Unemployment Insurance

[Steve123]

Had a question for those who might be in the know. When collecting unemployment insurance the claimant must report earnings; and, of course, the unemployment comp is reduced accordingly.

How long does it take the Department of Unemployment to catch up on matching tax records up, say, in Massachusetts? Meaning, Lets say the claimant just works, doesn't report and collects? I know in the past I've overlapped a month to six weeks and never heard from anyone. I've heard people say that they never really catch it.

 

[bighank]

I had a friend get caught years later

 

[Steve123]

Thats what worries me. It really sucks because the benefit isn't enough to live on and you can't supplement it. It really is a lousy system.. not to mention costly one. I would honestly rather have that money in my check every week rather than being covered by unemployment.

 

[Sassy]

I may be confused on what you are asking... are you unemployed drawing unemployment insurance? Are you an employer owing unemployment insurance?

The employer pays unemployment insurance Federal (FUTA) and state (SUTA) not the employee. That is all employer contributions. They deducted out of your check FICA (Federal Income Tax), Medicare and Social Security. The amount of FUTA and SUTA is based on the wages paid to employee(s) and is paid monthly for FUTA and quarterly for SUTA. They may not catch it right away, but YES, they will eventually catch up to you. You WILL pay interest on what you own.

If you are drawing unemployment insurance and working at the same time, it only be a matter of time before that catches up with you as well. We had a former employee who did this. Apparently during one of our slow times he filed for unemployment insurance, which was fine, we didn't have work for him so he was allowed to draw. However, he continued to draw even when work picked back up. Needless to say, this has been over 5 yrs ago and he quit at the end of last year. I have received letters for the labor department still trying to track him down for the money he owes them. I had an old address and I knew he had moved but didn't have the new address. It's only a matter of time before they track him to his new address.

 

[luggerhead]

Man I wouldn't try it. The Gov/State always catch you

 

[richiec]

Yeah, the gvt just hired 16k new IRS agents, so I wouldn't try it!

Uncle Sam WILL corhole you in the end

 

[Superkman]

I work with state unemployment auditors frequently. If I understand your question correctly, you were wondering how the state finds out that you're collecting unemployment when in fact you're working and not reporting the income.

The reality is that the only way they will find out is if someone actually initiates the investigation. This can happen from a coworker complaint or a previous employer contests your eligibility. Most states encourage businesses to file "new hire reports" and this can initiate someone to look into your file if mismatching information is present. Another possible way would be when the "new employer" files their quarterly wage/tax statement with your states unemployment office. This report will have your name, ssn, and wages earned, once this is entered into the computer, it may flag you for audit.

I'm not encouraging this but the best way to collect UI payments is to get a job doing something where income is cash only or contract labor instead of employee. This will eliminate any economic gain being reported directly to your state UI department. Also, being paid where you get cash tips and minimum wage may keep any amounts reported to your state UI from being over your allowed earnings threshold.

 

[Hmmm]

Had a question for those who might be in the know. When collecting unemployment insurance the claimant must report earnings; and, of course, the unemployment comp is reduced accordingly.

How long does it take the Department of Unemployment to catch up on matching tax records up, say, in Massachusetts? Meaning, Lets say the claimant just works, doesn't report and collects? I know in the past I've overlapped a month to six weeks and never heard from anyone. I've heard people say that they never really catch it.

Ive been caught unbelieveably quick in Illinois. I work construction so getting laid off is part of the game. Sometimes you get called for a job thats only a few days, then you're off again, sometimes I can go a few years working straight. One time I forgot when I certified my unemployment and they denied me fast.

Someone else I knew had to pay back quite a bit. I wouldnt try to lie to them, unless its off the books pay.

 

[saps]

Just add, it really does depend on your states system. In my state there is a lag of several weeks but just to the south they'll catch you after your first pay check

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