Unemployment Insurance Fraud
It is considered fraud when an individual or employer knowingly misrepresents material facts that allow someone to collect unemployment insurance (UI) benefits when he or she would otherwise be disqualified. Fraud also occurs when tax liabilities owed to DEW are misrepresented.
Do you know someone who is receiving UI benefits:
- at the same time he or she was incarcerated.
- but not reporting he or she is working and being paid cash “under the table.”
- and not reporting his or her earnings to DEW.
- but not able or available for work due to illness, injury, out of town, etc.
- who’s engaged in self-employment.
Do you know of an employer who is:
- paying individuals cash to avoid paying taxes on these individuals.
- paying individuals as independent contractors that need to be categorized as employees.
- filing employer-filed claims for individuals while still paying individuals for working.
Consequences of Committing Fraud
DEW partners with the SC Attorney General to fine and prosecute UI fraud. If you are found guilty of UI fraud, you will be disqualified from receiving benefits for up to 52 weeks. Providing false information is a crime and subjects you to legal action with fines up to $100,000 and imprisonment up to 10 years.
You also will have to pay back any overpayments received as a result of incorrectly reporting wages. This might mean DEW intercepting your state and federal income taxes and the withholding of future wages to settle the debt.
Read more about overpayments and DEW’s income tax interception programs here.