Sponsors: First Commerce Bank, Okay Tire and Brake Center, Lyons, John Karby - Edward Jones Investments, Chad Fox Allstate Insurance, Blalock Plumbing and Electric
Sponsors: First Commerce Bank, First National Bank, Griffin Cook and Sons, H&S Pharmacy #1&2, Lyons Chevrolet, Buick, and GM, and Meredith Warner Animal Clinic
Sponsors: First Commerce Bank, H&S Pharmacy #1 &2, Meredith Warner Animal Clinic, Rejuvenate at Jubilee Hills, John Karby-Edward Jones Investments, and Ledford Employee Exchange.
|LABOR DEPARTMENT SUCCESSFULLY RECOVERS MORE THAN $15 MILLION|
FEDERAL INCOME TAXES INTERCEPTED VIA TREASURY OFFSET PROGRAM
NASHVILLE – The Tennessee Department of Labor and Workforce Development has collected $15.3 million of fraudulent unemployment insurance benefits as a result of the Treasury Offset Program (TOP). This program allows garnishment of IRS refunds and other federal payments from those who have collected unemployment benefits fraudulently.
“The ability to reclaim these funds that were fraudulently collected is extremely important to the business community because the health of the Unemployment Trust Fund affects the amount of taxes an employer pays,” said Acting Labor Commissioner Burns Phillips.
Overpayments typically occur when claimants continue to claim benefits after returning to work and fail to report (or underreport) their earnings. Approximately fifty percent of overpayments made in Tennessee during 2012 are for underreported or unreported wages. Another main reason for overpayments is when employers or their third party administrators fail to provide timely and complete information on the reason for an individual’s separation from employment, resulting in the approval of a claim that would otherwise be denied.
The TOP program garnishes IRS refunds as well as the following other federal payments:
Phillips stressed that while this is an important announcement, it addresses the symptom rather than the cause of overpayments of unemployment benefits. “Developing strategies to prevent fraud is of the greatest importance. In the coming months we will share these new measures with the public as they are hammered out.”