States will soon be issuing a Form 1099-G to individuals who received unemployment benefits during 2021. While the number of fraud cases has dramatically decreased since 2020, it is possible that the receipt of the 1099-G will uncover unemployment fraud cases that were not previously detected. What actions should you and your employees take if they receive a 1099-G and never filed for unemployment in 2021?
As an employer, please report the possible identity theft issue to Thomas & Company so we can notify the state, mark the case as potential fraud and monitor your account for erroneous charges.
Individuals who received a 1099-G and did not file a claim should take the following steps:
- Report the fraud to the State Workforce Agency and their HR department. It is more efficient and streamlined to file a fraud report online whenever possible. A complete listing of the contact information by state can be found here (UI Claimant Fraud Contacts)
- Employees should report the identity theft to the FTC at https://www.identitytheft.gov/#/unemploymentinsurance.
- Employees should also report the identity theft to the IRS to help avoid paying taxes on the 1099-G income. This can be done via phone at 1-800-908-4490 or by filing an IRS Form 14039 – Identity Theft Affidavit (https://irs.gov/pub/irs-pdf/f14039.pdf)
- Contact their bank, credit card companies and all three credit reporting agencies (Experian, TransUnion, and Equifax) to place a freeze on their credit reports to further protect their identity during the investigation.
Identity Theft Protection programs may be an additional resource for your employees to explore for assistance in resolving the UI Fraud claim. If you do not offer an Identity Theft Protection program or your plan does not offer assistance in uncovering the source of the identity theft & assistance in resolving the UI Fraud claim issue, we have partnered with Aura Identity Guard, a leader in identity theft protection, to provide your employees with protection for a low monthly rate. Aura is unique in that your employee will be assigned a dedicated Case Manager as a single point of contact to assist with:
- Contacting the state workforce agency to help resolve the UI Fraud claim.
- Determining if they have been a victim of other identity theft and help them resolve it.
- Providing ongoing protection from fraud to help achieve personal and financial goals.
For more information about Aura Identity Guard, please visit https://get.identityguard.com/thomasco
For more information about Unemployment Fraud and to find answers to commonly asked questions, please refer to our UI Fraud Support Resources at U.I. Fraud. If you have any questions, please contact your Client Relationship Manager. Thomas & Company is committed to monitoring these situations that impact your unemployment costs and we will continue to work together to keep your costs under control.
