Prevent fraud and strengthen the integrity of the unemployment insurance program by:
Properly classifying workers
For unemployment insurance purposes, employers must classify workers as either employees or independent contractors. Employers must pay unemployment tax on employees’ wages. Employers do not have to pay taxes on independent contractors' earnings. If employers misclassify workers as independent contractors, they usually do not pay taxes or report the workers' wages to the Division of Employment Security. DES may begin a wage and liability investigation of the employer. If DES finds that you have misclassified workers, you may have to pay additional taxes with interest and penalties.
Carefully reviewing statements of benefit charges
DES provides employers with a copy of benefits charged against their account for each quarter. Benefit charges affect your unemployment tax rate. If you disagree with any of the benefit charges or find errors, you must follow the instructions in the notice to protest the charges.
Responding to DES’s National Directory of New Hires Notice within 14 days
Responding to DES’s requests for separation information
After a claim is filed, DES notifies the individual’s separating/most recent employer and provides the reason for separation given by the claimant. This helps prevent fraud because employers can confirm or contest the information the claimant gave. You must respond to DES to prevent improper payment of unemployment insurance benefits. The deadline for a timely response is on the notice.
Responding to Wage Audit Notices
DES cross-checks wage and new hire databases with the unemployment benefit recipient database to identify individuals who may have improperly received unemployment benefits. Wage Audit Notices should be completed and returned to DES. The deadline for a timely response is on the notice.
Providing accurate wage information
Providing DES with accurate wage information for workers ensures that individuals entitled to benefits are paid the correct amount.
Note: If you believe your account has been compromised, contact the Employer Call Center at 866-278-3822.