FAQs - Fraud Information for Employers
- I have information about someone who is collecting unemployment insurance benefits and working for cash on the side. Who do I contact to report the fraud?
- How are fraudulent claims prevented?
- I already responded to a Department notice about one of my employees. Why did I get a Request for Additional Information‚ DE 1326ER?
- Why am I receiving duplicate Request for Additional Information, DE 1326ER forms??
- What is EDD doing to prevent social security numbers that have been used fraudulently from being used fraudulently again?
- Will my reserve account be charged for fraudulent UI claims?
- Why did I receive a Request for Information, DE 1326E, I have never filed a UI Claim?
I have information about someone who is collecting unemployment insurance benefits and working for cash on the side. Who do I contact to report the fraud?
Individuals who have information that someone is defrauding one of EDD’s programs, such as Unemployment Insurance, State Disability Insurance or Tax, should:
- Call the Fraud Tip Hot Line at 1-(800)-229-6297,
- Use our online Fraud Reporting form.
The Department considers the information confidential and will protect the identity of the person reporting fraud.
For more information about the Department’s fraud detection and deterrence efforts, visit the following sites:
How are fraudulent claims prevented?
The EDD and employers work together to prevent fraudulent claims.
When an individual files a UI claim, we ask for several identifying pieces of data.
In addition, employers assist EDD in identifying whether the individual filing the claim is the correct individual. We notify the last employer, former employers and current employers when a claim is filed.
The following documents help us prevent fraudulent claims:
- Notice of Claim Filed, DE 1101CZ is sent to the last employer when a UI claim is filed.
- Notice of Wages Used for Unemployment Insurance Claim, DE 1545 is sent to base period employers when benefits are paid.
- Benefit Audit, DE 1296B is sent to an employer who reports wages for a social security account number during the same calendar quarter that UI benefits were paid under that social security account number.
UI benefits are taxable and we report the amount of benefits paid to the Internal Revenue Service. This is an additional safeguard.
Review Benefit Audit Information to find out more about the benefit audit process.
I already responded to a Department notice about one of my employees. Why did I get a Request for Additional Information, DE 1326ER?
You received the DE 1326ER because there is a question as to the identity of the individual who filed the UI claim. The Department needs your help to validate claim filing information provided by that individual. Mail the completed form (and any other additional documentation) within ten days of the mailing date of the DE 1326ER. The information you provide will be used to ensure that all charges made against your account are correct.
Why am I receiving duplicate Request for Additional Information, DE 1326ER forms?
When a claim is filed the DE 1326ER form is mailed to base period and last employers. Our system recognizes duplicate employer names and will not mail the DE 1326ER when the employer names are an exact match. However, if the individual who filed the UI claim did not provide the Department with exact employer(s) name(s) our system will mail a DE 1326ER to each employer name. For example:
- An individual reports that he/she worked for John Brown and Company.
- The employer’s correct name is Brown and Company.
In this example, the employer would receive a duplicate DE 1326ER because the employer names are not an exact match. Our system would mail a form to each employer name; one to John Brown and Company and one to Brown and Company
What is EDD doing to prevent social security numbers that have been used fraudulently from being used fraudulently again?
When EDD receives information that an identity theft has occurred, we flag the social security number used to file a UI claim. If anyone attempts to use that social security number again, the Department will request additional identifying information from the individual filing the claim. If the true owner of the social security number is not the individual filing the claim, we determine the true owner and deny a claim to the imposter.
Will my reserve account be charged for fraudulent UI claims?
If you are a tax rated employer, any incorrect charges will be removed. If you are a reimbursable employer, your account is charged for any payments that were issued. Questions regarding your reserve or reimbursable account should be directed to the telephone numbers listed below:
- Tax rated employers may call the Contribution Rate Group at (916) 653-7795
- Reimbursable employers may call the Reimbursable Accounting Group at (916) 653-5846
Why did I receive a Request for Information, DE 1326E, I have never filed a UI Claim?
You are receiving this notice because a UI claim was filed using the social security number documented on the notice and there is a question about the identity of the individual who filed the claim.
Complete the form and provide the documentation that is being requested to verify ownership of the social security number. You are not required to provide the requested information, but Department needs your assistance and cooperation to ensure benefits are paid only to those who are legally entitled to receive them.
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