My employees are receiving IRS Form 1099-G’s for unemployment benefits and they did not file for benefits in 2020. What do they do?

An IRS Form 1099-G is issued when federal, state and local governments pay someone any of the following:

  • Unemployment compensation
  • State or local income tax refunds, credits or offsets
  • Re-employment trade adjustment assistance payments
  • Taxable grants
  • Agricultural payments

Unemployment benefits and state and local income tax refunds are the most common reasons an employee would receive a 1099-G. By law, these forms are sent to employees by January 31.

If your employee did not file for unemployment benefits in 2020 and they receive a Form 1099-G, this could be a sign that the employee’s identity was used fraudulently.  The employee should reach out to the State Workforce Agency to report potential fraud. Alerting Thomas & Company to these cases is also recommended so we can determine if we received a claim. We will notify the state of the fraud and monitor your account for additional activity.

 

Identity Theft Protection programs may be another resource that can be used in resolving the UI Fraud claim. If you do not offer an Identity Theft Protection program or your plan does not offer assistance in uncovering the source of the identity theft & assistance in resolving the UI Fraud claim issue, we have partnered with Aura Identity Guard, a leader in identity theft protection, to provide your employees with protection for a low monthly rate.  Aura is unique in that your employee will be assigned a dedicated Case Manager as a single point of contact to assist with:

    1. Contacting the state workforce agency to help resolve the UI Fraud claim.
    2. Determining if they have been a victim of other identity theft and help them resolve it.
    3. Providing ongoing protection from fraud to help achieve personal and financial goals.

For more information about Aura Identity Guard, please visit (identityguard.com/thomasco).