Some self-employed told to repay jobless benefits

Letter from state sparks worry as federal rules change rapidly on who is qualified for aid

Some self-employed workers receiving unemployment benefits say they are getting letters from the state Department of Workforce Solutions informing them they have been overpaid under a federally funded assistance program and must pay back some of the money.

Almost as troubling, some Santa Fe recipients said, was the lack of details contained in the letter.

“What happened to me Sunday was I got a very awful email that there was an overpayment and if there was fraud it’s 25 percent extra,” said Christina Miller, owner of the Modern Icons art business. “This is another panic thing. They didn’t have to do it this way.”

Lauren Slaff said she received the same email.

“There’s been no information,” said Slaff, a culinary tour guide. “I can tell you, you have many people who were crying.”

Some recipients said they understood they had to supply 2018 or 2019 tax returns to qualify for the federal Pandemic Unemployment Assistance program, which is administered by Workforce Solutions. What apparently was not clearly communicated was an April 27 directive from the U.S. Department of Labor that required submission of 2019 tax returns — though the deadline for the 2019 return is not until July 15.

The Unemployment Insurance Tax & Claims System was revised to reflect the change and the reference to 2018 has been removed, said Workforce Solutions spokeswoman

Stacy Johnston. Also, since May 3 and every Wednesday, the agency sent text messages to Pandemic Unemployment Assistance applicants notifying them to send the 2019 tax documents within the required 21 days after applying for

benefits, she added.

Johnston said the department received no reason from the federal government for the inconsistency in the policy.

Miller and Slaff said they saw no texts about the change requiring 2019 tax documents and did not know there was a problem until the overpayment letters arrived.

The Pandemic Unemployment Assistance program offers $169 to $461 per week, depending on income.

John Finch, who works at Ten Thousand Waves, said he was mystified how he and others could have received too much money. “We have gone from ‘we might actually get through this’ to ‘how in the hell are we going to get through this?’ ” Finch said.

Johnston said Workforce Solutions is following federal requirements for the Pandemic Unemployment Assistance program, which for the first time provides unemployment benefits for the self-employed, contractors and gig economy workers.

“As these are federal regulations, and our department is 100 percent funded by the federal government for unemployment operations, we have little choice here but are in the process of advocating for more flexibility that will allow us to run a

smoother process,” Johnston wrote in an email.

Applicants who did not file 2019 returns later received notices of zero income after receiving benefits based on 2018 income. Workforce Solutions ruled these applicants were “overpaid” because the agency was unable to verify their 2019 wages with the correct tax

documents, Johnston said, and this reduced their weekly benefit amount to the minimum of $169.

“Once claimants submit their 2019 tax documents, 1099’s, or W-2 to the department their benefit amount will be recalculated,” Johnston said. “The department will issue a supplemental payment for all compensatable weeks certified.”