Treatment of Pandemic Unemployment Compensation and other Unemployment Insurance for CalWORKs

The California Department of Social Services (CDSS) has issued guidance regarding how Pandemic Unemployment Compensation (PUC) and other Unemployment Insurance programs are treated for purposes of CalWORKs.  PUC is the additional $300 per week in Unemployment Insurance benefits in the December, 2020 stimulus package.  For CalWORKs, PUC payments are now exempt for both applicants and recipients.  For CalFresh, PUC payments are exempt from consideration as income or resources for nine months following receipt.

Pandemic Unemployment Assistance (PUA), which is for self-employed workers and independent contractors, is considered income for CalWORKs applicants and recipients.  Pandemic Emergency Unemployment Compensation (PEUC), which is extension benefits after regular Unemployment Insurance or PUA expires, also is considered income for CalWORKs applicants and recipients.

FED-ED is an additional extension of Unemployment Insurance benefits during periods of high unemployment for people who have sufficient earnings.  FED-ED is considered unearned income.  FED-ED benefits are considered income for CalWORKs applicants and recipients.

Mixed Earners Unemployment Compensation (MEUC) is an additional $100 per week in Unemployment Insurance for individuals eligible for Unemployment Insurance and who have at least $5,000 in self-employment income.  MEUC will be considered unearned income when it is issued.  MEUC will be considered unearned income.  MEUC benefits will be considered income for CalWORKs applicants and recipients.

Refugee Cash Assistance, Entrant Cash Assistance and Trafficking and Crime Victims Assistance Program follow the same CalWORKs rules for PUC, PUA, PEUC, FED-ED and MEUC.  (ACL 21-22, February 26, 2021.)

CalWORKs Home Visiting Program questions and answers

The California Department of Social Services has issued questions and answers about the CalWORKs Home Visiting Program.  A few of the questions and answers address services to clients.

Diapers and wipes can be considered a material good that the $500 Material Goods allowance can be used but only when diapers are not already being provided by the CalWORKs program.  Home Visiting Program finds cannot be used to supplant services already being provided through Welfare-to-Work.

Home Visiting Program services can be transferred to another county when requested by the client.  Home Visiting Program services can be terminated in the first county and the client can request services in the new county.  Counties may work collaboratively to continue services for a client upon notification that a client is moving to a new county.  If a county Home Visiting Program is at capacity, they will not be able to take on new clients.  Services will terminate if the client moves to a county that does not have a Home Visiting Program.

Non-needy relatives of foster children are eligible for CalWORKs Home Visiting Program services.

KinGap recipients are not eligible for Home Visiting Program services.  (ACIN I-80-20, November 17, 2020.)

CalWORKs overpayments during COVID-19

The California Department of Social Services has issued reminders of CalWORKs overpayment policies in consideration of COVID-19.  In recognition of the pace of policy changes, and the impact COVID-19 had on county operations and CalWORKs recipients’ inability to complete required reports such as gross monthly income over the IRT, counties must consider these circumstances when establishing overpayments as it is very likely there will be an increase in administrative error overpayments beginning with April, 2020.

Federal individual stimulus payments are excluded from counting as income in the month of receipt and as an asset for 12 months following receipt.

Semi-annual reporting was suspended for March, April, and May, 2020.  However, assistance units who did not make mandatory mid-period reports may be subject to overpayments.  Mandatory mid-period reports are income exceeding the income reporting threshold, fleeing felon status, violation of conditions of probation or parole, and address change.  Unearned income must be paired with earned income to be considered over the income reporting threshold.  Failure to report an address change cannot be based on failure to report an address change.

The $600 per week Pandemic Unemployment Compensation provided through July 31, 2020 is exempt from being considered income for recipients, but not for applicants.  If a family had Pandemic Unemployment Compensation in its possession when they applied and it was not used in determining eligibility there could be total ineligibility and an overpayment.

The Lost Wage Assistance Program issued for the period July 26, 2020 to September 5, 2020 does not count as income for CalWORKs because it is Stafford Act disaster benefits.

Administrative Error overpayments are caused when the county has all information in its possession necessary to make a correct grant determination.

For current CalWORKs recipients, collection can be made by grant adjustment, offset of an underpayment with the overpayment, action on a civil judgment, voluntary cash recovery and voluntary cash offset.

For former CalWORKs recipients, the county cannot demand collection of a nonfraudulent overpayment if the balance is less than $250.  When the claim is more than $250, collection can be made by action on a civil judgment, voluntary cash recovery and voluntary cash offset. (ACIN I-14-21, February 17, 2021.)

Child care portal

The California Department of Social Services (CDSS) provides information regarding the Stage One child care immediate and continuous eligibility monthly data report and online summary screen.  This child care portal contains current individual family data needed to enroll a family in CalWORKs Child Care services or transfer between stages.

Counties are required to share information necessary for the administration of CalWORKs and child care programs with local contractors providing CalWORKs child care services.  Counties must provide limited access to the welfare department computer systems to child care contractors, including a single summary page containing individual family data needed to enroll a family in CalWORKs child care or transfer a family between stages.  Counties must also provide Stage Two contractors a report monthly of all families for whom CalWORKs has been discontinued, the parent/caretaker relative has not received aid for at least one month, and the parent/caretaker relative has children in the home who are eligible for child care services.

Counties must give child care portal access to Alternative Payment Providers and/or other contractors providing CalWORKs child care services.  (ACIN I-20-21, January 29, 2021.)

Suspected Unemployment Insurance fraud and identity theft information

The California Department of Social Services (CDSS) has provided guidance regarding reporting fraud or identity theft when it is suspected that someone else used their information to collect Unemployment Insurance benefits.  In cases where applicants or recipients state that Unemployment Insurance claims have been filed using personal identifying information without their knowledge or consent, counties should help households to report suspected Unemployment Insurance fraud and identity theft.  CDSS has provided a notice to inform clients of resources for reporting suspected identity theft or benefits fraud

In cases of identity theft, counties cannot require any proof such as a police report or documents from the Employment Development Department.  A signed affidavit is acceptable verification for resolving reporting discrepancies.  (ACWDL, January 29, 2021.)