Tax Avoidance Detection Efforts
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.
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,
- Contacting the Compliance section by calling the toll-free
hotline at 1-800-686-1555 (Option 2), or by faxing the information
- E-mailing us at
- 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:
- Who is committing fraud or has a questionable practice?
- What is the person's/employer's full address?
- What is the person's/employer's telephone number?
- What is the person/employer doing? (Working? Running a
business?/SUTA Dumping? Misclassifying workers? Underground
- When did the person/business start doing this?
- If the person is working, what is the employer's name, address,
and telephone number?
- What is your name, address, and telephone number?
We appreciate your help. Remember, you could be our only way of
knowing about a claimant or employer committing fraud.