Reporting Unemployment Insurance Fraud
UI fraud can be committed by individuals claiming UI benefits and by employers failing to pay UI taxes on wages paid to workers. The Arkansas Division of Workforce Services appreciates your assistance with preventing claimant and employer UI fraud.
Reporting Claimant Unemployment Insurance Fraud
Employer Fraud
Employers commit UI fraud in several ways. One way that fraud is committed by employers is when an employer pays a worker without any of the required federal/state withholdings. Generally, the payments are made in cash or with a personal check. Another way in which employers commit UI fraud involves the misclassification of workers as Independent Contractors. No withholdings are made, and the worker generally receives an IRS 1099 form each year. In most instances, if a worker is performing services for an employer on a routine basis, the worker is an employee, not an Independent Contractor, and UI taxes must be paid by the employer on the individual’s behalf.
If you are aware of an employer that is paying cash or misclassifying its workers as Independent Contractors, then help stop UI fraud by reporting the activity using the form below.
If you prefer, you may report the fraud by telephone at: 501-682-1058. Your identity will remain confidential.