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Question about an employers responsibility to report fraud?

Category: Law & Legal

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I have a friend who runs a small 10 person or so business. He recently found out that one of his employees is drawing unemployment while he's paying them. He say's he's not going to report this person, but just let them deal with it when he files her tax information next year. I'm curious if he can get in any legal trouble for knowing someone is on unemployment but not reporting it while he is paying them.

Gaytheist Buddha
Gaytheist Buddha

Except in rare instances involving the abuse of minors or the elderly, there is no obligation for anyone to report a crime.

michr
michr

If he knowingly participates in unemployment fraud he can be fined, and his rates for unemployment insurance can be raised just as if he had a lot of claims against his account.......

lyndsay c
lyndsay c

It would be far to difficult to proove by the benefits office unless he said it to them or admitted he knew, and I doubt that really. Realistically I would report it, I'm not keen on things like that, seeming he has discussed it with everyone he might as well grass her up.


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