Employer Consequences of UI Program Violations

Improper payment of benefits is often the result of inaccurate or insufficient information available to determine a claimant’s eligibility for benefits claimed.

Employers pay for these improper benefits through higher taxes.  In 2010, American employers faced an estimated $6.86 billion in additional UI costs due to improper payment of UI benefits.

Employer consequences of UI program violations include:

• Personal liability of corporate officers for willfully failing to make UI payments or not submitting information and reports as required.
• Increased employer UI taxes.
• Penalties for late reports and interest charges for late payments.
• Possible inspection by IDES Field Auditor.
• Time off from work to attend mandatory appeal hearings.

Be an active partner with IDES by complying with the following employer requirements:

• Maintain accurate records of services performed by employees
• Properly classify individuals who perform services as employees versus contractors, per UI Act definitions
• Accurately and timely submit quarterly wage reports and pay UI contributions
• Report all new and rehired employees to the State Directory of New Hires by the due date
• Provide complete and accurate employer separation information
• Respond to request for verification of weekly earnings
• Understand employer responsibilities under the UI Act IDES has data sharing agreements with other state and feral agencies

Questions?  Call IDES Employer Hot Line at: (800) 247-4984