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Widespread Fraud Scheme Impacting All State Unemployment Programs

Picture of Heather Palermo Heather Palermo · November 02, 2020

payroll + hr compliance small business accounting business & tax strategy

Widespread Fraud Scheme Impacting All State Unemployment Programs

WARNING

Unemployment fraud is impacting Pandemic Unemployment Assistance (PUA) programs across the nation.

Claimant fraud can include knowingly submitting false information; continuing to collect benefits when knowing oneself to be ineligible; not being able and available to work while certifying for benefits under state law; or intentionally not reporting wages or income while collecting full benefits. Additionally, identity theft may result in unemployment insurance fraud that is not the fault of the employer or the identity theft victim.

Three signs that you and/or your employee may be victim to unemployment fraud:

Your employee did not apply for unemployment, but receives an unemployment debit card.
You claimed pandemic unemployment assistance and receive a notification from PUA similar to this spoofed US DOL email.
You receive an unemployment benefit letter for a current employee, addressed to your business.

It is imperative that you act quickly to report the suspected fraud to your state unemployment department as well as the Federal Trade Commission:

ILLINOIS (IDES) Phone 800.814.0513 or contact them using their online form which can be found here.

WISCONSIN (DWD) Phone 800.909.9472 or contact them using their online form which can be found here.

FEDERAL TRADE COMMISSION (FTC) Visit FTC.GOV for helpful tips and information for protecting yourself against identity theft and what to do when your information is lost or exposed.

Kaizen CPAs works with auto repair shops across the country. We know running a successful shop takes more than keeping the bays full. We help shop owners understand their numbers, stay ahead of taxes, and build stronger, more profitable businesses. Auto repair is at the heart of what we do, but we bring the same practical, hands-on approach to businesses in other industries, too.

YPD HCM is part of the Kaizen CPAs family. YPD HCM helps small businesses manage payroll, HR, and compliance with the right tools and personal, human support—from payroll and tax filings to onboarding, employee management, and more. It’s practical help for the people side of your business, from a team that’s there when you need them.

The information in this article is provided for general educational purposes and reflects conditions as of the publication date. It is not legal, tax, accounting, payroll, HR, or compliance advice. Every business is different, so talk with a qualified professional about your specific situation.