Unemployment PUA determination state says was overpaid

[interiorspace]

I am (was) an independent contractor that worked as a sound technician for the local school system in Michigan, I would do dance recitals, choir concerts and theater plays.

I did this in 2018, 2019, and was going to in 2020 as well until covid hit. Due to covid I filed for PUA as an independent contractor that "experienced significant reduction in usual or customary services". They asked for proof of 2019 income for my 2021 PUA extension and I gave them my 1099 for that year.

6 months ago they said they would no longer communicate electronically but then gave me a message with a whole 2 days notice at the end of november (which I didn't see as I didn't login to see it).

The message read:
"UIA is in the process of a final review of your PUA Claim. You submitted documentation as proof of income for 2019. That information was not enough to substantiate employment for 2020. Please respond to the following questions with an attachment of 2020 Michigan income or employment with 48 hours of receiving this notice (Wednesday, December 1, 2021, on or before 01:00 pm).Have you worked and earned wages in employment, self-employment, or as a farm worker between January 1, 2020, and March 15, 2020? "

Due to not seeing this message, they sent two letters. One was issuing a determination for the initial PUA claim which claimed "misrepresentation" and are now asking for all of the money I got back.

A second letter was essentially an extension of that determination stating:

"After review, it is redetermined that you are not able to establish a claim for additional PUA. You do not meet the PUA requirements because: You were not employed in 2019 or 2020 immediately prior to the pandemic. Therefore you have not established that you became unemployed, underemployed, unable or unavailable to work as a direct result of covid-19"

Note how the original message says I gave them 2019 proof but that wasn't enough to substantiate employment for 2020. Before issuing the determination they asked for jan 1 to march 15 work and earned wages, so I figure this is key to my protest/appeal....

Now, I normally do not have any work that I do between january and february of each year as that is typically a downtime for shows/plays etc.

I was paid one check in january 23rd of 2020 for the choir concert in december. I was also there in person working on a theater play in march 2020 the week before the initial covid shutdowns. I have the theater program director and her assistant as witnesses willing to sign affidavits that I was there working on that play the week before the shutdowns and that I was going to work.

My question is...what do I do for my protest letter?

Do I upload my check from january? Do I state that I was working but never got paid for the week in march and that I have people willing to attest to that? Unfortunately I literally forgot to include the january check on my 2020 income taxes so to use it as proof of employment during that time I would have to file an amended tax return.

Should I amend my tax return and use this as proof of 2020 income? Or would an amended return after the determination look fraudulent despite it not being so?

Does the check from january count as "worked and earned wages" as I was paid in january even though the work was in december?

Should I mention that I have witnesses willing to attest/sign affidavits that I was there doing the work the week before the shutdowns and directly lost my income due to covid?

 

[PayrollHRGuy]

You may need to file an appeal. Along with that appeal you need to send them proof you worked between January 1, 2020, and March 15, 2020.

The only work you mention is in March of 2020. Why were you not paid for the work you did?

 

[interiorspace]

The only work you mention is in March of 2020. Why were you not paid for the work you did?

Because it was supposed to be a shutdown for just two weeks and then the work would resume. As two weeks dragged on into april and onwards it was apparent the work would never resume but by that point I didn't think it was worth it to bill them for the few hours I worked that week.

 

[quincy]

Because it was supposed to be a shutdown for just two weeks and then the work would resume. As two weeks dragged on into april and onwards it was apparent the work would never resume but by that point I didn't think it was worth it to bill them for the few hours I worked that week.

You probably should file an amended return showing the additional income you failed to include. The failure to bill for the few hours you worked in March was a mistake.

 

[interiorspace]

You probably should file an amended return showing the additional income you failed to include. The failure to bill for the few hours you worked in March was a mistake.

I can file an amended return...as far as I understand it since the check was written in january and cashed in january that would count as proof of self-employment income in 2020 correct? Even if the work being billed for was technically done in late december?

Also, wouldn't this look suspicious as I didn't file an amended return until after the determination despite being accurate?

 

[Zigner]

I can file an amended return...as far as I understand it since the check was written in january and cashed in january that would count as proof of self-employment income in 2020 correct? Even if the work being billed for was technically done in late december?

Also, wouldn't this look suspicious as I didn't file an amended return until after the determination despite being accurate?

You did not "work and have income" in 2020.

 

[quincy]

I can file an amended return...as far as I understand it since the check was written in january and cashed in january that would count as proof of self-employment income in 2020 correct? Even if the work being billed for was technically done in late december?

Also, wouldn't this look suspicious as I didn't file an amended return until after the determination despite being accurate?

Last question first: No. The amended return will not look suspicious if you have proof of a January payment that you mistakenly failed to include on your 2020 return.

Were you certifying with (reporting to) the State every two weeks as required to show you were eligible for benefits?

 

[interiorspace]

Were you certifying with (reporting to) the State every two weeks as required to show you were eligible for benefits?

Yes. I did bi-weekly and weekly certifications (for a time it was bi-weekly only). Every time I said it was due to ""experienced significant reduction in usual or customary services". Which is true, I have had none of that work since march and was last paid with that check in january.

 

[quincy]

You did not "work and have income" in 2020.

He was paid on January 23, 2020. The paycheck date is important.

 

[interiorspace]

You did not "work and have income" in 2020.

I did though. I was paid in january and I was working in march. I would typically work for 4-6 weeks before being paid.

 

[PayrollHRGuy]

You probably should file an amended return showing the additional income you failed to include. The failure to bill for the few hours you worked in March was a mistake.

Then you didn't work in 2020. How much could you have billed them for in 2020?

 

[PayrollHRGuy]

He was paid on January 23, 2020. The paycheck date is important.

I don't think the 1/2020 check is really the problem. It is the lack of any others.

 

[interiorspace]

Then you didn't work in 2020. How much could you have billed them for in 2020?

I did work in march 2020. I was there for several hours on multiple days the literal last couple days before the initial two weeks shutdowns.

I probably could have billed for 6 hours.

 

[quincy]

Then you didn't work in 2020. How much could you have billed them for in 2020?

He worked in December but was paid in late January, which means the income should have been reported on his 2020 return, and he worked in March but did not get paid for the work - this latter fact the most problematic.

 

[interiorspace]

I don't think the 1/2020 check is really the problem. It is the lack of any others.

I typically don't have much work january/feb timeframe anyways. This was the same for prior years. As far as I understand it "independent contractor" does not have a requirement of a minimum time worked in a certain timeframe to be counted as one legally?