Fraudulent unemployment insurance claims are a significant problem for employers all across the country. Improper payments can drive up taxes and create additional fiscal headaches for many companies.

These are some reasons why Illinois has increased the spotlight on the state’s fraudulent benefits payments, targeting individuals who have received money even though they were still employed at the same time. As a result, millions of dollars have been collected, and the financial situation for both The Prairie State and its employers has improved.

Job situation improves across state
In addition to the added emphasis on fraudulent payments, Illinois has experienced a number of improvements to the overall job situation this spring.

In March, the unemployment rate decreased to 8.4 percent, the lowest level seen since January 2009, according to the U.S. Bureau of Labor Statistics and the Illinois Department of Employment Security. While recent job creation figures have been low due to winter weather, the better conditions ahead are expected to change that.

IDES director Jay Rowell said in a statement that monthly numbers indicate steady progress, and consumer confidence and spending have helped drive the local economy forward.

Focus on fraud saves money
Over the past three years, Illinois has been determined to return millions of dollars in fraudulent unemployment insurance benefits. Thanks to renewed efforts, tax garnishments and repayment plans, more than $26 million this year alone has been collected.

“Illinois workers are honest and proud,” Rowell said in a statement. “Those who steal money from the fund used to help our neighbors who are out of work must be held accountable. We are not talking about innocent people who made a one-time mistake. They knew they were lying, refused to consider a repayment plan when they were caught, and made enough money at work to earn a tax refund.”

Since 2011, IDES has confiscated more than 58,000 federal tax refunds as a way to get back the improper payments. If that doesn’t cover the debt, the person would then be required to enter a repayment plan. Since the program has been in place, there have been fewer reported fraudulent claims.

Even so, IDES relies heavily on employers to catch waste, fraud and abuse. The communication process is vital, and a speedy answer to any request for information can stop a problem before it forms.

A quick response time is a must so you can manage your unemployment costs, as well as provide and receive accurate data. Corporate Cost Control is well-versed in this aspect, and can help you communicate with all parties related to the unemployment insurance process.


Contact CCC to see how we can save your organization time and money.
Contact our Sales Team
(800) 207-6926

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