UNEMPLOYMENT INSURANCE - WHAT HAPPENS IF EMPLOYER DOES NOT PAY TAXES

There are several methods to report Employer Tax Fraud and while the failure to pay UI taxes in and of itself may not tax fraud the DOL recognizes the following examples for reporting employer fraud activities:

•"off the books" or "under the table" wages

•SUTA Dumping - engaging in tax rate manipulation schemes. SUTA Dumping occurs when employers and/or their representatives manipulate the UI system by developing schemes to shift workforce payroll to other entities for the purpose of obtaining lower tax rates.

Information about employers committing fraud and you may anonymously and confidentially report UI Employer Tax Fraud activities by:

•contacting our 24-hour toll free Hotline at 1-866-435-1499
•contacting our UI Fraud Unit at (518) 485-2144 from 8:00 a.m. to 4:00 p.m.
•faxing a complaint form to (518) 485-6172
•mailing a complaint form to: New York State Department of Labor
Unemployment Insurance Division
W.A. Harriman Campus
Building #12
Liability & Determination Fraud Unit, Room 356
Albany, NY 12240-0322


Those who commit fraud are subject to fines, penalties, and/or criminal prosecution."