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Stop Improper Unemployment Insurance Payments

Sometimes, Unemployment Insurance (UI) payments are made by mistake. These are called improper payments. They can happen when:

A person or business gives wrong information.
The EDD is missing important information or doesn’t receive it on time.

These mistakes can lead to higher taxes for all employers. If we find an improper payment involving your business, we’ll let you know.

How to Prevent Improper UI Payments

To protect your business and keep your UI costs down, follow these simple steps:

1. Report All New Hires and Rehires

Make sure you report every new employee and anyone you rehire right away. This stops payments from going to people who have already gone back to work.

Tip: You must report the date when your employee started working. A person’s hire date can be different.

2. Respond Quickly to Verification Requests

If you get a Request for Verification of Weekly Earnings notification, answer it as soon as you can. This helps us see if someone should get unemployment benefits.

Remember, some employees may qualify for partial unemployment benefits if they are working part-time.

3. Provide Clear and Complete Information

When a worker’s employment ends, be sure to provide accurate details. This helps avoid overpayments and appeals.

For more help with your Notice of Unemployment Insurance Claim Filed (DE 1101 CZ) (PDF), use the State Information Data Exchange System.

Penalties

If you give incorrect information or miss important steps, you could face serious penalties, including:

Paying for unemployment benefits that workers should not have received.
Higher UI taxes for your business.
Fines and penalty fees.

Want to learn more? Watch our video, How to Protect Your Business from Higher Unemployment Insurnace (UI) Taxes, on YouTube.