 last year and that's why I didn't file taxes," so they could say they were self employed selling something out of the house or whatever, but in reality, they weren't selling anything at all and just wanted to claim unemployment due to the $ currently. How would they get busted?
My thought is that after all is said and done... they are going to 'audit'.. and the FIRST ones I bet they audit ARE those that said they made less than 10K and had no proof of any reason to be collecting. Even if they just did a random audit of 'some' of those folks... I sure as *hit wouldnt do it on the off chance that Im one of those audited and headed for... MORE financial ruin due to being stupid.
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Old 05-21-2020, 10:54 AM
 
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Originally Posted by kaceyellis View Post
I bet they audit ARE those that said they made less than 10K and had no proof of any reason to be collecting.
That's the issue, can't the stay at home mom say, "I was providing childcare to other children and that was affected by COVID-19. It was a way to make some money, but not over <$10,000 since every penny counts." If they need a reference for proof of childcare services, they'd likely use their best friend as one.
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Old 05-21-2020, 02:16 PM
 
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Originally Posted by MIFraud View Post
That's the issue, can't the stay at home mom say, "I was providing childcare to other children and that was affected by COVID-19. It was a way to make some money, but not over <$10,000 since every penny counts." If they need a reference for proof of childcare services, they'd likely use their best friend as one.
They would need actual records, not just a reference. They would need bank deposit information, receipts, and so on. Plus, do you think most people would risk any negative legal/financial repercussions to lie for their friend so they could collect unemployment? I wouldn't. I know some people would but I think any sane person would see that it's a bad idea.

Side note, IIRC I think they even mentioned that working for a family member's business would disqualify you from collecting benefits. There could be a lot of fraud in those cases but EDD cuts that off before it can start.
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