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News

State Uncovers $5.2 Million Unemployment Fraud

The Employment Security Department uncovered $5.2 million and prevented another $2.7 million in unemployment-benefits fraud in the second quarter of 2006, according to a statement released yesterday.

The department detected $1.5 million more in fraud from April through June than in the first quarter of the year and increased prevention by $700,000.

“Stopping people from collecting benefits they don’t deserve is one of our top priorities,” said Employment Security Commissioner Karen Lee. “We have added new tools to detect fraud, and have really stepped up our efforts to prevent fraud before any money goes out the door.”

Employment Security uses a variety of techniques to catch people who collect unemployment benefits to which they are not entitled, including cross-matching records with the Social Security Administration, the state Department of Labor & Industries and the state and national lists of new hires. The agency also investigates tips from the public.

The most common types of fraud include failing to look for work, not reporting income and continuing to collect benefits after returning to work.

Lee said that employers can help reduce fraud by unemployment claimants by filing accurate tax and wage reports and by responding to notices from Employment Security, particularly those related to the reason a worker left the job.

Employers are required to report all new employees to the Department of Social and Health Services within 20 days of hire. Proper reporting reduces unemployment and workers’ compensation fraud and helps the state collect child support. Employers can report new hires on the Internet at http://www1.dshs.wa.gov/newhire/ or by calling 800-562-0479, option 3.

On July 1, Employment Security launched a new anti-fraud program that targets employers who try to manipulate their tax rates to pay less than they should.

http://www.tacomadailyindex.com