We laid off an employee about a month ago and he filed for and received unemployment. I just barely found out from another company that we do business with, that he has been working for them as a W9 contractor for several months now. He started just days after we laid him off.
Isn't it illegal to receive an income while claiming unemployment?
Who would I contact and what kind of proof do I need to file charges? I have an e-mail from the company's president stating which dates he worked for them.
Thanks
2007-11-09 07:26:50 · 10 answers · asked by Jesus Cake 3 in Politics & Government ➔ Law & Ethics
In Texas you have to fill out forms every week or so. On there you have to claim how much you had as income. To not claim it would be illegal. I would contact you state unemployment commission.
2007-11-09 07:35:19 · answer #1 · answered by Debbie Queen of All ♥ 7 · 0⤊ 0⤋
"Isn't it illegal to receive an income while claiming unemployment?" - No. It is illegal to have an income and fail to report it while drawing unemployment.
If a person is earning less than the unemployment payment they can still claim unemployment and receive the difference. As an example if someone earns $250 a week from a job and his unemployment would be $400 he can still draw $150 per week.
You could contact the unemployment office and inform them of what you know.
2007-11-09 15:33:51 · answer #2 · answered by davidmi711 7 · 0⤊ 0⤋
No, it's not illegal as long as this person is reporting his income to the state. Then the state determines if he is eligible for being paid during the week reported. If he is not reporting, then yes it is illegal and because of the fact that he is being paid as a 1099 contracted employee, it will catch up with him eventually.
Don't waste your time with this and for the company president giving you that information about the dates he has worked puts a huge liability on you and this company for a lawsuit. Were you given authorization from your former employee to obtain this information? If not, you should consider the consequences of your actions and are you willing to go to court over this. My advice, leave it alone.
2007-11-09 15:36:20 · answer #3 · answered by Anonymous · 0⤊ 0⤋
If he's making more at the job than what he receives on his checks, he is committing unemployment fraud and needs to be reported immediately. Contact your state labor board, or the office which handles distribution of your unemployment checks and they will begin an investigation; he will be required to pay back all the benefits he received and probably serve probation or jail time too.
If he's making less than what unemployment is currently paying him, then he may still be eligible for collecting reduced checks...the laws vary by state.
2007-11-09 15:40:02 · answer #4 · answered by Vangorn2000 6 · 0⤊ 0⤋
You can receive part time income while on unemployment. As long as this person is claiming the income and letting the unemployment office know then it shouldn't be a problem.
If they are not, that is a different story.
Contact the unemployment office and ask them what to do.
2007-11-09 15:33:33 · answer #5 · answered by Uni 3 · 0⤊ 0⤋
A company paying unemployment can question the payments if they have information that the former employee is working and earning money. Using the companies ID number, it can be questioned. Proof does help.
2007-11-09 15:56:12 · answer #6 · answered by sensible_man 7 · 0⤊ 0⤋
there is no way that you can work, receive a pay check, plus be on unemployment. if the IRS. or unemployment, fines this out you have commit ed. FROM THAT POINT ON YOU WILL ALWAYS BE AUDIT. plus you can do jail time. so figure out whats more important to you. freedom, or none. you never what to pay the IRS. back any thing. good luck in your discussing.
2007-11-09 15:39:40 · answer #7 · answered by Anonymous · 0⤊ 0⤋
You should contest the unemployment case, or move to re-open if you acquiesced in his claim on the first go-round. The email will suffice to make the motion to re-open in most states, but for the hearing you probably will need to subpoena the new employer's payroll records. It's unlikely that it will go that far: the ex employee will most likely cave once he is confronted with his fraud.
2007-11-09 15:34:44 · answer #8 · answered by Anonymous · 0⤊ 1⤋
As long as he is disclosing income to the income assistance agency he is ok...other wise it is fraud.
Contact the unemployement agency with your concern.
2007-11-09 15:39:10 · answer #9 · answered by elysialaw 6 · 0⤊ 0⤋
It is illegal, i think, but i'm not sure who you need to contact.
2007-11-09 15:30:38 · answer #10 · answered by Anonymous · 0⤊ 1⤋