Friday, March 19, 2021

What Good Is Reporting Unemployment Fraud if They Don't Act On It?

Back in June 2020 someone placed a false unemployment insurance request under Tash's name.  They got the home address right, but interestingly enough the fraudster changed her middle initial.

On June 6 we received a letter about the unemployment request from UIA asking for verification.  That very same day we reported it as identity theft to UIA on their online system for fraud reporting as she never has made an unemployment claim.

Nothing further came of it, until yesterday when we got another notice from UIA that her benefits are apparently being extended and she will now get even more unemployment money under the .

Again, she never applied for Pandemic Unemployment Assistance, and we've never received any of the money, but it seems someone else sure has gotten it likely for over a year.

So let's see, UIA apparently ignored the need for a response to their verification of claim form, then they ignored the fraud report, and they still apparently seem to have allowed the false claim and are sending the funds off to somewhere.

Given the extensive fraud going on, including over $1 Million in false claims by a UIA state employee, and over 100,000 false claims one would think they would quickly handle a report of fraud, but apparently not.

Oh, and who is going to pay for this fraud - why the businesses that employ people in Michigan of course!

As seen on the UIA's website: 

The Unemployment Insurance Trust Fund balance is below $2.5 billion. As a result, the taxable wage base for the 2021 calendar year is $9,500 for all contributing employers. 

 (That's a nice increase of 5.55% in the base amount from last year).

Yep, a lot of that trust fund is being drained by this fraud and government inefficiency if not outright corruption.  So of course, businesses not responsible for the fraud (not to mention our Governor's lockdown policy that also led to massive unemployment) will now have to pay a higher rate to make up for it.

On top of it all, their fax number for reporting fraud is not working today.  Perfect. Just sent it in via their electronic reporting system, same as in June, but since that didn't get anywhere then, so I doubt this repeated fraud report will either.


Nuke Road Warrior said...

Actually, no business pays taxes. Taxes are an expense of doing business and are passed on to the customer just like rent, utilities, etc. When Democrats say "no one making less than $400,000 will pay a penny" when talking about tax increases, they are flat out lying. Everyone will pay higher prices for goods and services to cover the expense of higher taxes.

Aaron said...

Nuke Road Warrior - in essence that's true to an extent but it does still affect the business' bottom line and profitability. As a business owner get to do the paperwork and send in the UIA payments. Since I'm the sole employee its not like I can pay myself less, and it's hard to get a rate increase to clients right now given the economy due to UIA taxes being increased.