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Business Management
   Posted June 15, 2008                                                                                      JLZ Business Services
 

How Employers Can Prevent UI Imposter Fraud

The EDD is committed to maintaining the integrity of the UI Program. Here are tips on how you can help EDD prevent UI imposter fraud and identity theft and, at the same time, help control your UI costs.

Verify Social Security Numbers
When hiring new employees, verify and ensure that their Social Security Numbers (SSN) are correct. The Social Security Administration (SSA) offers employers and authorized reporting agents two methods for verifying employees' SSNs. Use E-Verify - a smart business practice. And it's FREE!

  • Telephone Verification - To verify up to five names and SSNs, call 1-800-772-6270. To verify between six and 50 names, contact your local Social Security office.

  • Large Volume Verification - To verify more than 50 employee names and SSNs, use the Employee Verification Service (EVS). To use the EVS system, you must pre-register. You may also submit requests on magnetic media. For more information, call the EVS Information Line at 410-965-7140 or visit the SSA's Web site at www.ssa.gov/employer.

Protect Your Employees
An important way to protect yourself and your employees is by properly disposing of old payroll records. California law requires you to properly destroy (i.e., shred, erase, etc.) the personal information in all records under your control. For more information on protecting yourself and your employees from identity theft, and updates on recent privacy protection legislation, visit the California Department of Consumer Affairs Web site at www.privacyprotection.ca.gov.

Review Your Employer Notices
UI benefits paid to your former employees represent a charge to your reserve or reimbursable account and, in the case of tax-rated employers, may impact your employer contribution rate for UI. To protect these accounts, employers should carefully review all notices including the Notice of Wages Used for Unemployment Insurance Claim (DE 1545) and respond promptly if there are any discrepancies.

Report Security Violations of Your Payroll or Personnel Data
If your payroll or personnel data has been compromised, or you suspect fraudulent activity on your UI employer account, call EDD's toll-free Fraud Hotline at 1-800-229-6297.

Work With EDD to Stop UI Imposter Fraud
During the course of an investigation, EDD may contact employers to verify information that will authenticate an individual's identity. By cooperating with EDD in a timely manner, you will help protect your UI employer account and your employees from fraud.

Questions regarding your reserve or reimbursable account should be directed to the telephone numbers listed below:

  • Tax Rated Employers: Contribution Rate Group at 916-653-7795

  • Reimbursable Employers: Reimbursable Accounting Group at 916-653-5846