Unemployment Audit???

[marilynme]

What is the name of your state (only U.S. law)? PA
My husband is on unemployment. All of a sudden because of his last employer's grudge that he is collecting from, someone has told labor/industry that he is making money elsewhere also but not reporting his money for taxes. They say they are auditing us and that all bank accounts and personal files will be gone through. What rights/limits do they have to this information? thank you

 

[cbg]

My daughter the English teacher thinks she is holding the tide back singlehandedly when it comes to grammar, and I think she may be right.

Okay, WHO is saying they are going to audit you?

 

[commentator]

If someone reports that a person is working and receiving benefits, he is audited by the fraud unit, or overpayment unit, or whatever it may be called in that state. They also audit a certain number of random filers, who have not been reported for fraud, as well. So don't take this too personally. When he signed up for benefits, he gave the state the right to as much information as they need to verify his continuing eligibility.

If you listen carefully, they probably didn't say they were going through his bank accounts and personal papers. They do have access to the wage records of anyone he is supposedly working for, can contact and interview this employer to determine if he is or has been working there. If it is a cash only type job, they can still do this, and might penalize the person who was paying him. They can, if they determine he has been working and not reporting wages, declare an over payment, stop his benefits, recoup the money from the claim.

Long story short, if you work, you should declare the wages, let the unemployment office sort it out. If you've done right, there is no problem with being audited.

 

[marilynme]

thanks

thank you, this does help. yes it was Labor and Industry who said they were going to audit all records, bills, accounts, etc. It all sounds about right. Guess we will see what happens. thank you again!