"Cheating the unemployment insurance program cannot be tolerated, because it
harms the honest workers and the good employers across our state," said IDES
Director Jay Rowell. "We are prosecuting fraud. We are clawing back the money.
Every dollar we recover helps to lower business taxes so owners can use that
money to invest in more employees and help grow our local and state economies."
IDES has confiscated federal and state tax returns from individuals who refused
to repay the debt or refused a repayment plan. Funds were recovered from 22,000
individuals between January and April. Recovering the dollars and fighting
waste, fraud and abuse enhances the Illinois business climate by helping to
lower the payroll taxes that employers pay to fund unemployment insurance
payments.
This is the second year that IDES can garnish federal tax returns, following
bipartisan reforms enacted in 2011. In 2012, IDES recovered $44 million from
21,500 individuals, bringing the two-year total to $82.4 million from 43,652
people.
Protecting the integrity of the Unemployment Trust Fund is paramount. Money
that pays for unemployment insurance benefits comes from a business payroll tax.
The fund's balance is among the factors considered when determining the payroll
tax amount. The lower the fund balance, the higher the payroll tax.
[to top of second column] |
In the 22 months since Quinn appointed Rowell and his overwhelming
bipartisan Senate confirmation, anti-fraud and trust fund integrity
initiatives have saved taxpayers more than $200 million. These
programs include garnishing federal tax returns of unemployment
cheats, checking unemployment rolls against prison logs,
strengthening the anti-fraud unit with attorneys from Attorney
General Lisa Madigan's office, creating a new-hire directory to more
quickly identify fraud, and holding business leaders personally
liable for misstating their company's obligations.
[Text from
Illinois
Department of Employment Security
file received from
the
Illinois Office of
Communication and Information]
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