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Unemployment fraud a burden to employers who pay into trust fund

Unemployment fraud a burden to employers who pay into trust fund

Mitch Coffman
September 4, 2012
Mitch Coffman
September 4, 2012

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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