Ministry of Finance is issuing tax refunds today at Palau High School to those who received Pandemic Unemployment Assistance (PUA) but had taxes deducted from their checks.
Government will be paying back $1.3 million to about 1,200 individuals whose benefit payments were taxed by the government.
Due to vagueness in the language, President Whipps said that some jurisdictions such as Palau, Guam, CNMI and FSM were not clear whether or not they should deduct income tax from the PUA payments. US Department of Labor later clarified that the assistance was not to be taxed and as such, funds that were deducted for taxes and Social Security must be refunded back to the beneficiaries.
The deducted income tax will be refunded back by the national government and the social security deductions will be refunded back by Social Security Administration.
Minister Kaleb Udui Jr. who also sits on the Board of WIOA said that US DOL has confirmed their position that Social Security Administration must also refund back the SS and NHI/MSA deducted from the PUA beneficiaries.
Social Security Administration will need to refund $700,000 to 495 individuals whose Social Security and NHI/MSA insurance premiums were deducted from their PUA benefit payments.
People who are eligible for the tax refund must bring a copy of a valid ID to collect their tax refund. It is also recommended that they bring their check stubs to match the amount refund to what was deducted.

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