Unemployment Job Search

[Nsmustang55ol]

What is the name of your state (only U.S. law)?
I live in Texas but claiming in North Dakota

I worked in North Dakota for the first half of 2015. I was laid off in Tx in September 2016 and was told i was eligible to claim benefits from north dakota. I just got a job offer a few days ago and will report it Monday when their opened. The first 2.5 months i was applying 4 different places a week and reporting it. I tested for the job i now have in october, november, december. What i did on job search from Mid October on was repeat some job searches i previously did as well as apply for jobs all in one day and jut spread the days out. I got a text from them saying "Correspondence sent by Job Service. Log on to UI ICE and click on the Correspondence link or go to My To Do List Calendar to respond to Fact F" well i log on and i cant see anyhting other than my 1099 for my income taxes from them which was dated the 27th. Same day i got the text. I also received a 1099 for my 401k the other day. Could they be asking about this? Or are they auditing my job search? Since i put different dates on my job search can i get charged? I havent worked and have been applying. The dates are just off. I worried sick becuase i dont know what this text means. And monday is two days away. With this new life changing job i dont want any trouble.

 

[commentator]

First of all, calm down. You don't get "charged" with anything until they have done a thorough investigation of the situation, even if you'd perpetrated wholescale deliberate fraud. Which of course, you haven't done.

My best guess as to what has happened is what I always advise people who are going to do any contract work while drawing unemployment benefits or in the same time period that they did actually draw unemployment benefits. Though you were not on anyone's payroll, they are very interested in whether or not you stopped drawing your unemployment benefits during the time at which you were out of the labor market and working as a contractor. Or whether or not the work you did as a 1099 contractor did actually take you out of the labor market and make you inelegible for unemployment benefits. It's totally possible that some work you might've done could legitimately be done at the same time you were drawing benefits and would not have been necessary to report or stop your claim. It is totally possible that you did the 1099 work during a time when you were not receiving benefits. But the system is set up so that when you get a 1099 and they scan your unemployment benefits and your income taxes for the year and the months and the weeks you actually received them, if there is any questionable situation, they'll want to call you in and check on it. They have a whole department in their agency that does nothing but this sort of thing. Only a few of the actual unemployment fraud cases that your state gets are recommended for prosecution criminally. At that point, you'd know it was going on, and you'd need to get an attorney, but you are a LONG LONG way from that.

The odds of it being about your job searches, or the dates of your job searches, or whether or not you actually made any job searches are very slim. They're MUCH more interested in things that show you must've at some point during that time worked as a contractor, based on the 1099. My suggestion is that you just chill until Monday, and then contact them and deal only with what THEY ask you about. Don't burst wildly into confessions like about how you sometimes hit your children harder than you mean to, or that you applied for work at the Dairy Doodle, when you had no intentions of accepting a job there. Just be professional and provide them with the information they are asking for. This is NOT a criminal investigation. You do not need to clam up and get a lawyer, as I've seen some people advised to do on the internet boards. This is the routine investigation of a bit of automatically generated cross matching that the system receives about a million of this time of the year. It should be very easy to resolve it.

The VERY WORST thing you could possibly do is to ignore this request and hope it will go away. The harder you are to reach, and the less you cooperate with the investigation, the worse it's going to get for you, regardless of whether you committed anything that they might determine was fraud or not. At this point, you just respond, answer the questions they are actually asking as honestly as possible, and let them clear up any and all issues.

 

[commentator]

I now see that the 1099 you received was from your taking money out of your 401K, not from contract work. I'd bet you that this is what they're asking about. And that this 1099 is from your 401K is all they'll need to know. Otherwise, it sounds like you did a thorough and acceptable work search, congratulations on the new job.

 

[Nsmustang55ol]

I now see that the 1099 you received was from your taking money out of your 401K, not from contract work. I'd bet you that this is what they're asking about. And that this 1099 is from your 401K is all they'll need to know. Otherwise, it sounds like you did a thorough and acceptable work search, congratulations on the new job.

So can they not see that the 1099 is from a 401k bank. Or all they care about is it is funds paid to me and my social? When i was laid off they took what they vested in and i was left with my contributions. I withdrew it early to mid december so my family would have a christmas and honestly what i was getting from ND wasnt enough each month. Do they catch things that quick? Meaning i withdrew it december and i got a notice jan 27th?

 

[justalayman]

Do they catch things that quickly;

If you recieved a 1099 then it was also issued to the federal government for purposes of your 2016 tax returns. That means there is a record of your 1099 available to any entity allowed to do a search on your financial records held by the federal gov. The intent of reporting the 1099's to the government in general is so they can be cross checked with the other financial records of your income and
Earnings.


In short; yes.

As to what they know from the 1099:
A 1099 is used to report miscellaneous income. Whether it comes from a bank, a contract job, or anyplace else, it can be necessary to ensure the payments should not be applied against your UI benefits.

I don't know what requirements Minnesota has but in my state, it is required to report anything considered to be a retirement benefit (including payments from annuities, ira's, or any other account) when applying for UI benefits and if payments begin while collecting UI benefits the change of income must be reported when it is recieved. If the same is required in Minnesota you would have been required to report the 401k payments when they were recieved. The payments may or may not have an affect on your UI benefits.

Recieving any benefits typically designated as retirement benefits also suggests you may not be actively seeking work.


In other words; they want to make sure you were eligible for benefits and the payments did not disqualify you or were an indication you weren't complying with all applicable rules.


As a side note; your 1099 payments from a 401k are taxable and if you are under 59 1/2 there is an early withdrawal penalty payable to the federal government of 10% of the amount withdrawn. (That is a really general statement of the applicable rules)

 

[Nsmustang55ol]

Do they catch things that quickly;

If you recieved a 1099 then it was also issued to the federal government for purposes of your 2016 tax returns. That means there is a record of your 1099 available to any entity allowed to do a search on your financial records held by the federal gov. The intent of reporting the 1099's to the government in general is so they can be cross checked with the other financial records of your income and
Earnings.


In short; yes.

As to what they know from the 1099:
A 1099 is used to report miscellaneous income. Whether it comes from a bank, a contract job, or anyplace else, it can be necessary to ensure the payments should not be applied against your UI benefits.

I don't know what requirements Minnesota has but in my state, it is required to report anything considered to be a retirement benefit (including payments from annuities, ira's, or any other account) when applying for UI benefits and if payments begin while collecting UI benefits the change of income must be reported when it is recieved. If the same is required in Minnesota you would have been required to report the 401k payments when they were recieved. The payments may or may not have an affect on your UI benefits.

Recieving any benefits typically designated as retirement benefits also suggests you may not be actively seeking work.


In other words; they want to make sure you were eligible for benefits and the payments did not disqualify you or were an indication you weren't complying with all applicable rules.


As a side note; your 1099 payments from a 401k are taxable and if you are under 59 1/2 there is an early withdrawal penalty payable to the federal government of 10% of the amount withdrawn. (That is a really general statement of the applicable rules)

Yes i understand all of that. I knew the penalty for early withdrawl. It wasnt much. Under 7k before penalties and taxes. So i figured what the hell. I just hope this is what this is about. If they say they overpaid me. Im fine with that. Ill happily repay anything they ask. I just dont want any trouble. I mean like i said about my job searches , what i would do is write dow. Job openings i see. Enter them into the UI system. Then in a few days throughout the week go tbrough the process of applyong for these jobs. So the "dates" that i applied are off. And i really hope that doesnt cause a problem.

 

[justalayman]

Yes i understand all of that. I knew the penalty for early withdrawl. It wasnt much. Under 7k before penalties and taxes. So i figured what the hell. I just hope this is what this is about. If they say they overpaid me. Im fine with that. Ill happily repay anything they ask. I just dont want any trouble. I mean like i said about my job searches , what i would do is write dow. Job openings i see. Enter them into the UI system. Then in a few days throughout the week go tbrough the process of applyong for these jobs. So the "dates" that i applied are off. And i really hope that doesnt cause a problem.

The UI systems are usually very lenient when it comes to mistakes and tend not to be punitive as long there is no intentional deceit or fraud. They generally allow corrections without penalty if an overpayment is the result of innocent error.

Again, allying the rules of my state, you spreading out your job search dates would not be a big issue but just the same, wouldn't be necessary either. We are required to make a reasonable effort to obtain employment. We are not required to spend any specific time doing so. Spreading out dates as you have could cause you problems if it is discovered and your veracity comes into question. Other than that I would think it meaningless.

 

[Nsmustang55ol]

The UI systems are usually very lenient when it comes to mistakes and tend not to be punitive as long there is no intentional deceit or fraud. They generally allow corrections without penalty if an overpayment is the result of innocent error.

Again, allying the rules of my state, you spreading out your job search dates would not be a big issue but just the same, wouldn't be necessary either. We are required to make a reasonable effort to obtain employment. We are not required to spend any specific time doing so. Spreading out dates as you have could cause you problems if it is discovered and your veracity comes into question. Other than that I would think it meaningless.

I hope so. I am worried what this is about to the point where im not even hungry. I do not like knowing. The only other thing besides the job search or 1099 from 401k is maybe a wrong text? The day i got the text 1/27/2017 is also the same day my 1099 from the unemployment office was posted.

 

[justalayman]

I hope so. I am worried what this is about to the point where im not even hungry. I do not like knowing. The only other thing besides the job search or 1099 from 401k is maybe a wrong text? The day i got the text 1/27/2017 is also the same day my 1099 from the unemployment office was posted.

Regardless of why, never ignore their request that you contact them. Many issues are simply a matter of clarification. Failing to provide that clarification means they will take action based on the limited information they have which often results in a worst case scenario.

What is done is done. You can't change any of it so worrying won't help.

 

[Nsmustang55ol]

Regardless of why, never ignore their request that you contact them. Many issues are simply a matter of clarification. Failing to provide that clarification means they will take action based on the limited information they have which often results in a worst case scenario.

What is done is done. You can't change any of it so worrying won't help.

I have every intention of contacting them Monday at 8am. What would one suggest if the do say well we contacted the places you apllied to and some say couldnt verify you applied.

 

[justalayman]

I have every intention of contacting them Monday at 8am. What would one suggest if the do say well we contacted the places you apllied to and some say couldnt verify you applied.

Many employers simply toss applications they aren't interested in into the trash with no proof it was recieved retained. An employers statement they have no record of your application itself is not condemning.

This is generally an honor system with little to disprove the claims made. This is where your veracity is important.

So, what do you say? That your statement of where you made applications is correct.

I do see an issue with your job search though. If you made repeated applications to the same employer, that is not going to be considered a reasonable efffort. Repeat contacts IF there is support the additional contacts are based on the prospective employers responses that repeat contacts are proper or suggested could be considered a valid job search contact but simply sending applications to the same employer over and over is not.

 

[Nsmustang55ol]

Many employers simply toss applications they aren't interested in into the trash with no proof it was recieved retained. An employers statement they have no record of your application itself is not condemning.

This is generally an honor system with little to disprove the claims made. This is where your veracity is important.

So, what do you say? That your statement of where you made applications is correct.

I do see an issue with your job search though. If you made repeated applications to the same employer, that is not going to be considered a reasonable efffort. Repeat contacts IF there is support the additional contacts are based on the prospective employers responses that repeat contacts are proper or suggested could be considered a valid job search contact but simply sending applications to the same employer over and over is not.

I didnt apply to the same company week after week. I really wanted a job in a plant because thats where my experience is. Industrial. If iapplied somewhere and i saw that the job posting was still open say 3 weeks later then i would reapply (if allowed) to show continued interest. Some were even to different positions. Now i got a job offer at a plant that i applied to back in october. And had to test october, november,december and just did my physicals this past friday. Now just waiting on start date which is suppose to be early march. I plan on telling them tomorrow i got a job but no for sure start date as of yet.

But never did i claim benefits while working. Never did i intentionally say im going to lie about applying to jobs. I Never even got a phone call except to where i got an offer after months of test and waiting.I have been applying, i keep a written log of where i apply and yes some days or weeks i alpplied more or less than others.talking to neighbors, friends, relatives. My only issue is these "dates" on my online log. And im the type that worries. I cant go to jail, lose my job, my family that relys on me.

 

[justalayman]

Since you have a family, i suggest you sit down to a nice
Sunday dinner and stop obsessing about this. It will afford you no benefits but only cause you grief.

 

[Nsmustang55ol]

Since you have a family, i suggest you sit down to a nice
Sunday dinner and stop obsessing about this. It will afford you no benefits but only cause you grief.

Im just worried about criminal charges or them being like you committed fraud. Were prosecuting you etc etc. If they do say they over paid me because my job searches are invalid for whatever reason would they try to persue charges without allowing me to settle it by paying back? I am freaking out and i know you say whats done is done. I get it. But i dont want anything to happen with me. I never set out to do anything wrong. I just pray and hope that this inquiry is a mistake or its about my 401k 1099 that i withdrew in december. Im telling them about the 1099 regardless.

 

[eerelations]

No one here can tell you with certainty that there is no chance whatsoever that you will get into serious trouble over this. All the expert volunteers here can tell you that it is extremely unlikely that whatever trouble comes, it will not be serious. And the expert volunteers have told you this several times. There isn't really much more they can say.