Indiana Small Business Owners Must Fill Out Form for PPP Forgiveness

Date: June 01, 2020

Refusal to Work Form Available for PPP Loan Forgiveness

The Indiana Department of Workforce Development (DWD) says federal guidelines state that individuals must be willing and able to work to receive unemployment benefits. Not returning to work when there is available employment may be considered a “refusal of work” and could potentially disqualify claimants from receiving unemployment insurance benefits.

In order for small business owners to receive full forgiveness of their Paycheck Protection Program (PPP) loan, the business owner will have to notify the state unemployment insurance office if an employee refuses to return to work.

DWD is requesting employers review the below resources to understand the appropriate way to report claimant information to the Department:

  1. 640-WR: Notice of Work Recall Refusal (Employer) (https://www.in.gov/dwd/2406.htm)
    1. This form should be utilized by employers during the COVID-19 Pandemic to report an employee has refused to return to work after a layoff when recalled.
    2. This form was developed by DWD in response to the COVID-19 pandemic. Previously, work recall refusals were reported to DWD using the 640-P. Employers may still report work recall refusals on that form; however, this new form requests more detailed information that will allow DWD to process work recall refusals more quickly.
    3. Employers using SIDES can report a refusal to return to work online. Access the Separation Information exchange, open the claim, choose “Not Listed Above” as the employer’s reason for separation, and attach the document to the response. 
    4. When DWD receives a 640-WR, DWD will put a hold on future UI payments to the employee while we investigate the issue.

To download a copy of the form, click here.

 

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