Failing to report wages to unemployment
Scenario: My friend has been on unemployment for 5 months with no job. However, he has been working for the past 2 months and is still filing for unemployment and not reporting he is working. So far he has gotten 4 checks from his job as well as unemployment.
I warned him if he does it enough they will catch him and he could serve time. He thinks if he only does it 4-5 times he will be ok and at best will owe taxes at the end of the year back to the state.
What could happen and how he is still getting these checks despite working? His job does take taxes out it’s not a cash paying job either it’s a corporate job.
Answer: He won’t do time. If he has a legitimate job, i.e.: paying taxes and everything else, once unemployment finds out he will be required to repay all benefits he received while he was working. Employers report all wages earned to the IRS. The IRS sends reports of the wages to unemployment in order to determine benefits. Unemployment hearing officers have a spreadsheet of all the money you have earned from each employer and which quarter it was earned in. It is impossible to hide wages even if you are paid in cash.He will also have another hearing to determine if it was fraud. Most likely after that they might impose another fine on him, and then he will be banned for filing for unemployment benefits for about a year. If he fails to repay the benefits they tell him to, then he will also not be able to file for benefits again until that is paid off. People that are arrested for unemployment fraud is a very complex thing and happen extremely rarely. In all my hearings held even when I found someone liable of fraud they were not arrested.