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Rising Trend Of Identity Fraud in Unemployment Claims: How To Protect Yourself

Thu, 30 Mar 2023 21:12:12 GMT

The occurrence of Unemployment Identity Fraud is increasing rapidly . This type of fraud involves the use of someone else’s personal information by criminals to unlawfully receive unemployment benefits. This fraudulent activity is often referred to as “Claim Hijacking” or “Claim/Account Takeover,” where the fraudsters use stolen information to log into the victim’s unemployment account and steal their rightful benefits.

Individuals who are victims of unemployment identity fraud may only become aware of the situation when they receive unexpected mail, such as a notice from a state unemployment agency or a state-issued 1099-G tax form, which reports unemployment benefits that they never requested or received. In some cases, those who have filed for unemployment benefits may realize that they have fallen victim to “Claim Hijacking” or “Claim/Account Takeover” when they suddenly stop receiving their payments, and they notice that the bank account or address information on their unemployment claim has been altered without their consent.

Here are some warning signs that may indicate you have been a victim of unemployment identity fraud:

• Receiving mail from a government agency regarding an unemployment claim or payment, even though you have not recently filed for unemployment benefits.

• Receiving a 1099-G tax form showing unemployment benefits that you never requested or received.

• Receiving a notice from your employer while still employed that they have received a request for information about an unemployment claim in your name.

• Finding out that your unemployment payments were sent to a different account or address without your authorization.

If you suspect that you have become a victim of unemployment identity fraud, report it to the state where the fraudulent activity occurred. Each state has its own set of requirements and processes for investigating identity fraud, so make sure to follow all the instructions provided by the state. Additionally, it is crucial to check your credit report for any unauthorized lines of credit opened and suspicious activities.

How to Respond to IRS Letter 226J

lindsay@oncentive.com (Lindsay Morton) — Thu, 30 Mar 2023 21:12:10 GMT

Did you receive a 226J IRS letter? Are you asking yourself why did I receive this? How do I respond? It is important to understand why your received the letter and how to properly respond to the letter.

What is a letter 226-J Letter?

A Letter 226-J is the initial letter issued to Applicable Large Employers (ALEs) to notify them that they may be liable for an Employer Shared Responsibility Payment (ESRP). The determination of whether an ALE may be liable for an ESRP and the amount of the proposed ESRP in Letter 226-J are based on information from Forms 1094-C and 1095-C filed by the ALE and the individual income tax returns filed by the ALEs employees.

Understanding Why Unemployment Benefits Are Denied: Common Reasons Explained

Thu, 30 Mar 2023 21:12:08 GMT

What is unemployment insurance?

Unemployment insurance provides financial assistance to individuals who lose their jobs through no fault of their own. In accordance with federal guidelines, every state offers unemployment insurance benefits to eligible individuals. However, not all unemployed individuals qualify for these benefits. It is the responsibility of the employer to inform the state whether or not an unemployment insurance claim is warranted.

What qualifies a terminated employee to receive unemployment insurance?

Employers pay into the federal and state unemployment insurance funds, which are used to provide financial support to eligible individuals requesting the unemployment insurance benefit. Eligibility for UI benefits can be established in several ways, such as in cases of company reorganization, job redundancy, or seasonal or temporary employment contracts ending. If an employer reduces an employee's hours or a temporary layoff is caused by a natural disaster, the employee may also qualify for UI benefits.

What disqualifies terminated employee?

Nonetheless, some individuals may not be eligible for unemployment insurance. For example, the length of an individual's employment with a company and their earnings during that time can disqualify them. Additionally, non-W2 employees, such as contractors or freelancers, are not eligible for UI benefits through the employers they have serviced.

When an individual applies for UI benefits, the state agency reviews their application and may automatically deny benefits based on the individual's employment history, earnings, and type of employment. There are also cases where individuals may not qualify for UI benefits, such as voluntarily leaving their job or being terminated due to misconduct. In such cases, employers need to address state claims requests that they believe do not qualify for UI benefits.

Employers must recognize that UI claims are not just "the cost of doing business." An employer's UI tax rate is the only tax rate that can be controlled by responding to state claims. Over time, the payout of UI claims to former employees can raise an employer's UI tax rate, which can affect the businesses bottom line. Thus, effective claims management is critical. A team of UI claims management specialists can help employers stay compliant with state nuances, protect their bottom line, and focus on their present employees.

Tips to Avoid Form I-9 Compliance Violations

lindsay@oncentive.com (Lindsay Morton) — Thu, 30 Mar 2023 21:12:05 GMT

Tips for ensuring compliance and minimizing your risk of lofty Form I-9 fines & audits.

The Immigration Reform and Control Act of 1986 was introduced almost four decades ago. However, many employers still face challenges in avoiding Form I-9 compliance violations and fail to understand the potential impact on their businesses. Negligence can result in a broad range of I-9 compliance violations, leading to costly penalties imposed by the U.S. Immigration and Customs Enforcement (ICE).

Establishing a Detailed and Comprehensive Policy:

Immigration compliance is essential for businesses to prevent costly errors, improve I-9 administration, and minimize the risk of future violations. Therefore, it's essential to establish a detailed and comprehensive policy and adhere to it.

Technical Form I-9 Compliance Violations:

Inaccuracies in maintaining Form I-9 administration can lead to warnings, administrative fines, penalties, and even criminal prosecution. ICE may identify technical and substantive violations, which can happen due to errors or omissions in Form I-9 administration.

Substantive Form I-9 Compliance Violations:

Substantive violations are more than omissions, and their correction may not be possible. They may occur when the employer fails to prepare or present the I-9 on time, neglects to sign or date the attestation or document, or fails to secure a proper List A document or proper List B and List C documents.

Non-Compliance Leads to Penalties:

The ICE increased the scope and frequency of I-9 inspections, resulting in civil and criminal penalties for violations. The fines range from $272 to $2,701 per violation for I-9 paperwork violations, and the penalty increases with each repeated violation. Employers may also face higher fines if they knowingly hire or continue to employ workers without work authorization.

How to Remain Compliant:

To ensure compliance, employers need to establish and maintain effective I-9 policies, use E-Verify, and prepare for strict ICE inspections. Automating the process through a compliant I-9 software like Clear I-9 can minimize risk by monitoring employment authorization expiration dates, storing I-9 forms, and utilizing E-Verify in a secure way.

Employers need to take Form I-9 compliance seriously to avoid costly penalties and criminal prosecution. By adopting a digital solution and following the regulations updates, employers can avoid both common and complicated Form I-9 compliance violations and improve their operations, securing significant savings.

Winning An Unemployment Hearing: Avoid These 4 Common Employer Mistakes

Thu, 30 Mar 2023 21:12:04 GMT

Employer Missteps That Can Cost You an Unemployment Hearing

The unemployment compensation program offers employees who lose their jobs through no fault of their own the opportunity to claim UI benefits for a limited period. This program helps them cope with financial difficulties while they search for another job. Employers need to protest and contest claims filed by employees who were separated for reasons within their control to ensure their unemployment tax rate remains as low as possible. An unemployment hearing can be a challenging experience for employers, involving a former employee who may fabricate stories and an unemployment hearing officer who may seem biased towards the claimant.

Unemployment is a pressing issue that requires employers to avoid making common mistakes that can result in an unfavorable decision from an unemployment hearing, even in cases that appear to be open and shut. Here are four common employers employers make that can lead to an unfavorable outcome in an unemployment hearing.

Providing Weak Testimony

This is the most common error that employers make. It is crucial to have witnesses with firsthand knowledge of the events that led to the employee’s separation. Sometimes, employers may send a human resources representative to the hearing because they discharged the employee or conducted an investigation into the matter. However, unless they witnessed the incident or the employee admitted their guilt to them, their testimony will be considered hearsay. In such cases, the employee's testimony will carry more weight in the hearing officer’s decision.

For instance, let’s say your employee worked as a security guard on the night shift in a hospital. One night, his supervisor found him sleeping on duty, which is against company policy. Charlie was fired, and he filed a claim for unemployment benefits. The employer protested with a detailed account of the incident, including a written statement from the site supervisor. The employee denies sleeping on the job during the hearing and is usually found eligible for benefits as the site supervisor is not present to provide firsthand testimony.

Omitting Relevant Details

Employers sometimes answer only the questions asked without providing much detail during the hearing. However, providing specific details about what happened is critical to winning the case. Unemployment hearing officers prefer specifics and firsthand testimony. Therefore, employers should provide important details to fully describe what occurred, including the time, place, and nature of the incident.

Disorganized Testimony

Employers must present their testimony in a coherent and organized manner. The hearing officer may not have reviewed the information in the state’s file and may be starting with a de novo hearing. The employer must provide specific dates of incidents and warnings for the hearing officer to make an informed decision.

Failing to Prepare Adequately

Employers who do not prepare adequately for an unemployment hearing are setting themselves up for failure. Employers should gather all relevant evidence and documents, prepare their witnesses and ensure they have firsthand knowledge of the events, and rehearse their testimony. Adequate preparation can help the employer present a clear and coherent case that is likely to result in a favorable outcome.

In conclusion, the unemployment insurance program is essential for employees who lose their jobs through no fault of their own. However, employers must be proactive in contesting claims filed by employees who were separated for reasons within their control. By avoiding common mistakes, such as weak testimony, omission of relevant details, disorganized testimony, and inadequate preparation , employers can increase their chances of winning an unemployment hearing. Working with a third party administrator like Unemployment Tracker can help you throughout the entire hearing process for a favorable outcome. Unemployment Tracker has helped clients win 92.6% of all claims hearings and 98.7% of protests.

Form I-9 Fines Increase Yet Again Due to Annual Inflation

lindsay@oncentive.com (Lindsay Morton) — Thu, 30 Mar 2023 21:12:02 GMT

Form I-9 fines have increased yet again due to inflation. Effective as of January 15, 2023, the increase in penalties relates to violations assessed on or after January 13, 2023. The U.S. Department of Labor (DOL) published this rule to adjust for inflation the civil monetary penalties assessed or enforced by the Inflation Adjustment Act.

The Inflation Adjustment Act requires the Department to annually adjust its civil money penalty levels for inflation no later than January 15 of each year.

Here's a summary of how fines have increased:

Minimum Substantive Form I-9 Violations (1st offense) have increased from $252 to $272 per form.
Maximum Substantive Form I-9 Violations (1st offense) have increased from $2,507 to $2,701 per form.
The penalty for knowingly employing undocumented workers (1st offense) now ranges from $679 to $5,404 .

More information can be found in the Federal Register publication here .

As Form I-9 fines continue to increase it's important for every U.S. employer to ensure that stay on top of Form I-9 compliance requirements. Even though you may be juggling several HR and staffing priorities, falling behind on Form I-9 and E-Verify regulations may be something that your organization can't afford.

Examining the Current State Of Unemployment Analyzing The Recent Increase in Weekly Jobless Claims

Thu, 30 Mar 2023 21:12:00 GMT

The number of Americans filing for unemployment benefits increased beyond expectations. However, the underlying trend continues to indicate a tight labor market. Despite growing economic headwinds from the Federal Reserve's interest rate increases, the jobs market has remained resilient.

Last week, the Labor Department reported that initial claims for state unemployment benefits rose by 13,000 to a seasonally adjusted 196,000 for the week ended Feb. 4. This was the first increase in claims since the second to last week of December. However, the four-week moving average of claims fell by 2,500 to 189,250, the lowest level since last April.

Despite high-profile layoffs in the technology industry, as well as the interest rate-sensitive finance and housing sectors, claims have remained low. This is because most companies, especially in the technology industry, over-hired during the COVID-19 pandemic. Small businesses, on the other hand, continued to seek workers.

There is anecdotal evidence that companies are generally reluctant to lay off workers after experiencing difficulties recruiting during the pandemic. Workers remain scarce in some industries, and there were 1.9 job openings for every unemployed person in December. However, some services businesses in January reported they were "unable to hire qualified labor."

Economists speculated that severance packages were delaying the filing of unemployment benefits claims, while the abundance of vacancies made it easier for laid-off workers to find jobs. Applying the average seasonal factors for the prior two years with the same calendar configuration as 2023 would put claims at 210,000 in the latest week and a four-week average of 200,000.

Nonetheless, this would still be a low reading on claims and indicate that either involuntary separations remain low and/or those who lose their jobs are quickly re-employed elsewhere. The claims report also showed that the number of people receiving benefits after an initial week of aid, a proxy for hiring, rose 38,000 to 1.688 million during the week ending Jan. 28.

Lower layoffs have been a major contributor to strong job gains. The government reported last Friday that nonfarm payrolls surged by 517,000 jobs in January, the most in six months, after rising by 260,000 in December. The unemployment rate fell to more than a 53-1/2-year low of 3.4% from 3.5% in December.

In conclusion, the management of unemployment claims is a critical aspect of the current economic climate. While the rise in unemployment claims may be a cause for concern, the underlying trend continues to point to a tight labor market. The low level of claims is an indication that involuntary separations remain low, and those who lose their jobs are quickly re-employed elsewhere.

2023 ACA Reporting: Changes Employers Need To Know

lindsay@oncentive.com (Lindsay Morton) — Thu, 30 Mar 2023 21:11:53 GMT

ACA Reporting Standards & Deadlines Change in 2023

As an employer, it's crucial to stay informed about changes to the Affordable Care Act (ACA) reporting requirements. With this in mind, we've compiled some important updates for 2023 that you need to be aware of to ensure compliance.

First and foremost, the deadline for submitting Forms 1094-C and 1095-C to the IRS has been extended to March 2, 2023. This deadline applies to both electronic and paper filing. While this is good news, it's important to remember that the extra time shouldn't be wasted. Use it to double-check your reporting and ensure that all information is accurate and complete.

Another notable change is the elimination of offer of coverage code 1G. Previously, this code was used to indicate the offer of COBRA continuation coverage. Moving forward, employers should use a different code for this purpose. This change aligns with the IRS's goal of streamlining and simplifying ACA reporting.

There are also updates to the forms themselves. The 2023 version of Form 1094-C includes a new checkbox for employers to indicate if they are filing for a short tax year. This change applies to employers who changed their tax year during 2022.

In addition, Form 1095-C now includes a new code, 1J, which is used to report the conditional offer of coverage to a spouse. This code is used when the employee is offered coverage that is conditional on the spouse not being eligible for employer-sponsored coverage.

It's worth noting that the ACA reporting requirements can be complex, and noncompliance can result in significant penalties. It's important to stay up-to-date on any changes and to ensure that your reporting is accurate and complete. If you have any questions or concerns about ACA reporting, consider seeking professional advice.

In conclusion, it's crucial for employers to stay informed about changes to ACA reporting requirements. With the deadline extension and updates to codes and forms, it's important to review your reporting procedures and make any necessary updates to ensure compliance. By staying informed and proactive, you can avoid costly penalties and ensure a smooth reporting process.

Learn more on the SyncStream blog.

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Why Brokers Need To Partner With An ACA Compliance Tool

lindsay@oncentive.com (Lindsay Morton) — Thu, 30 Mar 2023 20:58:00 GMT

Offer Clients Peace of Mind by Adding ACA Compliance to your Client Offering

As a broker, you have a crucial role in ensuring your clients' compliance with the Affordable Care Act (ACA). However, navigating the complexities and ongoing changes to the ACA regulations can be challenging. Fortunately, there are ACA compliance solutions that can help streamline the compliance process for you and your clients.

What is an ACA Compliance Solution?

An ACA compliance solution is a software tool that provides your clients with the necessary resources and tools to stay compliant with the ACA regulations. The solution may include an online portal that enables clients to upload required data, monitor their compliance status, and generate essential reports.

As a broker, you also benefit from the ACA compliance solution. The solution should offer you the ability to monitor your clients' compliance status and receive alerts in case of any compliance issues. This way, you can proactively address any potential compliance concerns before they become bigger problems.

Why is ACA Compliance Important for Insurance Brokers?

The Affordable Care Act (ACA) was enacted in 2010 and is crucial for brokers who specialize in group health insurance. This is due to the Employer Mandate, which requires Applicable Large Employers (ALE) with 50 or more full-time employees or equivalents to offer affordable health insurance that meets minimum value standards to at least 95% of their full-time employees and dependent children up to age 26.

For health insurance to be considered affordable, an employee's contribution for employee-only coverage should not exceed 9.83% of their household income in 2021. A plan meets the minimum value requirement if it covers at least 60% of the cost of covered services such as deductibles, copays, and coinsurance.

Non-compliance with the ACA can result in penalties from the IRS, which may exceed $200 billion for liable ALEs over the next decade. This is why many employers seek guidance from their benefits advisor to ensure they comply with the law.

Since the Employer Mandate was introduced in 2015, ALEs have relied on their brokers for advice, updates, strategies, and technology to stay compliant. Brokers play a critical role in helping ALEs complete ACA reporting and ensure they offer affordable health coverage that meets minimum value standards.

Non-compliance with ACA reporting can result in employers receiving Letter 5699, and failing to comply with the Employer Mandate can lead to a proposed assessment via Letter 226J. The stakes are high, and brokers must be prepared to assist clients with responding or refuting the IRS's claims. In some cases, ALEs may even expect brokers to share the financial burden of non-compliance.

Reposition Your Relationship From Broker To Trusted Advisor

To prove compliance with the ACA, your groups must file 1094-C and 1095-C forms with the IRS for every qualifying employee. However, this process is time-consuming and prone to human error, which can lead to costly IRS fees. Luckily, ACA compliance solutions can help streamline the reporting process, reduce manual workload, and ensure your groups remain compliant.

With an ACA compliance solution, your groups can determine their ALE status, track their variable hour employees, prove affordability, generate the necessary forms, and submit or e-file the required forms to both employees and the IRS.

While some third-party companies offer full-service solutions for your clients' filings, maintaining in-house ACA reporting can help you build long-term, consultative relationships with your clients and establish yourself as their trusted partner. By introducing an ACA compliance solution as an add-on tool to their benefits administration software, you can offer a valuable solution that saves your clients time and money, while ensuring their compliance with the ACA.

Maximizing Benefits with Heroes: The Power of Hiring Veterans in the Workplace

lindsay@oncentive.com (Lindsay Morton) — Mon, 22 Apr 2019 07:19:32 GMT

If you're looking to hire new employees, consider hiring veterans. Veterans bring a unique set of skills, experience, and values to the workplace that can greatly benefit your organization. They possess exceptional leadership skills, adaptability, and a solid work ethic, making them ideal for the constantly changing business world.

Military service requires individuals to take on leadership roles and make quick, decisive decisions under challenging circumstances, skills that translate well to the civilian workplace. This can be especially valuable in a business setting, where effective leadership is crucial for success. Additionally, veterans have a proven track record of adaptability and flexibility, being trained to adjust to new environments, technologies, and cultures.

Veterans bring a strong sense of responsibility and commitment to the workplace. They are reliable and dedicated to completing tasks to the best of their ability, and they understand the importance of following rules and procedures. The Society for Human Resource Management (SHRM) states that companies that have a diverse workforce, including veterans, tend to have higher levels of innovation and improved financial performance.

The Work Opportunity Tax Credit (WOTC) provides businesses with financial incentives for hiring eligible veterans, including those who are long-term unemployed and have service-connected disabilities. Employers can receive up to $9,600 in tax credits per new hire, providing a significant benefit to companies that take advantage of this program. Tax-exempt organizations may also be eligible for WOTC.

To find veterans looking for meaningful employment, check out Hire Heroes USA . Hire Heroes USA provides free career services to service members, veterans, and military spouses who are seeking jobs in the civilian workforce. The organization provides personalized one-on-one coaching resume services, mentoring, workshops, a job board, career fairs, and more. In 2021, Hire Heroes USA helped place 12,594 veterans and military spouses with an average salary of $62,680.

The benefits of hiring a veteran are numerous and compelling. From their leadership skills and adaptability to their strong work ethic and sense of responsibility, veterans can be valuable assets to any organization. Take advantage of the opportunity to bring the unique skills and experiences of a veteran to your team. And, as an added bonus, by hiring a veteran, you may be eligible for tax credits under the WOTC program.

This infographic was originally posted on OnCentive.com

Why High Turnover Industries Should Take Advantage Of Hiring Incentives

lindsay@oncentive.com (Lindsay Morton) — Tue, 22 Jan 2019 08:15:11 GMT

Are you facing the challenge of constantly hiring and training new employees in your high-turnover industry? It can be costly and time-consuming, but there are solutions available. Federal and state hiring incentives can help offset these costs and encourage businesses to hire and retain certain types of employees.

One such incentive is the Federal Work Opportunity Tax Credit (WOTC), which provides a tax credit to businesses that hire individuals from certain target groups, including veterans, temporary assistance for needy families (TANF) recipients, and ex-felons, among others.

You could receive up to $9,600 in tax credits per eligible new hire.

WOTC represents a permanent reduction in income tax, directly reducing a business’s effective tax liability. In order to capture these credits, a business needs to apply within the first 28 days of a new employee’s start date, which makes WOTC credits often a function of a company’s HR department, rather than an accounting department.

Additionally, there are various state-level hiring incentives available, such as credits for hiring employees from disadvantaged backgrounds or those living in high-unemployment areas. These credits can vary in amount and eligibility requirements, but can provide a significant financial benefit to businesses that take advantage of them.

By thoroughly evaluating your eligibility for all available credits and incentives, businesses in high-turnover industries like retail, hospitality, customer service, call centers, manufacturing, and staffing can offset the costs of hiring and training new employees, helping to reduce turnover and improve retention rates.

Don't overlook the potential benefits of federal and state hiring incentives. With careful evaluation and compliance, these credits can provide a valuable financial boost to your business. Contact the experts at OnCentive for more information or to receive a complimentary eligibility assessment.