Unemployment Insurance Fraud… Could It Happen To You?
Bill Meyer CPA, Managing Partner
On Thursday, March 11, 2021, Managing Partner Bill Meyer appeared before the Budget Review Subcommittee on Personnel, Public Retirement, and Finance of the Kentucky General Assembly. As a Past President of the Kentucky Society of CPAs , he was asked to represent Kentucky CPAs on the topic before the subcommittee – unemployment insurance fraud. Bill testified that Strothman and Company had received a number of fraudulent unemployment insurance claims, as have many of the firm’s clients. In fact, Bill disclosed that a fraudulent claim had been filed in his name, which contained his correct Social Security number and payroll data. He also told the subcommittee that one of the firm’s clients had received over 200 false claims (and they only have 15 employees). The legislators were rightly concerned about widespread unemployment fraud in Kentucky, and the negative effect that was having on paying legitimate claims on a timely basis.
The other topic discussed was the issue of incorrect 1099 forms. In the cases when the fraudsters are successful in receiving cash for unemployment claims, a Form 1099-G is sent to the named recipient. That income is also reported to the IRS, and is reportable as taxable income in the majority of cases. If you are concerned about potential fraudulent unemployment insurance claims, either for yourself or for you business, please contact your Strothman and Company representative for more guidance on this matter.