TWC uncovers fraud

The Texas Workforce Commission (TWC) continues to pursue unpaid employer Unemployment Insurance (UI) taxes. In 2006, TWC recovered $32 million in unpaid employer UI taxes, representing a 12.4 percent increase in collection from 2005.

TWC collects unemployment taxes from Texas employers for the Unemployment Compensation Trust Fund, which funds UI benefits to workers that become unemployed through no fault of their own and who are seeking work.

If tax fraud is detected, criminal charges, including felony charges if supported by the facts, are pursued with the appropriate state district attorney offices. Conviction may result in incarceration and/or restitution, and may invoke additional

charges for court costs and fines, and require community service.

Employers subject to UI taxes are those paying $1,500 in wages in a calendar quarter or those that have at least one employee during 20 different weeks in a calendar year.

For more information on employers to pay UI taxes, visit http://www.twc.state.tx.us/ customers/bemp/bempsub3. html. Employers must register with TWC within 10 days of becoming subject to the Texas Unemployment Compensation Act. To report suspected program abuse, waste or fraud related to UI e-mail twc.fraud@twc.state.tx.us. To remain anonymous call tollfree TWC Fraud and Abuse Hotline at (800)-252-3642.