Division of Employment Security Fraud Prevention, Overpayment - - PowerPoint PPT Presentation

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Oct 16, 2023 239 likes •373 views

Division of Employment Security Fraud Prevention, Overpayment Recovery and UI Tax Collections Status House Select Committee on Legacy Costs from the State Health Plan, Pensions and ESC November 13, 2012 Types of Employers Paying UI Tax

SLIDE 1

Division of Employment Security

Fraud Prevention, Overpayment Recovery and UI Tax Collections Status

House Select Committee on Legacy Costs from the State Health Plan, Pensions and ESC November 13, 2012

SLIDE 2

Types of Employers Paying UI Tax

 Contributory employers  How contributions determined  Contributory employer accounts based

n individual experience/benefits paid

 Maximum tax paid per employer – 6.84%

Mandated by NC Legislature

SLIDE 3

Employer Accounts

Contributory Employers

 196,000 active accounts  35,000 inactive accounts

Reimbursable Employers

Non-Profits

 547 active accounts  52 inactive accounts

State and Local Government

 1,189 active accounts

Indian Tribes: Example - Eastern Band of the Cherokees

SLIDE 4

Experience Rated Balances

Active contributing employers(negative balance) — 34,476 Total negative balance $2.5 billion Inactive contributing employers (negative balance) 13,316 Total negative balance $464 million

SLIDE 5

UI Tax Collections Effort

 10 years of active pursuit of collections  Tax liens filed 45 days after assessment  Active judgments - $13.4 million in taxes  Employers - no assets - $10.4 million  Bankruptcy - $2.0 million

SLIDE 6

Benefit Charges by Industry % of T

tal Charges in 2011

 Manufacturing

30.8%

 Construction

17.2%

 Administration

8.7%

 Retail Trade

7.8%

 Professional

6.7%

 Wholesale Trade

5.8%

 Healthcare

4.0%

 Transportation & Warehouse

3.9%

 Other

15.1%

 Total

100%

SLIDE 7

Overpayments Fiscal Year: June 2011-July 2012

Fraud

Number of Cases

5,561

Overpayments Established

$16,825,155.00

Overpayments Recovered

$7,033,548.88 Non Fraud

Number of Cases

35,128

Overpayments Established

$37,998,302.50

Overpayments Recovered

$21,298,069.68

SLIDE 8

USDOL Estimating Approach

 Small Sample — 500 out of 400,000 cases/ per year  Extrapolated approach

Percentage of Overpayments

July 1, 2008 — June 30, 2011 April 2011 — March 2012 US - 11.05% US - 11.12% NC - 8.6% NC - 10.69% VA - 17.77% VA - 17.42% SC - 17.9% SC - 15.04%

SLIDE 9

Latest DES Initiatives

 Increased Investigative Efforts  Staff adjustments  Interface with district attorneys and OIG  Treasury Offset Program Implementation  Recovery of UI overpayments through IRS  19,065 recipients notified  $50 million — Initially $15 million  Start — January 2013  Increased Use of Technology  National Directory of New Hire  Division of Corrections  NC FACTS

SLIDE 10

 Employers are critical to good decisions  Timely responses on all cases  Encourage employers to use electronic system for response  DES staff — more effort to contact employers  More claims in formation to employers  Claimants  Require more accurate information  Better explanation of importance of accurate statements  Consequences explained  Actively seeking work – individual conference required

Latest DES Initiatives

SLIDE 11

 Improved Initial Claims Adjudication  Better Supervision  Added staff to improve timeliness and quality  Upgraded internal procedures following DOL review

Latest DES Initiatives

SLIDE 12

 Improving Business Processes  UI Benefits Information Systems (IS) to be replaced  RFP process to start in December 2012  3 years  Upgrading operating practices  Now — reliance on paper documents – delays in claims care processing  December 2012 thru October 2013 — NCSU/DES  Imaging of documents for quicker access