NC seeks payback of jobless checks for furloughed workers

Posted December 4, 2013

— Federal workers who received unemployment benefits from North Carolina during the partial government shutdown in October will have to settle up soon or risk an extra tax bill.

That was the word Wednesday from Assistant Commerce Secretary Dale Folwell, head of the Division of Employment Security.

"We're looking at somewhere between 550 and 700 people" who filed for benefits while they were furloughed, Folwell said.

Not all claimed or received jobless checks during the shutdown. Those who did, however, are now required to return the money to the state because Congress approved back pay for the furlough, he said.

"It's important for them to get this cleared up in the next week because we're starting to generate our 1099 forms," he said, referring to the IRS form used by the state to report benefits it pays out during the tax year. 

Any federal workers who haven't yet reimbursed the state yet will receive a 1099 form for benefits they received. That means they'll have to pay income taxes on the benefits – even though they'll still have to give that money back to the state.

"I think the last thing a federal employee needs is for us to send them a 1099 form for income that they know they're going to have to pay back," Folwell said. "It's very important for these federal employees to get this money back to us as soon as possible."

Folwell said he'll be sending out letters to affected workers this week, urging them to get their repayments in quickly.

The DES has also added a new feature to make repayment easier: the agency is now accepting credit card payments online, he said.


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  • warrcorick Dec 8, 2013

    People? People? People?

    Why do we have to go thru all of these undo changes every couple of years because you vote for the politicians(REPUBLICANS) who only care about the bang in their buck. It actually speaks volumes to your own character when you support those with a history of economically sucking the lives out of the working citizens. I actually have a certain level of respect for the way they lure you in, then crush you like roaches. I have less respect for their voters, because you get what's coming to you, then you complain. Get this - they are talking to you also. Can't you feel it. Why were these federal workers applying for benefits after only a few weeks without pay? Contrary to talk, they needed it.

  • warrcorick Dec 7, 2013

    Heel Tarr!!

    The backward state! It is so good to hear so many(50+percent) have learned their lesson about supporting a wealthy agenda while working for a wages. You(VOTERS) hold the power to prosperity in your future. Use your power(VOTE) to correct your mistakes. VOTE responsibly.

  • DontVote4LiarsCheatsOrThieves Dec 6, 2013

    wa4mjf - "Thought that was for folks with no job."

    Because legislators passed a quick law which made them eligible. For that period of time, they were basically laid off, and laid off workers qualify for unemployment benefits, not just those with no job at all.

  • DontVote4LiarsCheatsOrThieves Dec 6, 2013

    xylem01 - "North Carolina would get $5.7 billion in Medicaid money; $1.3 billion in federal highway funds and $4.6 billion in defense contracts if the legislature would have expanded Medicaid."

    Which makes it pretty obvious that McCrory and his cronies failed at Economics when they were in school.

    Sorry I voted for the clown.

    Won't do so again.

  • DontVote4LiarsCheatsOrThieves Dec 6, 2013

    At Christmastime...sigh

    I know how they feel though. Our store chain just put a notice by our time clock that our paycheck due to be paid 12/25 wouldn't be paid until 12/26 because of the holiday.

    I didn't even know that was legal. I thought there were laws which said pay on published paydays couldn't be paid later than that published payday.

    Not so??? Anyone know???

    So now the company gets to use OUR hard-earned money and interest for two days (24th and 25th) because of this. That not only shows a shaky financial situation, but it shows a total lack of employee concern and also bad management, because most likely many of the store's employees would spend at least some of that money right there in that store.

  • xylem01 Dec 5, 2013

    North Carolina would get $5.7 billion in Medicaid money; $1.3 billion in federal highway funds and $4.6 billion in defense contracts if the legislature would have expanded Medicaid.

  • joefurloughski Dec 5, 2013

    I was furloughed. Spent my time at Myrtle Beach riding waves on my boogie board. Glad I did not waste time with unemployment benefits. However, furlough during the sequester was not back paid. Cost me 11 days of pay, but whatever. Good practice for my retirement.

  • goldenosprey Dec 5, 2013

    True, they should not double dip, but at the onset of the shutdown, there was no telling how long it would last, so I don't fault the workers for filing.

  • Danny22 Dec 5, 2013

    they should pay the money back.

  • xylem01 Dec 5, 2013

    Pay the tax!