U.S. Department of Labor News Release (03/14/12)
The U.S. Department of Labor has announced the availability of new tools to help states reduce unemployment insurance payments to fraudsters. DOL is also publishing new materials highlighting what companies can do to avoid the negative tax implications of making improper payments. Taxpaying employers will eventually pay a higher UI rate based upon unnecessary or fraudulent charges. Eventually, the organization’s tax rate will be pushed into the next higher tax bracket because of the cumulative fraudulent/unnecessary unemployment claim charges. DOL is working with states and the work force system to disseminate these materials in public areas and to post them online.
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