Benefit Accuracy Measurement

What Is It?

The Benefit Accuracy Measurement Program is a management information system that assists State and Federal managers in controlling fraud and errors in the Unemployment Insurance Program. The tool provides valid information on the rates, responsibility for, and causes of unemployment insurance overpayments and underpayments. The benefits of the audit are better detection, prevention, elimination, and collection of improper payments.

What Does It Do?

Each week, a sample of weeks compensated unemployment is randomly selected for audit. Each selected week is audited to determine if the person who received the payment during that week was eligible for the amount of benefits he or she received.

The audit consists of:

  • The person selected for audit is interviewed
  • Unemployment insurance claim records are reviewed
  • Attempts to find work are checked
  • Reasons for becoming unemployed are verified

All are attempts to be sure that the claimant was eligible for benefits received during the audited week.

Based on the investigation, a determination is made as to whether unemployment insurance benefits were paid properly or improperly. If paid improperly, it is determined whether the error was made by the claimant, the Unemployment Insurance Division, or the employer. Finally, the reason for the improper payment is documented.

Once all this information is obtained, a statistical analysis is performed and management information on the rates, responsibility, and cause, of overpayments and underpayments of unemployment insurance benefits is produced.

Why Are Employers Contacted? Employers are an integral part of the investigation.

The three main reasons why Benefit Accuracy Measurement investigators contact employers are:

  1. To verify the past or present wages of the person selected for audit
  2. To verify that, for the week of compensated unemployment selected for audit, the person did inquire about or apply for work with the employers he or she reported to the unemployment insurance office
  3. To verify that the reason given to the Unemployment Insurance Office for becoming unemployed or for working reduced hours is correct

Why Is This Information Necessary?

Benefit Accuracy Measurement investigators must verify wages because the right to collect benefits, plus the amount and duration of benefits, is based on previous earnings and any current earnings.

A person applying for or collecting unemployment insurance must be available for and actively seeking work. Persons receiving unemployment insurance are asked to record all work search contacts and the results of each contact. As a result, Benefit Accuracy Measurement investigators verify the work search of persons being audited by contacting the employers reported.

In order to qualify for unemployment insurance, a person must have become unemployed or must be working reduced hours through no fault of his or her own. It is necessary for Benefit Accuracy Measurement investigators to contact employers to substantiate reasons for reduced employment or unemployment of the person being audited.

How Often Are Employers Contacted?

Because the cases for audit are selected randomly, the exact number of visits is not predictable. Benefit Accuracy Measurement investigators will contact employers only when the need arises.

Will the Program Benefit Employers?

Yes. Over the long-run, better detection, collection, and prevention of improper unemployment insurance payments will result in decreased benefit payments; which will have a direct impact in decreasing employer taxes.

Employers Can Help By:

  • Honoring Benefit Accuracy Measurement investigators requests for information
  • Providing the information promptly
  • Providing information that is accurate to the best of their knowledge
  • Attending all unemployment insurance appeals hearings when requested to do so

Cooperation From Employers Enhances the Success of the Program!