When employers do not meet their legal responsibility for UI contributions, costs are shifted onto employers that do.

     In order to maintain the integrity of the UI program and to supplement current Department employer tax fraud detection programs, a 24-hour toll free hotline is available for reporting employer fraud activities.

Examples of Employer Tax Fraud Activities:

• "off the books" or "under the table" wages
• intentional misclassification of workers as independent contractors
• SUTA Dumping - engaging in tax rate manipulation schemes

     Misclassifying worker status and paying workers off the books can have a negative impact on both workers and employers in those industries where these practices are prevalent.

1. It eliminates the protection of benefits workers are entitled to and enables unscrupulous employers to ignore labor standards.
2. It creates an un-level playing field for employers and results in responsible employers suffering unfair competition, facing higher costs, and being underbid by competitiors who intentionally misclassify workers.

     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.

     You are an important source of 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 this complaint form to (518) 485-6172
• mailing this 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.