Protect Your Business from Higher Taxes: Prevent Improper Unemployment Insurance Payments

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An improper Unemployment Insurance (UI) payment happens when benefits are paid by mistake. An improper payment can happen when a claimant or employer gives us inaccurate information, or when we do not receive the information on time. Improper payments can result in higher taxes for all employers. If we detect an improper payment, we will notify you.

Prevent Improper UI Payments

To reduce your costs and improve payment accuracy, provide payment information following these important steps.

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Report all new hires and rehires quickly and accurately. This helps prevent improper payments to a person after they have returned to work.

Note: You must report the date your employee began work, not their hire date, if it is different.

Respond quickly if you receive any Request for Verification of Weekly Earnings notifications. This helps detect and prevent improper payment of UI benefits. (An employee may be eligible for a partial UI payment based on part-time work.)

Avoid expensive appeals and benefit overpayments by quickly providing separation information.

For more information on completing your Notice of Unemployment Insurance Claim Filed (DE 1101 CZ) (PDF) online, visit State Information Data Exchange System.

Penalties

If you do not follow state and federal requirements when you provide employee information, you could face serious penalties including:

  • Improper account charges for benefits paid to ineligible claimants.
  • Increases in employer UI taxes.
  • Fines and penalty fees.

For more information, watch How to Protect Your Business from Higher Unemployment Insurance (UI) Taxes (Youtube).