Job & Family Services Office of Unemployment Compensation
Bureau of Integrity Assurance

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.

Underground Economy

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:

  1. 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
  2. E-mailing us at UC_Compliance@jfs.ohio.gov 
  3. 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.

Don't want to give us your name? That's okay, but knowing who you are gives us a chance to obtain additional details if needed. Please include as much of the following information as you can:

  1. Who is committing fraud or has a questionable practice?
  2. What is the person's/employer's full address?
  3. What is the person's/employer's telephone number?
  4. What is the person/employer doing? (Working? Running a business?/SUTA Dumping? Misclassifying workers? Underground Economy)
  5. When did the person/business start doing this?
  6. If the person is working, what is the employer's name, address, and telephone number?
  7. What is your name, address, and telephone number? (optional)

We appreciate your help. Remember, you could be our only way of knowing about a claimant or employer committing fraud.