[March 5, 2021] CALCULATE BENEFIT AND PROGRAM CODE REMINDERS
If you are in need of assistance to understand which 1099-G form goes with which 2020 benefit program, or if you are looking to better understand how 'Box 1' Unemployment Compensation is calculated, please review the helpful graphics below. These graphics may also be downloaded as PDF forms for review.
- Download 2020 Unemployment Compensation Program Codes
- Downlaod How 2020 Unemployment Compensation is Calculated
[March 4, 2021] REISSUED 1099-G REMINDERS
As claimants begin to receive their new 1099-G forms, the Vermont Department of Labor (VDOL) is reminding Vermonters of the following guidance issued by the Department last week.
- VDOL 1099s were mailed on Monday, March 1. Most claimants will receive their 1099s by Friday, March 5.
- Claimants should wait until they receive all of their 1099-Gs before filing their personal income taxes. Claimants may receive more than one 1099 because they received benefits from multiple unemployment programs.
- If you believe any of the information on your reissued 1099 to be incorrect, please read the details listed through the link below.
- Claimants may now enroll in ID Protection Services through IDX; these are of no-cost to all 2020 Unemployment Insurance claimants (info below).
More details can be found in Email to Claimants #6 (March 4, 2021).
[March 1, 2021] CLAIMANTS BEGIN TO RECEIVE NEW 1099-Gs
With mailing of NEW 1099-G forms completed, some claimants received their documents starting today (Monday). Remaining forms can be expected to arrive over the course of this week.
Important Reminders to Claimants Receiving 1099-G Forms:
- Claimants will receive a 1099-G form for each program they collected benefits from in 2020.
- Regular UI and Pandemic Unemployment Assistance (PUA) 1099-Gs include additional $600 added to weekly benefits from April 4 - July 25.
- Additional 1099-G forms will also be received for Lost Wage Assistance (LWA), Vermont Short-Term Supplemental (VSTS) benefits, and the one-time payment of $1,200 issued by the State on April 20.
- More details can be found in the image below or in the Claimant Pre-1099 letter.
- Use only NEW 1099-G forms when filing your personal income taxes.
- VDOL has worked to ensure information was correct to the best of its ability. However, if information on-file was provided incorrectly, or if claimants have moved or changed their names, the Department has established a process by which claimants may request an update or reissuance of 1099-G forms.
- Claimants may still file their personal income tax return as long as they believe information included in Box 1 Unemployment Compensation, Box 4 and Box 11 withholding amounts, and the Last 4 Digits of Claimant Social Security Number to be correct.
- Claimants are encouraged to sign up for free identity protection services through Identity Theft Guard Solutions Inc. (IDX). Click here to enroll in IDX's identity protection services free of charge.
[February 27,2021] 1099-Gs SENT TO POSTAL SERVICE, SET FOR MAILING
The Vermont Department of Labor (VDOL) announced today, that all new 1099-G forms have been reviewed and printed, and are set for mailing. The State began delivering the 180,000 pieces of mail to the U.S. Postal Service in Essex beginning Friday afternoon, with the last batch being delivered on Monday, March 1st. Claimants can expect to receive their 1099-G forms over the course of next week. Read the full press release by clicking here.
The Department of Labor administered nine different types of benefits through five different unemployment programs in 2020. Claimants can identify the program their 1099-G is for by using the code in the bottom left-hand corner of the tax document.
- 001-UI: This 1099-G represents regular Unemployment Insurance (UI) benefits received in 2020, including extended benefit weeks, and the additional $600 added to weekly benefits during April 4 through July 31.
- 002-PUA: This 1099-G represents Pandemic Unemployment Assistance (PUA) benefits received in 2020, including the additional $600 added to weekly benefits during April 4 through July 31.
- 003-LWA: This 1099-G represents Lost Wage Assistance (LWA) benefits received in 2020. This was a federal program which provided an additional $300 per week to eligible unemployment insurance claimants between August 1 and September 5. This payment was mailed in a check, separate from weekly benefit payments.
- 004-VSTS: This 1099-G represents Vermont Short Term Supplemental (VSTS) benefits received in 2020. This program provided an additional $100 per week to claimants between September 27 and October 31. This payment was mailed in a check, separate from weekly benefit payments.
- 005-TREAS: This 1099-G represents a one-time payment of $1,200 issued by the State on April 20. This was for Vermonters who had filed for unemployment insurance benefits between March 15 and April 4 but had not yet received any benefit payments.
Claimants had the option to have personal income taxes withheld when they enrolled in UI and PUA, however, taxes were not withheld from LWA, VSTS, or TREAS payments. That means claimants who received these benefits will need to pay state and federal income taxes on them.
All 2020 unemployment insurance claimants will receive a letter detailing more information on IDX’s services during the week of February 22. This letter includes instructions on how to activate your complimentary membership. To enroll, claimants will need to have their unique Enrollment Code (provided in letter). Upon receiving the letter, claimants may visit https://response.idx.us/vermont or call 833-726-0943 to enroll using their Enrollment Code.
**Please note that a unique Enrollment Code will be required to complete enrollment in IDX services, which can be found in the letter sent to claimants. See a sample of the letter mailed to all claimants by clicking here.
[February 23, 2021] UPDATE ON *NEW 1099-G MAILING
The Vermont Department of Labor (VDOL) is finalizing validation efforts this week and working with the Department of Buildings and General Services to print and mail new 1099-G tax forms by the beginning of next week to all 2020 unemployment insurance claimants.
Read the full press release on the mailing of New 1099-G forms for unemployment insurance claimants for more informaiton.
[February 17, 2021] RECALL NOTICE BUT NO 1099-G
Please be aware that you may receive a recall letter and return envelope even though you never received an actual 1099 from the Department of Labor. This is likely because your 1099 was stopped before it ever got delivered. Thousands of original 1099 documents were stopped at the various post offices around the state and returned to the Department. Unfortunately, given the volume of returned 1099s there was no quick way to decern between which 1099s were delivered and which were stopped. Because of this, we decided to mail the recall notice to the entire population of people who had a 1099 printed and sent to the post office. This was done out of an abundance of caution to ensure that everyone was provided a secure way to return a Department of Labor 1099 if they received one. If you received a recall notice but did not receive an original 1099, there is nothing more you need to do at this time.
[February 17, 2021] IMPORTANT REMINDERS
- We are still working to validate correct information to mail out new, accurate 1099-G documents to claimants as soon as possible. We expect to have this completed by the end of the month.
- If you received unemployment insurance benefits in 2020, you will receive a 1099-G from VDOL once this process is complete.
- If you filed for benefits in 2020 (regardless of whether or not your information was compromised) you will receive a notice in the mail this week with instructions on how to enroll in identity and credit monitoring services.
- If you received an incorrect 1099-G from VDOL, return envelopes were mailed last week. Once received, please follow the provided instructions and use the included return envelope to mail the document back to the Department.
- To expedite this process, the return envelopes that were mailed are slightly smaller than the 1099-G form. You may fold the document to fit in the envelope as needed.
- Please stay tuned for further updates, as we will provide more information as it becomes available. View our Frequently Asked Questions by clicking here.
[February 12, 2021] RECALL ENVELOPES
NOTICE: Please be aware that the return envelope included in the recall notice is slightly smaller than the 1099 envelopes. Recipients will need to fold the faulty 1099 in order to make it fit into the return envelope. Unfortunately this was necessary in order to automate the mailing of roughly 95,000 recall notifications. Individuals will receive a recall notice and return envelope for every original Department of Labor 1099 they received.
[February 11, 2021] RECALL NOTICE MAILING
This week, the Department of Labor began mailing notices with a self-addressed and prepaid envelope to everyone who received a 1099-G from the Department of Labor.
Please follow the instructions provided in the mailing to return the document, even if you believe the information on the 1099-G you received is accurate so we can validate the information.
You will receive a follow-up letter next week with details on how you can enroll in free identity protection and credit monitoring services.
We know that not all claimant information was compromised, but out of an abundance of caution, we will be offering protection to all 2020 unemployment insurance claimants.
[February 11, 2021] RISK LEVEL
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[February 10, 2021] INDEPENDENT IDENTITY PROTECTION
SPECIAL NOTE: Impacted claimants interested in enrolling in free identity protection services must do so using the State of Vermont's vendor. Claimants will receive a letter from the Department with instructions for how to enroll in identity protection services through IDX under the state contract. This notice will go out this week to claimants. The Department does not have the ability to reimburse claimants for identity protection services that are purchased outside of the IDX vendor agreement and process. Claimants who enroll in protection services through the state's vendor will receive retroactive coverage back to the date of the incident, which was January 29, 2021.
[February 10, 2021] IDENTITY PROTECTION FOR CLAIMANTS
PRESS RELEASE: Governor Phil Scott announced that the State of Vermont will provide a suite of identity protection services to all unemployment insurance claimants who will receive a 2020 1099-G from the Vermont Department of Labor (VDOL). This service is being provided in response to the inadvertent disclosure that occurred on January 29 when VDOL mailed incorrect 1099-G forms to some unemployment claimants
[February 5, 2021] IMPORTANT REMINDERS
We understand how unsettling this situation has been and we are deeply sorry for any undue confusion or harm. We’re hopeful that Vermonters who have received received a faulty 1099-G document from the Department of Labor due to our error, will choose to protect it as if it were their own and return the documents. Vermonters take care of one another, and we need to do that now.
- If you have received a 1099-G from the Department of Labor, please keep it in a safe place until you receive a prepaid, self-addressed envelope from the Department.
- If you believe your 1099-G document is correct, please do not file your taxes. The Department is requesting all documents back so we can be sure you have accurate information.
- The Department is setting up consumer protections, like identity theft and credit monitoring services, those details will be mailed directly to you.
- The Department is validating all 1099-G information to ensure the Department provides claimants with valid and accurate 1099-G documents. You will be notified when the new 1099-G documents are mailed.
- We will continue to provide you with updates.
You can contact the three major credit reporting bureaus listed below at any time and place a temporary freeze on your credit. A credit freeze restricts access to your credit report, which can make it difficult for identity thieves to open new accounts in your name.
- Experian: Enroll online or call 888-397-3742
- Transunion: Enroll online or call 888-909-8872
- Equifax: Enroll online or call 800-685-1111
[February 4, 2021]
If you received a 1099-G from the Department of Labor, please read the following:
- The form you received may contain incorrect or incomplete information and someone else’s personal and private information.
- Please keep those documents in a safe place until you receive a prepaid, self-addressed envelope from the Department.
- Even if you believe your 1099 is correct, please do not use it to file your taxes. The Department is recalling all 1099s to ensure other mistakes have not been made and to protect your identity. Forms will be corrected and reissued by the Department by the end of the month.
- We’re setting up consumer protections for those affected and further details will be mailed directly to claimants.
We understand how unsettling this can be and we’re deeply sorry for any undue harm. We’re hopeful that Vermonters who have received the wrong information due to our error, will choose to protect it as if it were their own. Vermonters take care of one another, and we need to do that now.
[February 3, 2021]
If you have received a 1099-G from the Department of Labor please keep the document until you get further guidance. Claimants will be receiving a self-addressed envelope to return the incorrect 1099. Replacement 1099s will be sent by the Department.
***Please note, these steps apply ONLY to forms sent by the Department of Labor, and not to other State of Vermont 1099s (those sent by Department of Tax, etc.)
In addition to correcting the information, we will make sure consumer and identity protections are in place. More details on who and how to get protected, will be forthcoming.
[February 2, 2021]
On Monday, February 1st at approximately 9:30am the Department of Labor began receiving reports regarding discrepancies involving 1099G tax documents that were issued by the Department for unemployment insurance benefit purposes. Upon further review of the reports that were coming to the Department, we learned that individuals were receiving 1099G tax documents where the name and mailing address did not match on the front of the envelope and in other cases where the name and social security number on the inside did not match the recipient. Additionally, we believe that in certain cases individuals may have received another claimant’s name and social security number.
As of now, the Department believes this issue is specific to the 1099s that were associated with the Lost Wages Assistance (LWA) program and a portion of the Vermont Short Term Supplemental benefit population; however, the Department is issuing a mass recall of ALL 1099s that have been mailed, regardless of program. This is being done out of an abundance of caution. The Department will be mailing further instructions to everyone who received a 1099, along with a self-addressed stamped envelope, to return the incorrect 1099 to the Department.
In addition, recognizing that there is the potential of the improper release of confidential and personal information, the Department has already been in contact with the Vermont Attorney General’s Office in accordance with state statute, and we will be providing all impacted individuals with the option to enroll in ID protection services. This improper release of data did not occur in every instance, but for those cases where an individual’s information was released, they will be provided the opportunity for identity protection. More specific information will be provided in a mailing to impacted individuals along with further instructions.
Next Steps for Individuals
We are still in the midst of investigating this issue, the cause of the issue, and the next steps for impacted individuals, but in the immediate, individuals should do the following:
- If an individual receives a 1099 letter from the Department and the name and address on the front do not match, they should not open the 1099. The Department will mail them further instructions for returning the 1099.
- If an individual receives a 1099 letter from the Department and the name and address on the front do match, but when they open the 1099, the information on the inside does not match their information, they should hold onto the 1099. The Department will mail them further instructions for returning the 1099.
- All claimants will receive a new 1099G tax document from the Unemployment Insurance Division.
- If there is even the possibility that an individual’s confidential information was improperly released, the Department will mail them instructions for protecting their identity and how to enroll in consumer protection services through the Department.
- This issue does not impact an individual’s claim or benefits. This issue is specific to the printing and mailing of 1099 tax documents.
- No incorrect tax information has been shared with the state tax department nor the IRS. The Department will ensure that correct 1099 tax information is sent to the tax department and IRS for proper tax reporting.
- More information will be posted to the Department’s website at labor.vermont.gov.
Compromised Data and Protecting Your ID
The Department is currently working to identify the population of individuals whose identities were compromised, or likely compromised, and once that list is complete, the Department will mail those individuals instructions for protecting their information and how to enroll in ID monitoring services through the Department. In the meantime, below are some easy ways for individuals to prevent and detect potentially fraudulent activity.
Individuals should actively monitor their financial accounts (i.e., bank accounts, credit cards, etc.) to ensure there is no unauthorized activity.
Individuals can choose to contact the major credit bureaus listed below to place a fraud alert or freeze on their credit report/score.
- Experian: Enroll online or call 888-397-3742
- Transunion: Enroll online or call 888-909-8842
- Equifax: Enroll online or call 800-685-1111
Visit IdentityTheft.gov or USA.gov to file an identity theft report or review a comprehensive list of tips for protecting against identity theft.
- Frequently Asked Questions (FAQ)
- How to Return My Faulty 1099
- ID Protection Letter to Claimant from IDX
- Recall Notice to Claimants (February 9, 2021)