Tax Avoidance Detection Efforts
State Unemployment Tax Act (SUTA) Dumping
"SUTA Dumping" is an illegal accounting scheme designed to help employers evade UC experience-rating systems. The motivation and encouragement for this type of activity stems from the employers' ability to reduce expenses and increase profits through nonpayment of UI taxes owed.
Misclassification of Workers
A recent study by the U.S. Department of Labor suggests that on average 13% of employers misclassify one or more workers as independent contractors, thereby avoiding the payment of their "fair share" of UI contributions.
This refers to individuals and businesses entities that deal in cash and use other schemes to conceal their activities and their true tax liability from government licensing, regulatory and taxing agencies. Examples of such entities range from baby sitting to selling narcotics.
Potential UI fraud information and reporting of questionable employer practices from concerned citizens can be provided to Compliance in a variety of methods, such as:
- Contacting the Compliance section by calling the toll-free hotline at 1-800-686-1555 (Option 2), or by faxing the information to 1-614-466-8523
- By writing us at Ohio Department of Job and Family Services, Office of Unemployment Compensation/Compliance TAD, P.O. Box 182404, Columbus, OH 43218-2404.
- Using the secure website by clicking the following link: Report UC Employer Fraud
We appreciate your help. Remember, you could be our only way of knowing about a claimant or employer committing fraud.