Fraudulent unemployment insurance claims have been an unfortunate result of the pandemic and a persistent problem that continues to plague employees and employers alike. Illinois has been particularly savaged. The fraud has taken many forms and has become highly sophisticated.
The Illinois Department of Employment Security (IDES) recently issued information guides and new tools to help employees and employers alike combat the attempted fraud.
Employers are strongly encouraged to register for the State Information Data Exchange System (SIDES). This system provides an easy, efficient, and secure method of electronically receiving and responding to unemployment insurance Notice of Claims information requests. These notices allow employers to
compare the name on the request with any layoffs to know if potential fraud is in the works. Employers should screen these notices and respond in a timely fashion.
Reporting Identity Theft Fraud
IDES has developed a new reporting form for employers to report instances of identity theft which resulted in fraudulent claims being filed under the names of one or more of their employees. This guide explains how to securely submit an identity theft report at MyTax.Illinois.gov. Additional guidance to protect employees against identity theft fraud is available on IDES’s employer fraud webpage. IDES requests that all employer ID theft fraud claims now be submitted using the MyTax form and not through any individual IDES email accounts or telephone calls.
1099-G Tax Forms
IDES is in the process of finalizing the annual 1099-G form mailing to all individuals who received unemployment insurance (UI) benefits in 2020. The Department understands that employers often field questions from current or former employees regarding various forms they receive from state and federal agencies. IDES wants to share information regarding the 1099-G form, along with materials employers may find useful.