Unemployment Fraud and the Risks to Nonprofit

In the midst of the pandemic, unemployment benefit claims skyrocketed—impacting employers across the country with increased fraudulent benefit claims. And the number of reported incidents is staggering—driving up the cost of taxes for nonprofits and causing frustration for both employers and their employees. Nationally, states processed more than one billion unemployment claims in 2020 alone, amounting to over $500 billion in paid benefits. Unemployment systems in nearly every state have been impacted by international and national crime syndicates with 35% of applications being fraudulent.

It's more important than ever that employers carefully review their quarterly charges statements for any discrepancies—specifically for individuals listed as receiving UI benefits who are still actively employed with your nonprofit. By doing so, you not only protect your assets but you also help to protect your employees who are being targeted by these fraudsters.

While government agencies continue to grapple with the theft of millions of dollars through fraudulent UI benefit claims, UST recently compiled over-whelming statistics surrounding UI fraud and the impact on employers to create the 2022 Fraudulent Unemployment Infographic . Discover the overwhelming facts about unemployment fraud and how it can affect your workforce.

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