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Auditors finding more unpaid taxes in 2010

10/18/2010

10-050

Media contact: Jamie Swift, communication manager, 360-902-0904

OLYMPIA – Employment Security auditors are identifying more unpaid unemployment taxes by placing added focus on industries that have been more likely to fail to report employees and wages.

Through September 2010, auditors found about three times the number of unreported workers compared to the same period last year. Auditors identified 11,485 unreported workers and $196 million in unreported wages – a huge increase over the 4,168 unreported workers and $76 million in wages found during the first nine months of 2009.

The auditors also found $2.12 million in unpaid taxes this year – compared to $1.35 million the over the same period in 2009. 

“We’re getting better and better at this,” said Employment Security Commissioner Paul Trause. “That’s bad news for employers that aren’t playing by the rules and great news for the vast majority of employers who are.”

When businesses don’t report all of their workers and wages, they avoid paying taxes they should be paying and they reduce the likelihood that their workers will qualify for unemployment benefits if they’re laid off.

Over the past two years, the industries with the most unreported workers are freight trucking, schools, contractors, construction, salons, rental services, janitorial, real estate, recreational facilities and couriers.

The success of Employment Security’s targeted-auditing program has earned the department an award from the federal Department of Labor. The Innovations in Integrity Award was one of three created and bestowed by the federal agency to commemorate the 75th anniversary of the nation-wide unemployment-insurance program. 

Anyone who suspects unemployment fraud can report it at 866-810-0210 or online at www.esd.wa.gov (click the “Report fraud” link on the left below the logo). 

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Employment Security Web site – www.esd.wa.gov

Broadcast version

Using targeted auditing, Washington’s Employment Security Department has discovered more unreported workers, unreported wages and unpaid taxes in 2010 than ever before.

Targeted auditing places greater focus on industries that have more typically failed to report workers and wages in the past.  So far this year, auditors have found nearly double the amount of unpaid taxes compared to the same period last year.

When businesses avoid paying unemployment taxes, their workers may not qualify for unemployment benefits if they’re laid off.

You can report unemployment fraud at www.esd.wa.gov.

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