More UI FAQs
Frequently Asked Questions About Unemployment Fraud
- How do I report unemployment fraud?
- Information on reporting unemployment fraud can be found at:
- What is considered unemployment fraud?
- Whenever a claimant conceals or misrepresents any eligibility
information that can effect benefits paid you have potential fraud. Read
examples of fraud.
- How do you find out about unemployment fraud?
- The department has various means to detect fraud and abuse. A few include: auditing employer records,
comparing benefit claims to payroll records in Wisconsin and other states, exchange of information between
agencies, complaints from employers and tips from the public.
- What can happen if you commit unemployment fraud?
- Any benefits paid as a result of fraud must be paid back. Also, Wisconsin law provides for penalties
and/or criminal prosecution for fraudulent claims.
- What are the penalties and how do they work?
- When a claimant intentionally conceals information affecting unemployment eligibility, they lose an amount of their
future unemployment benefits (benefit reduction). The claimant is also assessed a penalty they are required to pay out of pocket.
The benefit reduction must be satisfied before the claimant can receive any unemployment benefits. A benefit reduction lasts
for six years from the date of the determination. It must either be satisfied by claiming benefits during the six year period
or the six year time limit runs out. A benefit reduction cannot be paid. The benefit reduction amount must be claimed. The
benefit reduction is in addition to any over payed benefits which must be repaid.
- When is someone prosecuted for unemployment fraud?
- In cases involving repeat offenders and/or large overpayments, the department has the legal
right to pursue criminal prosecution through the legal system. The department works with the appropriate
District Attorney to get criminal charges filed against the offenders.
Criminal penalties are in addition to administrative penalties and include fines from $100 to $500 and
imprisonment up to 90 days (or both) for each offense.
- What is employer aiding and abetting?
- An employing unit aids and abets a
claimant when, they have knowledge that a claimant is submitting
or intending to submit a false claim and the employer either (a) renders aid to the
claimant who submits a false claim, or (b) is ready and willing to render aid, if needed,
and the claimant who commits the concealment knows of the employing unit's willingness to
aid in the concealment.
- What happens to employers for aiding and abetting?
- An employer determined to have aided and
abetted a claimant in committing an act of concealment or misrepresentation is assessed an
administrative penalty. The penalty equals the amount of the claimant overpayment. In
addition, improperly paid benefits are charged against the employer found guilty of aiding
and abetting even if the improperly paid benefits are recovered. Wisconsin law provides
for the criminal prosecution of employees and employers participating in aiding and
abetting to obtain benefits not due.
- Do I have to report working on my weekly claim if I have not been paid yet?
- Yes. All wages must be reported on your weekly claim certification for the week in which you worked,
not in the week you are paid.
- Do I have to report working if I am working for payment other than money?
- Yes. The value of any kind of remuneration or payment must be reported in the week the payment is earned.
Wages are every type of pay for work done, including room and board, cash payments, tips, commissions
and "working off a bill".
- How much can I earn before I have to report my wages?
- Absolutely nothing. Any and all wages earned must be reported on your weekly claim while collecting
- I have an overpayment. Where do I send my payments?
- Mail your payment to: Unemployment Collections, P.O. Box 7888, Madison, WI 53707.
Be sure to include your social security number with all correspondence.
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