| [ 1.9.1 - Objective ] [ 1.9.2 - Policy ] [ 1.9.3 - Initial Claims Indicators ] [ 1.9.4 - Employer Indicators ] [ 1.9.5 - Overview ] [ 1.9.6 - Investigation ] |
| [ Field Tax Procedures Manual - TOC ] [ Ch 1 - Status Investigations ] [ Ch 2 - Employers Quarterly & Adjustment Reports ] [ Ch 3 - B-27 (Block Claim) Investigation ] [ Ch 4 - Tax Collections ] [ Ch 5 - Forms ] [ Ch 6 - Miscellaneous ] [ Ch 7 - Electronic Worklists ] [ Ch 8 - Rule 13 Tax Coverage Hearings ] | |
| [ 1.1 - Purpose of Status Investigations ] [ 1.2 - Status Reports ] [ 1.3 - Termination vs Suspension of an Account ] [ 1.4 - Address Change ] [ 1.5 - Code 1 (G1CP) ] [ 1.6 - Statute of Limitations ] [ 1.7 - Appeals Decision ] [ 1.8 - Partial Transfers ] [ 1.9 - Fictitious Employer Detection (FED) System ] [ 1.10 - Unemployment Tax Registration (UTR) ] | |
Chapter 1: Status Investigations |
|
| [ 1.9.1 - Objective ] [ 1.9.2 - Policy ] [ 1.9.3 - Initial Claims Indicators ] [ 1.9.4 - Employer Indicators ] [ 1.9.5 - Overview ] [ 1.9.6 - Investigation ] |
The FED System's primary purpose is to preserve the solvency of the Unemployment Compensation Fund by preventing the payment of fraudulent unemployment benefits. The Fictitious Employer Detection (FED) System is a formalized approach to the identification and investigation of potential fictitious employers. Identification of the potential fictitious employers is achieved through a combined evaluation of the employer and claimant population.
TWC is committed to the proper reporting and collection of taxes for the purpose of paying unemployment benefits. To this end, the Tax Department will investigate and pursue fraudulent employer/claim activity according to the provisions of Chapter 214 of the Texas Unemployment Compensation Act (TUCA).
Initial Claims are checked daily.
The Last Employing Unit of an Initial Claim is evaluated.
The FED System uses attributes from unemployment insurance claims and employer tax accounts to identify possible fraudulent employer/claim conditions. Each of the indicators is assigned a weight factor. The FED System will run weekly and FED assignments will be issued on Tuesday of each week.
Telephone claims, Internet tax report filing and Internet employer registration may set the stage for increased fraud in the UI program. In addition, an Accounts Examiner may already have a delinquent report or monetary assignment if the employer they are dealing with is fictitious.
