State receives $1.2M to combat unemployment fraud

HONOLULU — The state Department of Labor and Industrial Relations announced it was awarded $1,2115,000 from the U.S. Department of Labor to combat fraud in the Pandemic Unemployment Assistance and Pandemic Emergency Unemployment Compensation programs.

The federal agency provided funding to the first 28 of the states and territories to apply, and will assist them with administrative expenses incurred from implementing the new, identity-verification requirement for the PUA program and/or assist with enhancing existing identity-verification tools and procedures.

“We quickly acted to obtain this funding, as our teams are battling UI fraud on all fronts as we continue to build out the many new programs implemented by Congress last year, particularly the Pandemic Unemployment Assistance program,” said Anne Perreira-Eustaquio, DLIR Director.

“We are asking Hawai‘i residents to be vigilant of their credit information and help us combat the fraudsters who are unlawfully taking funds from the UI program,” she said.

”This is a critical issue that is plaguing labor departments across the United States involving local, state and even international criminals at times.”

Since the enactment of the Coronavirus Aid, Relief, and Economic Security Act of 2020, state unemployment-insurance programs have struggled to balance enormous workloads while simultaneously implementing and administering new programs for workers typically not eligible for benefits.

Amid these challenges, criminal organizations have tested the integrity of individual state unemployment systems, quickly exposing vulnerabilities. In recent months, state unemployment programs have detected significantly more fraudulent attacks, while new schemes emerge daily.

The department has issued Form 1099-G that includes the amount of benefits paid and other information to meet federal, state and personal income-tax needs for the tax year. The DLIR has not discovered fraudulent or inaccurate 1099-Gs and notes the following:

• The Federal Pandemic Unemployment Compensation program paid eligible claimants up to $10,200;

• The Lost Wages Assistance program paid eligible claimants up to $1,800 with no ability to have taxes deducted;

• PUA benefit amounts are not available in the UI portal;

• Taxes for PUA claimants, combined PUA/UI claimants and LWA-eligible claimants were not withheld from any benefits received. Individuals who received benefits under these programs are responsible for the payment of any applicable federal and state income taxes.

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  1. randy kansas February 21, 2021 6:55 am Reply

    are we getting more help, or did it all stop in January ?

  2. Taxi February 21, 2021 8:50 am Reply

    If the unemployed have to pay tax they can ill afford to pay, would it be better to take the tax out before sending out the unemployed or PUA CHECK.

    So the note that comes with the check could say: Here’s your $1,000 unemployment check, please kindly note that the check is minus the $333, or 1/3, for State and Federal taxes needed to pay the giverment workers salaries while they send out your chiseled paycheck.

  3. I saw a Vampire once February 21, 2021 2:51 pm Reply

    If you’re lazy like athletics and go by hearsay and what they read every now and then, they might have been awarded a fraud payment. Like FEMA or some unemployment check when they got left off the lineup at their job. I like democracy. I can see myself as a communist to some degree. I’d be on a truck with a tanker or a bazooka in my hand ready to use it on anyone. They men are giving out ration foods to the community every afternoon. It is 4:00 pm and time to do a work. They do this every day. That’s communism. I’m part of a team of people doing good deeds. The reason why i’m holding a bazooka is because the government ordered it. They say I’ll needed it. There may be thieves coming to steal extra food. Well, If I was going to use it, I’d fire the whole bazooka straight at their vehicle and make sure they all get blown to pieces. But that’s in Russia, and it is called communism.

    But we’re in America. And it’s called capitalism. And for profits. And freedom to work. That is the difference. Why was this checks a fraud? Nobody has any pay. Just only the few.

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