Unemployment fraud a burden to employers who pay into trust fund

The state of Idaho is aware of the reality of fraudulent unemployment claims and has a program in place to deal with the millions of dollars in unfair claims, says a story in the Idaho State Journal.

The state has a collections effort to recover fraudulent payouts, resulting in almost $25 million recovered in the past five years. However, there is another $20 million that the Idaho Department of Labor is hoping to recover.
Employers pay into the unemployment trust fund. Therefore, payments made to individuals not entitled to benefits is an added cost to employers, with employers now paying in at the maximum rate allowed by law. The state’ s payment compliance officer calls the fraudulent claims “stealing.”

 

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One thought on “Unemployment fraud a burden to employers who pay into trust fund

  1. Lawerence Edwards says:

    the department of labor is an inefficient operation at best. A branch of the dept of labor reviews initial social security disability claims and appeals. They turn down over 80 % of applications. If they ran the unemployment side the same way: no one would get unemployment. As a former employer of over 20 years and my experience with them, I don’t hold much of an opinion of them. The figures of fraud are unbelievable amounts.