Fraud Prevention and Detection Activities for Work and Wages
The Employment Development Department (EDD) collects data from employers to reduce UI fraud and can detect claimants who do not report work or wages. Claimants can avoid disqualifications, overpayments, and penalties for UI fraud by properly reporting their work and wages. Committing fraud has serious consequences. Learn more on Fraud and Penalties: What You Need to Know.
Fraud Prevention: Properly Reporting Work and Wages
When certifying for UI benefits, always remember to report your work and gross wages on your Continued Claim Form (DE 4581) during the actual week that you worked and earned the wages—NOT when you receive your pay.
Example: You worked during the week ending January 11th, but did not receive your paycheck for this workweek until January 12th.
|1st Week on Continued Claim Form (DE 4581)
January 5th to January 11th
|2nd Week on Continued Claim Form (DE 4581)
January 12th to January 18th
|Worked on January 5th and 11th for a total of 16 hours. Report 16 hours of work and the gross wages earned for those hours in this week because this is the actual week that you worked and earned the wages.||Received paycheck on January 12th for work performed from January 5th to January 11th (previous week). Report these earnings in the previous week of January 5th to January 11th because this is when the work was performed and the wages were earned. Do not report wages in this week for work performed during the week ending January 18th for work performed during the week ending January 11th.|
Reminder: The certification week(s) on the Continued Claim Form (DE 4581) always start on a Sunday and end on a Saturday. If your payroll weeks are different than the weeks that the EDD has issued, the EDD suggests you keep a record of work and the wages earned for each day in order to correctly report work and wages under the appropriate week on the DE 4581.
Failure to properly report work and wages while receiving UI benefits will result in disqualifications, overpayments that must be repaid, and penalties. You can find more information on this topic along with specific directions on how to properly report your work and wages by referring to the following resources:
- FAQs - Reporting Work and Wages
- How to Report Work or Earnings
- What is Unemployment Insurance Fraud?
- Step-by-Step Guide: How to Certify for Ongoing Unemployment Benefits (DE 1275C)
- Unemployment Insurance Benefits: What You Need to Know (DE 1275B)
- A Guide to Benefits and Employment Services (DE 1275A)
- Certifying for Unemployment Insurance (UI) Benefits
- Understanding the Continued Claim Certification Questions
Detection Activities: Employment Data and Child Support Collection Data Obtained by the EDD
The EDD collects employment data from employers on newly hired and rehired employees to reduce UI fraud. The EDD then uses the data to cross-match with other states and identify individuals receiving UI benefits while working to ensure the work and wages are properly reported. These efforts help identify individuals who do not properly report their income while collecting UI benefits. The EDD also collects the child support collection data for the California Department of Child Support Services (DCSS) to assist the DCSS in locating parents who are delinquent in their child support obligations.