Accuracy of unemployment payments reaches 11-year high in 2006 - April 27, 2007

07-026

Media contact: Hilary Young, 360-902-9454

Audio: http://fortress.wa.gov/esd/portal/info/newsroom/audiofiles/audionews/

OLYMPIA – The Employment Security Department continued to improve the accuracy of unemployment benefit payments in 2006, reaching an 11-year high.

A review of unemployment claims shows that the percentage of claims that were properly paid has improved by more than 4 percentage points over the last two years. The accuracy rate was just over 93 percent in 2006, up from 92 percent in 2005 and 89 percent in 2004.

“Unemployment benefits are here to help people get back on their feet when they lose their jobs and it’s important that they get what they need, while people who haven’t earned them don’t,” said Employment Security Commissioner Karen Lee. “We use these findings to identify ways to make sure that happens.”

The review included an in-depth audit of 622 unemployment claims that identified a 6.3 percent overpayment rate. That figure is then used to estimate the accuracy of all benefit payments. Of the $720 million paid out in regular unemployment benefits over the year, an estimated $48 million were overpayments, down from $64.5 million in 2005.

More than 88 percent of the overpayments were directly attributed to inaccurate information from claimants and employers. Common issues include claimants not being available to work, not reporting when they return to work and employers misreporting wages on quarterly tax reports. 

“Our recent improvement in benefit payments is a result of our efforts to collect more complete information upfront and our aggressive stance against fraud,” said Lee.

Over the last few years, the department has launched a fact-finding tool that leads staff through a series of questions to capture complete information from people who apply for unemployment benefits and has revised letters and forms to collect more information when there is a question about a claim. 

At the same time, the department has stepped up its efforts to detect and prevent fraud. It cross-matches records with other state and federal agencies, monitors address and telephone information and investigates tips from the public.

The accuracy review is part of a national effort to measure and compare the accuracy rate of unemployment-benefit payments for each state. The U.S. Department of Labor will release its full report in August.

Web Links
Employment Security Department