Independent contractors and unemployment benefit recipients have something in common when it comes to their taxes. They both need a 1099 form when it comes time to file their state and federal taxes.
If an individual collected any unemployment benefits for any part of 2006, he or she needs to make sure that he or she has a 1099 form. The Indiana unemployment mailed 1099 statements in January 2007. This was sent to anyone who received unemployment benefits last year.
In many cases, those receiving unemployment benefits don’t have taxes taken out the money they receive. So come tax time, both need to pay the taxman. Independent contractors often don’t pay taxes up front on the money they make, either.
A few Indiana unemployment recipients choose to have taxes withheld immediately from their checks. This means that their checks are smaller when they get them because state and federal taxes have already been taken off. But this also means that they will probably not need to pay come tax time. Of course, as every knows, they still need to file a tax return.
Each 1099 statement given to a person who received unemployment benefits in 2006 will show the amount of benefits received. If applicable, it will also show any unearned compensation paid. Deductions such as court-ordered child support or restitution will also be shown on the 1099 statements.
People who haven’t received their 1099 forms can contact a local Indiana Dept. of Labor office. Anyone who hasn’t received a 1099 form, but collected unemployment benefits needs to make sure they have one of these forms. Requested forms are usually received within one week.
If an individual requires 1099 forms from previous years, a request can be made to a local Indiana Dept. of Labor office. The office will be easily able to send the forms. The state also provides complete information on unearned payments to the Indiana Dept. of Revenue and the IRS.
Here’s some good news about Indiana unemployment, finally. According to a recent announcement made by Emily DeRocco, Assistant US Secretary for the Employment and Training Administration of the US Department of Labor.
The initial grant of $500,000 was announced earlier this year. As soon as a detailed plan for the grant funds is written, the balance of the $5 million grant will be released.
In her recent speech, Assistant Secretary DeRocco states, “Strong regional economies that are built on maximizing talent and innovation will be crucial to the nation’s success in the global economy.” With this eye on the 21st century workplace, the US Department of Labor has initiated a program referred to as WIRED. WIRED is the Workforce Innovation in Regional Economic Development program established to provide job training to workers in areas across the nation that have a history of poor economic performance and high rates of unemployment.
The good news for Indiana is a grant totaling $5 million targeted for Southwestern Indiana where economic outlook and employment opportunities are poor. The grant will award an initial investment of $500,000 to begin immediate training efforts. The remaining $4.5 million is to be awarded once a regional implementation plan for the training program has been completed.
The WIRED program has proven success already and the outlook for Southwestern Indiana is optimistic. The WIRED program got its start in 2005 with awards totaling $195 million. The awards were granted to 13 regions throughout the United States. These regions were identified based on competitive information supplied by state governors. The current round of grants is expected to exceed $65 million.
“This regional economic development strategy transcends political boundaries to better leverage a region’s assets to help workers succeed in the 21st century worldwide economy,” according to US Department of Labor Secretary Elaine Chao. “Investing in area workforces through this collaborative approach will boost entire regions’ economic vitality.”
Investing in area workforces through this collaborative approach will boost entire regions’ economic vitality,” U. S. Secretary of Labor Elaine Chao said when announcing a recent Indiana unemployment grant.
Part of the WIRED effort, the recent program includes an Indiana unemployment grant of up to $5 million to train workers in the Southwestern Indiana area. The grant includes an initial gift of $500,000 for training in the region. After a regional implementation plan is prepared, the region will be given an additional $4.5 million grant under the program.
WIRED is a program conducted by the U.S. Department of Labor to improve the economy in troubled regions by training workers. Technically, the program is the Workforce Innovation in Regional Economic Development initiative, although it is almost universally referred to by the acronym WIRED.
The most recent WIRED program of up more than $4.5 million dollars is an Indiana unemployment grant to help workers in Indiana’s Southwestern region. The region has long suffered high unemployment and poor economic performance. WIRED addressed underperforming area economies by training workers. The U. S. Department of Labor recently announced that many Indiana workers are among those to benefit from a grant of up to $65 million.
Secretary of Labor Chao adds, “This regional economic development strategy transcends political boundaries to better leverage a region’s assets to help workers succeed in the 21st century worldwide economy.”
Under the program, the Southwestern area will use the Indiana unemployment grant to improve the area economy by training employees. The first group of WIRED grants awarded $195 million to 13 regions. WIRED has a proven record of accomplishment. The grants are awarded based on a competition involving the state governors. In total, this second round of WIRED grants will exceed $65 million. The WIRED program is an attempt by the U.S. Labor Department’s Employment and Training Administration to help struggling regional economies in several areas.
Businesses can consult the Indiana Unemployment Insurance posters to determine if they are required to pay Unemployment Insurance Tax. There are a variety of ways a business can be subjected to the unemployment insurance program. The typical business is covered if has an employee for some part of a day, in each of 20 weeks in a calendar year; or if it pays more than $1,500 or more in gross wages during a calendar quarter. Agricultural employers are subject to the tax if it has agricultural employees, and pays $20,000 or more in cash wages in a calendar quarter or if they have 10 or more employees for some part of a day in each 20 weeks during a calendar year. Any employing unit liable for FUTA tax in another state is immediately liable when employment starts in Indiana.
Governmental employers are required to participate for services performed by an individual in the employment of the state or any of its instrumentalities. Indiana Unemployment Insurance posters lists exclusions for elected officials, a member of a legislative or judiciary body, a member of the State National Guard or Air National Guard, an employee serving on a temporary basis in the case of an emergency, or an individual designated as a major nontenured policymaking or advisory position.
When there were four or more individuals in employment for some portion of the day in each of 20 different weeks, within the calendar year by a religious, charitable, educational, or other 501-C-3 organization, taxes must be paid even if the service is excluded from employment defined by Federal regulations as a 501-c-3 organization.
Any individual who has hired household help of any kind, and has paid $1,000 or more in wages in any calendar quarter in a calendar year is also required to pay unemployment taxes.
Regardless of the information provided on the Indiana Unemployment Insurance posters, businesses will need to file a Report to Determine Status. When an employing unit is not an employer under any other section of Indiana Code, then the employing unit can elect to become fully subject to unemployment taxes and regulations to the same extent as any other employer.