2010 Us Treasury 220 Tax Refund - PowerPoint

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2010 Us Treasury 220 Tax Refund - PowerPoint Powered By Docstoc

     Steve Massey
     Pam Mertens
  UI Modernization - Qualifying

State gets 1/3 of its share if state law
provides for a base period using last 4
completed calendar quarters.

State gets remainder if:
– State law contains 2 of 4 benefit eligibility

Offer expires 9/30/2011
UI Modernization - Qualifying

UIPL 14-09
Options for qualifying for 2/3 share
1.Pay some part-time workers
2.VQ for compelling family reasons (domestic
  violence and sexual assault, illness of family
  member, quit to accompany spouse)
3.Training extension up to 26 weeks
4.$15 dependents’ allowance
 Getting Your UI Modernization
Must submit application(s)
Must certify provision is “in effect as
permanent law and not subject to
Must certify application “submitted in
good faith with the intention of
providing benefits to unemployed
workers.” (UIPL 14-09, Ch 1.)
 Getting Your UI Modernization
UIPL – 14-09, Change 3

Domestic Violence/ Sexual Assault Certification.
If the state amended or reinterpret its law, to not
disqualify for separations because of domestic
violence or sexual assault, it must provide a
certification that any such change did not result
in any narrowing of access to UC for victims of
domestic violence or sexual assault.
                                                                  Status of UC Modernization Incentive Payment
                                                                        Applications through May 26, 2010
            48.9                                                                                                                                     VT
                                                                                                                                                        4.6   31.4
                                            MT                                                                                                                            ME
                                            19.5           ND                                                                                                             28.2
     85.6                 ID                                                                   WI                                                                                MA
                                                           SD                                                                                           NY
                          32.3                                                                 133.9          MI                                     412.7
                                            WY                                                                69.4
                                                                                 IA                                                                                       RI
                   NV                                                                                                                           PA
                                                           NE                    70.8                                                                                CT 87.8
                   76.9                                                                                               OH
                                                                                                    IL                88.2                                           NJ 206.8
                                 UT                                                                         IN
CA                               20.3              CO                                             301.2                           WV
                                                                                                                                                                DE 21.9
                                                   127.5          KS                                                              11.1        VA 62.8
                                                                  69.0              MO                               KY                                          MD 126.8

                                                                                                                                                NC              DC 9.2
                                                                     OK                                   TN 141.8
                                             NM                      75.9               AR                                               SC
                                             39.0                                       60.0
                                                                                                  MS        AL            GA

                                                                               Full share approvals (26 states)
                                                                               1/3 share approvals (8 states)

                                                                   34 states have been approved for incentive
                                                                        payments totaling $3,040,299,563
       AK 15.6                    HI 30.5
Section 303(a)(1), SSA “when due”

 §303(a)(1) requires such methods of
 administration … which will ensure full
 payment of unemployment compensation
 “when due.”
     Java and “When Due”

California Department of Human
Resources Development v Java, (Java)
a class action lawsuit filed by claimants
 initially held eligible, benefits suspended
when their employers filed an appeal.

California informal fact finding interview
afforded the employer notice and an
opportunity to be heard, and state agency
violated the “when due” requirement when
it withheld UC benefits during the
pendency of the employer’s appeal.

Issue – what does “when due” under
§303(a)(1) mean?
Answer it means “at the earliest stage of
unemployment that such payments are
administratively feasible after giving both
the worker and the employer an
opportunity to be heard.”
         Java Aftermath

When Java was decided, California was
taking about 2 months to decide an appeal

After Java, USDOL developed the benefit
payment and appeals promptness
         Java Aftermath
The Benefit Payment Promptness
standard is found in 20 CFR 640.

Intrastate claims – 87% within 14 days (21
days for non waiting week states) and
93% within 35 days.
Interstate claims – 70% within 14 days (21
days for non waiting week states, 78%
within 35 days.
Appeals Promptness Standard – 20 CFR

First level appeals - 60 % within 30 days
of the appeal, 80% within 45 days.
            Case Aging
Average age of all pending cases.

The measure is the average age of all
pending single-claimant appeals at the
end of the measurement period.

Lower Authority Case Aging Standard is
30 days.

Higher Authority Case Aging Standard is
40 days.
     UIPL 14-05, Change 3

The regulatory requirements for lower
authority appeals promptness are found in
20 CFR Part 650.4(b). These
requirements remain in effect, and failure
to meet them will require corrective action.
    Trends in Performance
1/1/2000 to 12/31/2003

30 day time lapse - 50.5%

45 day time lapse - 71.6%

Case Aging – N/A
    Trends in Performance
1/1/2004 to 12/31/2007

30 day time lapse - 49.7%

45 day time lapse - 69.1%

Case Aging – 39 days
    Trends in Performance
1/1/2008 to 3/31/2010

30 day time lapse - 29%

45 day time lapse - 51.1%

Case Aging – 52 days
Numerous Programs – Regular UC, EUC
Tiers, EB
Docketing Delays
Scheduling Delays
Decision Delays
  FAC Non-Reduction Rule
Federal Additional Compensation – UIPL
11-09 (February 23, 2009)

States sign agreement with DOL to pay

Non-Reduction Rule – UIPL 24-10 (May
26, 2010)
  FAC Non-Reduction Rule

May not change the “method governing
the computation of regular compensation
in a way that would reduce the average
weekly benefit during the period of the
agreement below what it would have been
based on the law in effect on December
31, 2008
              UC TOP
Treasury Offset Program

On September 30, 2008, the President
signed Public Law 110-328, the “SSI
Extension for Elderly and Disabled
Refugees Act.” Among other things, this
Act amended Federal law to permit the
states to recover certain UC debts due to
fraud from Federal income tax refunds
              UC TOP
UIPL 02-09 Issued to advise states of the
enactment and possible procedures.

Applies to “Covered UC debts.”
        Covered UC Debts
A past-due debt for erroneous payment of UC
due to fraud which has become final under the
state’s UC law and which remains uncollected
for not more than 10 years;
Contributions due to the unemployment fund of
a state for which the state has determined the
person to be liable due to fraud and which
remain uncollected for not more than 10 years;
Any penalties and interest (P&I) assessed by the
state on the above debts.
              UC TOP
Resident Taxpayer Requirement

UC TOP may be used “only if the address
shown on the Federal return for” the
taxable year for which the refund is being
made “is an address within the state
seeking the offset.”
          UC TOP – Notice

State must notify the debtor by “certified mail
return receipt” of intent to offset a Federal tax
refund. Debtor must be given at least 60 days to
present “evidence” that all or part of the liability
is either “not legally enforceable or due to
fraud.” The state must “consider” any evidence
presented and “determine” that the amount is
legally enforceable and due to fraud.
              UC TOP
Implementation of UC TOP – coordination
between two busy agencies.

Treasury Regulations Anticipated by
December 2010

A UIPL is currently being drafted to update
procedures to implement TOP.

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