News from the Delaware Department of Labor
- Making Home Affordable Program (MHA)
- EUC Payments to Be Reduced as the Result of the Federal Government’s Sequestration Budget Cuts
- Tier 3 EUC Available Again in April
- 2013 DE Department of Labor 10th Employer Conference
- EUC (Emergency Unemployment Compensation) Program Continued
- Phishing Scam
- FUTA (Federal Unemployment Tax Act) Tax Credit Reduced for CY 2012
- EUC (Emergency Unemployment Compensation) Program Scheduled to End
- Tier 3 EUC (Emergency Unemployment Compensation) to End
- Extended Benefits (EB) Ending
- Continuation of EUC and EB Approved
- Delaware "Triggers" from 20 Weeks to 13 Weeks of Extended Benefits (EB)
The Making Home Affordable Program (MHA) is a program of the U.S Department of the Treasury and the U.S. Department of Housing & Urban Development designed to help homeowners obtain mortgage relief and avoid foreclosure. See specific information about MHA.
The Budget Control Act of 2011 (Public Law 112-25) requires across-the-board budget cuts to many federal programs, including the Emergency Unemployment Compensation (EUC) program. These reductions are generally known as “sequestration” budget cuts. This means that all payments of EUC for weeks that begin on or after April 28, 2013 must be reduced by 12.8% for weeks of unemployment through September 2013. The first payment of EUC that will be reduced is payment for the week ending May 4, 2013.
EUC claimants will be mailed a revised EUC monetary determination providing you with the new remaining entitlement and new weekly benefit amount for your EUC claim. You will be notified if there are subsequent changes affecting your EUC entitlement.
Delaware has “triggered” back on Tier 3 EUC. In accordance with the Middle Class Tax Relief and Job Creation Act of 2012 (P.L. 112-78), up to an additional 9 weeks of “Emergency Unemployment Compensation” (EUC) will be available to unemployed Delaware workers who have exhausted their Tier 1 EUC and Tier 2 EUC benefits. If you are still unemployed, you may be entitled to receive Tier 3 EUC benefits. Tier 3 EUC benefits are payable starting with the week ending April 13, 2013.
You will be mailed instructions and (1) an “Application for Benefits/Tier 3 EUC” form and (2) a “Supplemental Questionnaire for Tier 3 EUC” form that you must complete and bring to your Delaware unemployment insurance local office ( if a Delaware resident) or mail (if a non-Delaware resident) to the Interstate Claims Unit according to the schedule provided below. When you report to your local unemployment insurance office, you must bring two forms of ID, one of which must be your Social Security Card. For specific information about ID requirements, please access “New Identification Requirements” on this website.
If you are a Delaware resident, please report, with your completed “Application for Benefits/Tier 3 EUC” form and “Supplemental Questionnaire for Tier 3 EUC” form to your Delaware unemployment insurance local office between the hours of 8:00am to 3:30pm to file your Tier 3 EUC claim in accordance with the below instructions (Do not report earlier than your scheduled day):
- Report on Monday, April 8, 2013 if the last number of your social security number is 0 (xxx-xx-xxx0)
- Report on Tuesday, April 9, 2013 if the last number of your social security number is 1 (xxx-xx-xxx1)
- Report on Wednesday, April 10, 2013 if the last number of your social security number is 2 (xxx-xx-xxx2)
- Report on Thursday, April 11, 2013 if the last number of your social security number is 3 (xxx-xx-xxx3)
- Report on Friday, April 12, 2013 if the last number of your social security number is 4 (xxx-xx-xxx4)
- Report on Monday, April 15, 2013 if the last number of your social security number is 5 (xxx-xx-xxx5)
- Report on Tuesday, April 16, 2013 if the last number of your social security number is 6 (xxx-xx-xxx6)
- Report on Wednesday, April 17, 2013 if the last number of your social security number is 7 (xxx-xx-xxx7)
- Report on Thursday, April 18, 2013 if the last number of your social security number is 8 (xxx-xx-xxx8)
- Report on Friday, April 19, 2013 if the last number of your social security number is 9 (xxx-xx-xxx9)
However, if you miss your assigned reporting day as indicated above, you should report to your Delaware unemployment insurance local office on one of these days: Monday, April 22, 2013, Tuesday, April 23, 2013, Wednesday, April 24, 2013, or Thursday, April 25, 2013, regardless of the last digit of your social security number.
If you are a resident of a state other than Delaware, please complete the “Application for Benefits/Tier 3 EUC” form and “Supplemental Questionnaire for Tier 3 EUC” that you will be mailed and return both forms by Friday, April 12, 2013 to:
DE Division of Unemployment Insurance
Interstate Claims Unit
P.O. Box 9952
Wilmington, DE 19809
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On May 16, 2013, DOL will host its 10th EMPLOYER CONFERENCE at the CHASE CENTER on the Wilmington Riverfront. WORKSHOP TOPICS include The Affordable Health Care Act; Returning Veterans; DE Workers' Comp Health Care Payment System; Mediation; Workplace Safety; Unemployment Insurance; Understanding accommodations for people with Disabilities; and much more. Visit EXHIBITS; be an EXHIBITOR; tour Delaware's MOBILE ONE STOP; enjoy LUNCH with an ENGAGING guest SPEAKER; and ask questions of DOL SUBJECT MATTER EXPERTS. HR professionals may receive SHRM CREDITS for attending this conference. HEALTH CARE PROVIDERS certified in the DE Workers’ Comp. HCPS may attend the HCPS workshop in lieu of completing the mandatory on-line continuing ed course for their next 2-year cycle. E-Mail DOL_EC@state.de.us for future updates or inquiries.
Carmen Lee-Pow is a highly accomplished leader, communicator and motivational speaker, who has presented professional communication workshops to executive management, corporations, non- profit and private sector companies, such as Delaware Technical College, Public Allies, AmeriCorps of Delaware, New York Chiropractic College, Chamber of Commerce, AstraZeneca-Women in Research & Development and most recently the Mega Bizfest Conference, just to name a few. She inspires audiences with her story of encouragement and motivation
She is a member of Toastmasters International, a worldwide Communication and Leadership organization and holds the highest Toastmasters certification, that of Distinguished Toastmaster. She is also the recipient of Toastmasters highest honor “A Presidential Citation.” As a past District Governor for Toastmasters, she was responsible for over 103 clubs in Maryland, Delaware and North Eastern Virginia. Carmen received several awards for Excellence in Leadership; Education and Training and Marketing. She has had a successful career as the Senior International Life Insurance Underwriter and Trainer with American Life Insurance Company, (ALICO/AIG) during a career spanning 33 years.
She is currently the President of Motivated Communicators, President of the Trinidad & Tobago Cultural Association of Delaware (TTCAD) – a non-profit organization which provides scholarships to children of Caribbean parentage; a board member of the Delaware Nature Society – a non-profit organization that promotes education and conservation of the environment, and mentor for various Toastmasters clubs and members in Delaware. She also plays the steel drums in her band called C&C sounds. Carmen is married to Chan Lee Pow, and is the mother of three and grandmother of four.
Under the provisions of the American Tax Relief Act of 2012, signed into law by the President on January 2, 2013, the EUC Program has been continued for one year. Without this law change, the EUC Program would have ended at the end of 2012.
It is important to note that under the new law the EUC program has been continued with the same Tiers, weeks of potential benefits and unemployment rate triggers for specific Tiers that were in effect on December 29, 2012. No additional Tiers of EUC or additional weeks of benefits have been added to any Tiers of EUC.
Any questions about the continuation of EUC should be directed to the unemployment insurance local office in which the EUC claim was filed.
If you receive an email from “Support Team”
When will the FUTA (Federal Unemployment Tax Act) Tax Credit Reduction take Effect?
Since Delaware had an outstanding federal loan balance to our Unemployment Insurance Trust Fund as of November 11 of this year, a FUTA tax credit reduction of 0.3% is effective retroactive to January 1, 2012 and employer payment is due to the IRS, along with the submittal of Form 940, by January 31, 2013.
Normal FUTA (Federal Unemployment Tax Act) Tax
Employers pay a FUTA tax on the first $7,000 of each employee's annual wages. The FUTA tax is a flat rate of 6.0%, but employers who pay their state unemployment tax timely and in full receive a 5.4% credit. The net FUTA tax for these employers is 0.6%.
FUTA (Federal Unemployment Tax Act) Tax Credit Reduction
Employers are required to pay both the FUTA tax and the state unemployment tax, and they may obtain a credit on their Federal 940 FUTA form for taxes paid to the state. However, the Social Security Act requires a reduction in the FUTA tax credit when a State has outstanding federal loans to its Unemployment Insurance Trust Fund for two consecutive Januarys as Delaware has had. The reason Delaware has an outstanding federal loan balance to our Unemployment Insurance Trust Fund is because the demand on the fund for benefit payments to unemployed workers has exceeded the revenue to the fund from employer taxes. The reduction in the FUTA tax credit is 0.3% for the first year and an additional 0.3% for each succeeding year until the loans are repaid. A FUTA tax credit reduction means an overall increase in the FUTA tax. The increase applies to all Delaware employers who are subject to the State's unemployment insurance tax.
For Delaware employers, this FUTA tax credit reduction results in an additional $21.00 per employee ($7,000 x 0.3% = $21.00) this year and potentially an additional $21.00 in each succeeding year that federal loans to Delaware's Unemployment Insurance Trust Fund remain unpaid.
The additional FUTA tax payment will be used by the federal government to reduce Delaware's Unemployment Insurance Trust Fund loan balance.
For More Informtion
Additional information about paying your FUTA (Federal Unemployment Tax Act) tax can be found at www.irs.gov.
Under the provisions of the Middle Class Tax Relief and Job Creation Act of 2012 (Public Law 112-96), signed into law by the President on March 23,2012, EUC benefits, regardless of the tier, shall not be paid for any week of unemployment after the week ending December 29, 2012.
EUC claimants will not be eligible for a EUC payment for any week of unemployment after the week ending December 29, 2012 even if they still have a balance remaining on their EUC claim. It is important to note that if an individual exhausts all EUC benefits available to them with a payment for a week of unemployment prior to the week ending December 29, 2012, their EUC payments will end at that time.
However, in the event Congress passes and the President signs subsequent legislation to continue the EUC program, the Delaware Division of Unemployment Insurance will notify individuals in writing.
Any questions about the end of EUC should be directed to the unemployment insurance local office in which the EUC claim was filed.
Delaware's three month average, seasonally adjusted total unemployment rate has fallen to 6.9% which is below the 7.0% rate required by the federal government for a State to provide Tier 3 EUC. Accordingly, Delaware will trigger-off Tier 3 EUC effective week ending June 2, 2012 and enter a phase-out period.
Below is how the triggering-off Tier 3 EUC will work and impact unemployed individuals:
- Based on a June 2 trigger-off date, the last week a Tier 2 EUC claimant can exhaust Tier 2 EUC and file a Tier 3 EUC claim is week ending June 23, 2012.
- Tier 2 EUC claimants exhausting their Tier 2 EUC claim with week ending June 30, 2012 and after, cannot file a Tier 3 EUC claim.
- The last allowable new Tier 3 EUC claim date is a Tier 3 EUC claim dated effective June 24, 2012.
- Current Tier 3 EUC claimants, including those filing Tier 3 EUC claims up to Tier 3 EUC claims dated effective June 24, 2012 will be eligible to receive their full Tier 3 EUC claim benefits.
The payable period for EB (Extended Benefits) in Delaware is ending. The last week ending date that EB will be payable is the week ending April 21, 2012. To be in an EB payable period, a State's current three month average, seasonally adjusted total unemployment rate must be at least 110% of the comparable rate in any of the three prior years. Delaware no longer meets the 110% criteria. EUC (Emergency Unemployment Compensation) claims are not impacted by this change.
The U.S. Congress passed and the President has signed legislation (H.R. 3630) to continue the EUC (Emergency Unemployment Compensation) and EB (Extended Benefits) programs. Without this legislation, these two programs would have ended and gone into a phase-out starting February 29, 2012. It is important to note that this legislation does not add any additional tiers of EUC or provide any additional weeks of EUC or EB. Individuals who have exhausted all tiers of EUC and exhausted EB are not entitled to any additional weeks of benefits.The EUC and EB programs are continued through 1/2/2013 and at that time EUC ends with no phase-out, while EB ends with a phase-out.
Below are some important changes:
The 3-month average TUR (total unemployment rate) trigger required for a State to be on certain EUC tiers, effective June 1, 2012 will be:
- Tier 1: no trigger requirement
- Tier 2: 6.0%
- Tier 3: 7.0%
- Tier 4: 9.0%
If a claimant is on a tier of EUC when a TUR trigger to end that tier is reached, the claimant can collect the remainder of that tier, but new EUC claims for that tier cannot be filed.
As of September 2, 2012, the number of weeks available for EUC will be:
- Tier 1: 14 weeks, down from the current 20 weeks
- Tier 2: 14 weeks, no change from current weeks
- Tier 3: 9 weeks, down from the current 13 weeks
- Tier 4: Not applicable as Delaware has already triggered off Tier 4 EUC
If a claimant is on a tier of EUC when the reduction of weeks available for that tier occurs, the claimant can collect the remainder of that tier at the original number of weeks available when they filed their initial claim for that tier. The reduction in weeks would apply only to new EUC claims.
Active Work Search for EUC Claimants:
- All current EUC claimants and all new EUC claimants must be actively seeking work. Under the provisions of the new law, "actively seeking work" means: registering with the Division of Employment & Training, engaging in an active search for work that is appropriate in light of employment available in the labor market, the claimant's skills and abilities, and making the number of job contacts required by the state UI agency.
- All current EUC claimants and all new EUC claimants must maintain a record of their work search activity, including the employers contacted, method of contact, and date contacted.
- All current EUC claimants and subsequently all new EUC claimants must, when requested, provide a copy of their work search activity record to the division.
- A certain number of EUC claimants will be randomly selected by the division each week for an audit of work search activities.
Reemployment Services & Reemployment/Eligibility Assessment Activities for EUC Claimants:
As a condition of eligibility, EUC claimants must participate in reemployment services activities and reemployment/eligibility assessment services activities that shall include:
- Orientation to the services available through One Stop Offices.
- Labor market information.
- Skills assessment.
- Review of eligibility for EUC regarding job search activities.
- These services will be provided through a collaborative effort of the Division of Unemployment Insurance and the Division of Employment & Training.
- H.R. 3630 made no significant changes to the EB program.
- The number of weeks available in Delaware remains at 13.
Delaware's three month average, seasonally adjusted total unemployment rate has fallen to 7.9% which is below the 8.0% rate required by the federal government to remain in a high unemployment period (HUP); i.e. 20 weeks of EB. Accordingly, starting January 15, 2012, the maximum potential entitlement in the EB program in Delaware will decrease from 20 weeks to 13 weeks. The reduction from 20 weeks to 13 weeks of EB will work as follows:
- All EB claimants will have their EB claim redetermined back to no more than a maximum of 13 weeks. These redeterminations will be mailed to all current EB claimants.
- If an EB claimant has been paid more than 13 weeks of EB, the claimant's EB claim will then be considered exhausted and they will not be entitled to any additional EB benefits.
- If an EB claimant has received less than 13 weeks of EB (or their monetary determined maximum of less than 13 weeks) , they can continue to file EB weekly certifications up to the new maximum of 13 weeks (or their monetary determined maximum of less than 13 weeks).
- Any new EB claims filed with an effective date of 1/15/2012 or later will be calculated at a maximum duration of up to 13 weeks.
- All claimants currently on EB and eligible for EB for week ending 1/14/2012 may be paid that week even if it is EB payment 14, 15, 16, etc.; but once week ending 1/14/2012 is paid, their EB claim is considered exhausted.
- All current EB claimants will be mailed an "information sheet" along with their EB monetary redetermination that explains the decrease from 20 to 13 weeks of EB.