As if last year was not enough, we have started this year off with fun in the unemployment world. We have been seeing an increased number of calls about fraudulent unemployment claims again. Some are related to the 1099s that have been received in the mail. Some are because fraudulent claims are starting to get filed again. Business owners, who have been hit hard enough throughout the pandemic, are struggling to keep up with this new round of claims. The unemployment department has obviously been greatly affected by this as well and they are working diligently to get caught up.
Did you know that failing to respond to these claims can cause problems down the line? For one reason or another some claims were not reported as fraudulent when they started arriving last year. Maybe it was because so many were coming in and some of the fraudulent claims got missed. Maybe it was a choice because reporting the fraud seemed like an impossible endeavor.
The problem is that if fraudulent claims went unreported the wages were more than likely still getting paid out. Fast forward to today. This creates trouble for those trying to file taxes for 2020. If you received a 1099-G for unemployment benefits that you did not file for nor receive, you understand this problem. If you find yourself in this position, you can request a 1099-G correction from DETR. It also creates trouble for those who handle the accounting for unemployment claims and potentially effects the employer’s tax rate.
Even if the claim was filed last year, follow the steps provided by DETR to ensure notification to the proper authorities. This will aid in the investigation of the fraudulent claims and getting the issue corrected. Both employers and employees can and should report the fraudulent claim.
We have helped many employers with fraudulent claims as well as the claims that were legitimate. We have yet to see the full impact of what this will do to our state unemployment system, but we are monitoring it closely.
Participants in our unemployment program have grown as navigating the claims, tax notice, and quarterly reports this last year has been daunting for many employers. The unemployment insurance process can be complex and represents a considerable risk to a company’s bottom line. Instead of facing this risk alone, Nevada employers can turn to an experienced provider of unemployment insurance administration. When you choose to work with NAE, you gain an experienced partner that will support you through every stage of the unemployment insurance process. Employers interested in more information about our unemployment program should contact us at info@nevadaemployers.org or (888) 398-8092.
