Warning for Texas Practices: Fraudulent Applications for Unemployment Benefits

Has Someone in Your Practice Received a Notice of Application of Unemployment Benefits? Don’t Ignore It.

Medical practices in Texas should be on alert for potentially fraudulent unemployment claims currently being processed in the thousands by the Texas Workforce Commission. According to recent reports, the department is seeing a significant increase in people filing fraudulent claims compared to other years. 

Importantly, many of these fraudulent claims could have been avoided had the initial notification not been ignored. If you receive a Notice of Application of Unemployment Benefits or any other correspondence regarding verification of claimant earnings, don’t ignore it. You must respond to these notices by the due date listed on them. Otherwise, the TWC will process and pay out benefits for any uncontested claims (i.e. any claims that do not receive a response by the due date).

Employers must respond to stop the fraud, so make sure you’re set up to avoid a potentially costly situation. Here’s our tips to make sure you are prepared.

  1. Talk to Your Team.

Make sure your team is aware of the situation and what to look out for. It’s a good idea to make this an item at the topic of your next few meeting agendas to keep the issue top-of-mind for as long as it continues to be an elevated risk.

  1. Document It Somewhere Visible.

Make sure your team is familiar with what does and doesn’t require immediate attention. For reference, here’s an example of a Notice of Application for Unemployment email: 

For a quick fix, print this visual guide and post it somewhere visible in your office. This way, your team has a visible reminder for what to look out for in their inbox.

  1. When it Doubt, Contact Your CPA or the State of Texas.

Don’t let a potentially costly situation sneak up on you. If you receive a potentially fraudulent application for unemployment benefits, contact your CPA or the State of Texas immediately. The faster you contact the appropriate people, the less likely you are to experience costly issues within your practice. 

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